UPDATE: The Yelp folks sent some points of clarification to this post, see below. Also, I've received some comments/concerns about 'drinking the Yelp Kool-Aid'. That's what comments are for folks. I write what I hear. If there are pieces of the story I'm missing, comment away...
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The Communications Director of Yelp, Stephanie, reached out to CTR to meet, chat and fill me in on Yelp, developments, etc. With recent questions I received from the local Yelp user base, I took her up on her offer. Yelp's Chicago manager, Andrea, also joined us.
We met up at Tempo and thanks to your questions, I had topics to discuss right away. The first question many of you had: 'It seems that Yelp's marketing blurs with user generated content. Are companies stacking the reviews?' The Yelp team reminded me that yes, advertisers can buy terms, similar to the Google Adwords model,and appear on top of search results.[ From Yelp: Qualified Yelp businesses can advertise with Yelp and part of that includes impressions in our search results based on category (not keywords) Here's a little more info on our sponsorship program."]
For example, I just typed in 'pizza' and got an orange shaded sponsored ad for Aurelio's Pizza. The word 'sponsored' is clear.