The Near Memo Google tests Review Badge of Shame in UK; Google’s Antitrust Travails; SMB Marketing Disconnects
Google Testing Review Badge of Shame & More in UK for Review Abuses:
Google has rolled out a new review “badge of shame” and a new help document titled "Business Profile Restrictions for Policy Violations," introducing stricter actions for businesses engaging in deceptive review practices. Currently being tested in the UK, the policy includes a tiered system of penalties, such as preventing new reviews, unpublishing existing ones, and displaying a "badge of shame" for businesses caught with fraudulent reviews. This marks a shift in Google’s approach, as they historically removed fake reviews without directly accusing businesses of wrongdoing.
The penalties, though designed to improve review integrity, raise concerns about fairness, particularly for businesses that may be falsely flagged. Google has implemented an appeals process, offering business owners a chance to contest these restrictions. However, with previous experiences showing delays in review processes, some wonder how effective the system will be. This effort aligns with broader global regulatory pressures, such as the UK's push against fake reviews and potential influences from European legislation like the Digital Services Act (DSA).
Google’s Antitrust Travails: What’s at Stake in the Latest Legal Battle?
Google is currently facing its second antitrust trial, focusing on its ad-tech dominance. The trial, now in its second week, follows an earlier case where Google was found to be an illegal monopoly in search and text ads. This new case explores the workings of Google's ad exchange and network, with internal documents revealing questionable practices like taking premium cuts from advertisers. Central to the case is how the market is defined—if Google can argue for a broad market with competitors like Amazon and Facebook, it could escape further liability. However, if the market is viewed more narrowly, Google may face more significant consequences, including potential divestitures of its ad business.
Beyond legal outcomes, this case, coupled with Google’s aggressive internal strategies, is tarnishing the company’s public image. Wall Street has already priced in potential legal losses, showing expectations of a major financial impact from a loss. Additionally, these trials may open the door to more lawsuits, including cases like Yelp's, which could bring greater visibility into Google's local search dominance.
Digital Agencies Highlight Disconnect in Local Marketing Priorities:
In a recent survey of nearly 300 digital agencies, a mismatch emerged between the services offered and what agencies perceive as client demand. Agencies commonly offer web design, social media marketing, and SEO, but client demand also includes email marketing and brand marketing—services not prioritized by many agencies. This gap raises questions about how well agencies understand their clients' evolving needs, particularly in small business marketing.
Small businesses also show a surprising lack of attention to crucial tools like Google Business Profiles (GBP) and review management. Despite the importance of local search and reputation management, only a quarter of businesses actively manage their profiles, a disconnect made more mysterious given that business owners frequently use Google for their own research. The data suggests a broader education gap around how these digital tools influence visibility and growth, with many small businesses over-relying on social media while underestimating the value of search and reputation management.
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