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# Google LSA Spam, Catalog Comeback, Delivery Apps
- URL: https://www.nearmedia.co/fake-google-lsas-delivery-apps-paper-catalog-comeback/
- Published: 2022-07-25T17:26:01.000Z
- Updated: 2022-07-25T17:31:57.000Z
- Author: Greg Sterling
- Tags: News

### LSAs, 'Verified Reviews' and Liability 

A week ago Robin Dirksen [discovered](https://twitter.com/robindirksen1/status/1549730874048102400?ref=nearmedia.co) that Google was testing a "not verified" label for local reviews (see below). I assumed it was a "CYA" move by Google to disclaim the veracity of local reviews ("don't blame us"). Some people saw it as a prelude to Google implementing a review-verification system. Hopefully it is the latter, which begs the question of how rigorous any such system would be. But Google's significant fake reviews problem is [quickly polluting Local Services Ads](https://www.seroundtable.com/google-local-service-ads-with-fake-reviews-33810.html?ref=nearmedia.co), which Google [is expanding](https://twitter.com/lenraleigh/status/1550557036269780993?ref=nearmedia.co). One question that [occurred to me](https://twitter.com/gsterling/status/1550580703447752704?ref=nearmedia.co) about fake-review infected LSAs: Do the "Google Screened" and "Google Guaranteed" [badges](https://ads.google.com/local-services-ads/??ref=nearmedia.co) (designed to build consumer trust) create [potential FTC liability](https://www.nearmedia.co/ftc-notice-of-penalty-offenses-tells-700-national-advertisers-that-deceptive-endorsements-can-lead-to-financial-penalties/) because Google is "deceiving" the public by attaching the badges to profiles it knows include fake reviews? (There's also a [broader LSA spam](https://twitter.com/lenraleigh/status/1550557036269780993??ref=nearmedia.co) problem.)

![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2022/07/Screen-Shot-2022-07-25-at-7.16.32-AM.png)

**Our take:** 

- A study in the UK (focused on Amazon) [found](https://www.axios.com/2022/07/22/fake-reviews-online-shopping-overpay?ref=nearmedia.co) that people shown fake reviews were more likely to buy inferior products and pay more for them.
- Ordinarily, Section 230 of the Communications Decency Act shields platforms from liability for content (e.g., fake reviews). But ...
- Google's LSA trust badges suggest it vouches for the integrity of LSA profiles. That creates an FTC "consumer deception" problem.

### Paper Catalog Comeback 

Over the past two-plus years, the cost of digital advertising has [gone up](https://www.thedrum.com/opinion/2022/04/28/the-price-digital-ads-has-skyrocketed-here-s-how-counteract-it?ref=nearmedia.co) and returns [have declined](https://www.nearmedia.co/tech-privacy-headache/), according to [marketer surveys](https://www.nearmedia.co/traditional-media-gains/). That has caused some advertisers to take a [second look](https://www.nearmedia.co/traditional-media-gains/) at traditional media, including printed catalogs. Research presented in the Harvard Business Review [shows](https://hbr.org/2022/07/how-paper-catalogs-remain-relevant-in-a-digital-age?ref=nearmedia.co) that traditional product catalogs are (or have again become) highly effective marketing vehicles for retailers. But there are qualifications. The findings: 1) catalogs + email boosted purchases 24% over email only; 2) catalogs were more effective with customers who did more than 50% of their shopping in stores; 3) catalogs with images and short narratives were 40% more effective than those with just photos and product names; 4) catalogs with higher priced and "hedonic" products had a 120% higher ROI than those featuring "utilitarian" products. 

![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2022/07/micheile-dot-com-NuYB_I4wXFM-unsplash.jpg)

Source: [Unsplash](https://unsplash.com/s/photos/catalog?utm%5Fsource=unsplash&utm%5Fmedium=referral&utm%5Fcontent=creditCopyText)

**Our take:** 

- A 2022 [survey](https://www.nearmedia.co/apple-search-engine-cookie-relief-email-wins-again/) from DigitalCommerce360 found email was most influential in driving *online* sales; catalogs/direct mail was number two.
- For years digital and traditional media have worked together to extend each other's reach. This study is consistent with general, earlier findings.
- Another benefit of printed catalogs: they can provide a kind of "real-world presence" for online-only brands.

### Delivery Apps' Outlook Murky 

During the pandemic, delivery apps such as DoorDash, Instacart and Uber Eats were surging. Adoption, revenues and valuations grew dramatically. There were [ethics complaints](https://www.nearmedia.co/local-delivery-for-local-restaurants/) about driver treatment, wages and the [impact on local restaurants](https://www.nearmedia.co/local-delivery-for-local-restaurants/), but they still enjoyed massive gains. Now that people have returned to in-store shopping and dining – and especially because of inflation – food delivery is facing existential challenges. The [WSJ](https://www.wsj.com/articles/growth-cools-at-once-hot-food-delivery-apps-uber-eats-and-doordash-11658340167??ref=nearmedia.co) captures the moment: "Inflation has risen to a four-decade high ... making food delivery more expensive." Valuations have fallen "more than 50% in the past 12 months, compared with the less than 20% decline in the Nasdaq Composite Index." Most recently, DoorDash bought Bbot, which enables on-site digital ordering and payments and works with hotels as well as restaurants. Uber Eats has also [diversified](https://www.restaurantdive.com/news/uber-eats-deliveroo-look-to-diversify-with-click-and-collect/553717/?ref=nearmedia.co) delivery services. But there's a fundamental question about profitability and sustainability over the long term. 

![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2022/07/Screen-Shot-2022-07-25-at-9.55.33-AM.png)

Source: Unsplash

**Our take:** 

- E-commerce was also expected to grow indefinitely. The reopening of retail stores caused it [to slow and flatten](https://www.nearmedia.co/cooling-e-commerce-nextdoor-trust-smb-rents-up/) – similar to food delivery.
- Delivery apps will need to shift from convenience to broader utility. Novelty has worn off, fees are prohibitive, [quality](https://wgntv.com/news/wgn-news-now/delivery-drivers-admit-bad-behavior-in-poll/?ref=nearmedia.co) is also an issue.
- Absent more change, audiences and usage frequency will shrink (e.g., Whole Foods delivery [declined by 50%+](https://www.pymnts.com/amazon-delivery/2021/whole-foods-orders-drop-after-new-delivery-fee-report-says/?ref=nearmedia.co) since the $10 surcharge).

## Recent Analysis

- ****Near Memo episode 74:** [Amazon, Google pander to the FTC, Privacy Act opt-in/out battle, Instagram's new searchable map is promising](https://www.nearmedia.co/ep-74/).
- ICYMI: **A Look at Google Local Results without 'Self-Preferencing'** [by Mike Blumenthal](https://www.nearmedia.co/what-might-google-local-pack-look-like-if-there-were-no-self-preferencing/).

## Short Takes

- The [growing importance](https://ducttapemarketing.com/images-in-google-search/?ref=nearmedia.co) of **images in search.**
- **Suarespace** overhaul makes websites [even more DIY friendly](https://www.fastcompany.com/90771019/squarespace-radically-revamps-its-web-design-tools-for-the-first-time-in-10-years??ref=nearmedia.co).
- **Microsoft** [making display ad gains](https://www.searchenginejournal.com/is-google-losing-steam-in-the-ad-marketplace/458416/?ref=nearmedia.co#close) (at Google's expense?).
- **Google's SERP** increasingly [at center of abortion battle](https://www.mediapost.com/publications/article/375951/republican-ags-warn-google-against-curbing-links-t.html?ref=nearmedia.co).
- **Google Meet** calls can [now be livestreamed](https://www.androidcentral.com/apps-software/google-meet-livestream-youtube?ref=nearmedia.co) on YouTube.
- **American Data Privacy Act** [may get a vote](https://www.wired.com/story/american-data-privacy-protection-act-adppa/?ref=nearmedia.co), antitrust bills may not.
- FCC [takes on](https://www.techdirt.com/2022/07/25/fcc-to-finally-probe-u-s-wireless-abuse-of-customer-location-data/?ref=nearmedia.co) wireless carrier "**abuse of location**" (and other) data.
- **Streamers** stealing sports from broadcast, cable TV ([NYT](https://www.nytimes.com/2022/07/24/technology/sports-streaming-rights.html?ref=nearmedia.co)).
- **Netflix** [bypassing Apple 30% tariff ](https://www.theverge.com/2022/7/23/23275298/netflix-apple-external-sign-up-link-iphone-ipad-app-store?ref=nearmedia.co)with new external links.
- **TikTok** to[release of VR headsets](https://www.protocol.com/bulletins/pico-4vr-pro-headset-bytedance?ref=nearmedia.co) and compete with Meta.
- Behold: The **'TikTokization'** [of media](https://jonathanmendezblog.com/2022/07/18/the-tiktokization-of-media-understanding-who-we-are/?ref=nearmedia.co).
- Inside **Amazon's** controversial employee [performance review process](https://fortune.com/2022/07/22/amazon-new-performance-review-process-leaked-how-managers-measure-employee-worth-and-pay/?ref=nearmedia.co).
- Tracking [the ROI](https://streetfightmag.com/2022/07/25/cracking-the-code-measuring-roi-from-live-event-sponsorships/??ref=nearmedia.co) of **live (sporting) events**.
- Anti-Instagram app **BeReal** is [surging in popularity](https://www.latimes.com/business/technology/story/2022-07-23/bereal-the-anti-instagram-tops-the-app-charts?ref=nearmedia.co).
- **Apple** has [LTV/CAC ratio](https://www.ped30.com/2022/07/21/apple-erik-woodring-deep-dive/?ref=nearmedia.co) of 16x vs 5x industry standard.

Listen to our [latest podcast](https://www.nearmedia.co/memo/).

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