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# Google Trial, SMB AI Hopes, Yelp's Ad Revs Up
- URL: https://www.nearmedia.co/google-trial-smb-ai-hopes-yelps-cpcs-up/
- Published: 2023-08-09T18:34:53.000Z
- Updated: 2023-08-09T18:56:51.000Z
- Author: Greg Sterling
- Tags: News

### Google's Antitrust Trial Set

Earlier this week, a California judge [denied Google's summary judgment motion](https://www.theverge.com/2023/8/7/23823878/google-privacy-tracking-incognito-mode-lawsuit-summary-judgment-denied?ref=nearmedia.co) in the $5 billion Chrome "incognito" browser tracking lawsuit. This doesn't mean Google will be held liable at trial but it's a significant setback for the company. In a separate antitrust case, Google had both a setback and major victory. The DOJ and state attorneys general separately sued Google in 2020 (the cases were combined). Collectively they argue Google has a monopoly in consumer search and [digital advertising](https://www.justice.gov/opa/pr/justice-department-sues-google-monopolizing-digital-advertising-technologies?ref=nearmedia.co). There were also other claims, among them that Google favored its own content in SERPs (e.g., Local/Maps). Ruling on Google's summary judgment motion, federal judge Amit Mehta [eliminated a number of claims](https://www.wsj.com/articles/google-search-monopoly-antitrust-case-676d197b??ref=nearmedia.co) related to digital advertising and self-preferencing in a significant victory for the company. However those claims arguing that Google default search deals (worth billions) and pre-loaded Google apps on Android are anticompetitive will go to trial on September 12\. 

![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2023/08/sebastian-pichler-bAQH53VquTc-unsplash--1-.jpg)

Source: [Sebastian Pichler](https://unsplash.com/@pichler%5Fsebastian?utm%5Fsource=unsplash&utm%5Fmedium=referral&utm%5Fcontent=creditCopyText)/[Unsplash](https://unsplash.com/photos/bAQH53VquTc?utm%5Fsource=unsplash&utm%5Fmedium=referral&utm%5Fcontent=creditCopyText)

****Our take:**

- Consumers click (or zero-click) at least as much on Local Pack results as organic. Thus it does disadvantage competitors as a practical matter.
- Google will argue at trial that nobody is obliged to use its search engine and "competition is just a click away." In reality, the default search deals helped build and maintain Google's dominance and ad revenues.
- This is the biggest antitrust trial [since Microsoft in the late 1990s](https://en.wikipedia.org/wiki/United%5FStates%5Fv.%5FMicrosoft%5FCorp.?ref=nearmedia.co), which Microsoft settled to avoid a divestiture. Google's odds are 50-50\.

### SMBs Have High Hopes for AI

While most consumers in the US are [quite anxious](https://www.axios.com/2023/08/09/ai-voters-trust-government-regulation?ref=nearmedia.co) about AI, small businesses (SMBs) appear to be bullish about the technology. A new [survey](https://www.constantcontact.com/blog/small-business-now-report/??ref=nearmedia.co) from Constant Contact, conducted by Ascend2, trumpets the value of AI for SMBs. The headline is "91% of small businesses who are currently using AI say it has made their business more successful." However, "success" isn't defined and a closer look reveals that only 26% of respondents are actually using AI tools – that's 126 SMBs out of the 486 surveyed. Most of the survey is focused on time and cost savings from AI usage. About 90% of SMBs (113) using AI are saving an hour a week or less. Those same business expect to save $1K in the next year using AI/automation. Among those currently employing these tools, top use cases are social media (52%), content creation (44%) and email marketing (41%). Data security, cost and the learning curve are the biggest barriers to adoption according to the survey. 

![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2023/08/Screen-Shot-2023-08-09-at-11.16.53-AM.png)

Source: Constant Contact-Ascend2

****Our take:**

- Tools that are time and/or labor saving are especially useful to time-starved SMBs at the lower end of the headcount spectrum.
- Most AI exposure SMBs have is to ChatGPT/Bard or through their software vendors, which are integrating it (e.g., Constant Contact).
- AI/automation will be present in all SMB-SaaS tools. And while they can deliver efficiency and insights, they can't substitute for strategy.

### Yelp Success: More Clicks, Higher CPCs

Yelp has quietly been beating Wall Street Expectations for the past several quarters. Last week it [posted](https://www.yelp-ir.com/news/press-releases/news-release-details/2023/Yelps-Strong-Execution-Drove-Record-Net-Revenue-in-the-Second-Quarter-2023/default.aspx?ref=nearmedia.co) 13% YoY revenue growth, the same as in Q1 – also [beating expectations](https://finance.yahoo.com/news/yelp-yelp-beats-q1-earnings-224510538.html?ref=nearmedia.co). Revenue was $377 million, while income grew 84%. This was "the ninth consecutive quarter of double-digit growth." Yelp said that "self-serve and multi-location accounted for more than half" (51%) of ad revenue for the first time. Most of the growth is coming from higher revenue per location (increased prices/share of wallet) rather than advertiser numbers: "paying advertising locations were relatively flat, down 1%." CPCs grew 14% YoY and there were more more ad clicks. Growth came in the Services/Home Services, Restaurants and Retail categories. However Yelp said its request-a-quote submissions were down 10%, which it attributed to the economy. Yelp highlighted store visits attribution as a key to its multi-location ad growth. The company claims 6.3M "active local business" locations and 73M monthly users. Consumer traffic appears flat.

![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2023/08/Screen-Shot-2023-08-09-at-9.09.38-AM.png)

Source: Yelp investor presentation

****Our take:**

- 60% of revenue is coming from 10% of searches/views (services). Seeing Yelp as a home services platform, one investor is [advocating a merger with ANGI](https://www.nearmedia.co/google-ads-ai-everywhere-local-invisibility-yelp-angi/).
- Yelp's brand is strong in some categories (i.e., services, restaurants) but not in others (e.g., healthcare) and it heavily depends on Google SEO.
- The story is one of efficiency as Yelp extracts more money from existing customers; it's not really growing users or unique advertisers.

## Recent Analysis

- **How to Use Google's New 'Image Not Approved' Appeal Form**, [by Mike Blumenthal](https://www.nearmedia.co/gbp-adds-form-to-appeal-image-or-video-rejection/).
- ****Near Memo episode 122:** [New local ad format, updated GBP Guideline clarifies policies, Google SGE shows reference links](https://www.nearmedia.co/ep-122/).

## Short Takes

- Google [now showing more links](https://twitter.com/lilyraynyc/status/1689051737938857985?ref=nearmedia.co) in **SGE local results.**
- Google adds "[from Google" card](https://www.seroundtable.com/google-search-generative-experience-from-google-source-35823.html?ref=nearmedia.co) to **SGE AI carousels**.
- **Google:** [FAQ](https://developers.google.com/search/docs/appearance/structured-data/faqpage?ref=nearmedia.co) and How-To rich results [mostly going away](https://developers.google.com/search/blog/2023/08/howto-faq-changes?ref=nearmedia.co).
- **Moz** introduces new brand (not domain) authority [score](https://moz.com/blog/introducing-brand-authority?ref=nearmedia.co).
- Google publishes new **Responsive Search Ads** guide (.[pdf](https://services.google.com/fh/files/misc/responsive%5Fsearch%5Fads%5Fa%5Fguide%5Fto%5Fwriting%5Fads%5Fthat%5Fperform%5F2023.pdf?ref=nearmedia.co)).
- **Google** [wants robots.txt type approach](https://www.theguardian.com/technology/2023/aug/09/google-says-ai-systems-should-be-able-to-mine-publishers-work-unless-companies-opt-out?ref=nearmedia.co) to AI data mining.
- **Nextdoor** [announces](https://investors.nextdoor.com/news/news-details/2023/Nextdoor-Announces-Second-Quarter-2023-Results/default.aspx?ref=nearmedia.co) small gains in Q2: 42M weekly users (up 13%).
- Colgate [using gen-AI to optimize](https://www.digitalcommerce360.com/2023/08/04/colgate-pilots-generative-ai-tool-to-improve-product-detail-pages/?ref=nearmedia.co) 1K **product detail pages**.
- After [backlash](https://www.fastcompany.com/90934584/zoom-ai-training-terms-of-service-consent?ref=nearmedia.co), **Zoom** says it won't train AI without user consent.
- **DoorDash** [is winning](https://www.reuters.com/technology/doordash-lifts-core-profit-target-second-time-rising-orders-2023-08-02/?ref=nearmedia.co) the food delivery race in North America.
- In Europe, [personalized ads will mostly go away](https://newsroom.tiktok.com/en-eu/fulfilling-commitments-dsa-update?ref=nearmedia.co) on **TikTok**.
- **WeWork** [may not survive](https://techcrunch.com/2023/08/08/wework-goes-from-a-47b-valuation-to-subtantial-doubts-about-its-ability-to-continue-as-a-going-concern/??ref=nearmedia.co) another year.
- **SMBs** were responsible for [73% of July job gains](https://www.reuters.com/markets/us/us-private-payrolls-beat-expectations-july-adp-says-2023-08-02/?ref=nearmedia.co).
- **SMB outlook** improves ([except VSBs](https://bredin.com/blog/2023/08/bredin-report-smb-outlook/?ref=nearmedia.co)), but [hiring still tough](https://www.cnn.com/2023/08/08/economy/nfib-july-optimism-index/index.html?ref=nearmedia.co).

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