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# Missing Local Packs, Correction or Shakeout, Twitter 'Hellscape'
- URL: https://www.nearmedia.co/local-pack-decline-q3-earnings-twitter-hellscape/
- Published: 2022-10-28T18:25:35.000Z
- Updated: 2022-10-28T19:45:19.000Z
- Author: Greg Sterling
- Tags: News

### Google Local Pack Decline

There's evidence that Google is reducing the frequency of Local Packs. Barry Schwartz has [compiled data](https://www.seroundtable.com/google-local-pack-decrease-34319.html?ref=nearmedia.co) from Moz, Rank Ranger and Semrush that show a decline in the appearance of Local Packs in SERPs. Moz [shows](https://moz.com/mozcast?ref=nearmedia.co#:~:text=24.3%25-,Local%20Packs,-24.3%25) the biggest decline from 40% to \~25% of queries. The others are more stable and BrightLocal hasn't detected any changes. There are other, [anecdotal observations](https://twitter.com/JoyanneHawkins/status/1585408856720822272?ref=nearmedia.co) of Local Packs not being triggered as they have been in the past. Moz's Dr. Pete Myers also [observed](https://twitter.com/dr%5Fpete/status/1585011516985978880?ref=nearmedia.co) other SERP features showing less often: "Image results, Video carousels, Twitter carousels, and Top Stories." In parallel, Google has rolled out an [awkward and unpopular](https://twitter.com/miriam%5Fellis%5F/status/1586007682175029249?s=43&t=dsxZoZFkg0g7Hozt6-pQOg&ref=nearmedia.co) new UI for in-SERP editing of GBP details for SMBs and non-enterprise customers. It's not confirmed that Local Packs are showing less often. But why might it be the case? 

![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2022/10/Screen-Shot-2022-10-28-at-10.51.39-AM.png)

Source: Mozcast

**Our take:** 

- The reduction in SERP-feature frequency, including Local Packs, may be Google's attempt to address antitrust "self-preferencing" claims.
- Semrush, [in its recent study](https://www.nearmedia.co/zero-click-revision-youtube-ads-decline-twitter-wipeout/), found a much lower rate of "zero-click" searches (25%) than previous studies from SparkToro (65%).
- The move to reduce Local Packs is surprising against the backdrop of Google's emphasis on local at recent search events (e.g., [Search On](https://www.nearmedia.co/multisearch-near-me-smb-saas-triggers-speechpocalypse/)).

### Q3: Temporary Correction or Shakeout? 

The US is [not in recession](https://www.bea.gov/data/gdp/gross-domestic-product?ref=nearmedia.co). But investors and advertisers are acting like it is, with many pulling back because of fear or caution. That showed up in weaker-than-expected results this week from Google and Meta. Investors punished both [but especially Meta](https://www.cnbc.com/2022/10/27/meta-stock-falls-23percent-on-earnings-miss-analyst-downgrades.html?ref=nearmedia.co), whose revenue [was down](https://s21.q4cdn.com/399680738/files/doc%5Ffinancials/2022/q3/Meta-09.30.2022-Exhibit-99.1-FINAL.pdf?ref=nearmedia.co) 4% YoY and net income off a whopping 52%. Yet the company [continues](https://www.theverge.com/2022/10/26/23425429/meta-qg-2022-earnings-facebook-metaverse-mark-zuckerberg?ref=nearmedia.co) with unabated spending on the Metaverse. Conversely [Apple](https://www.axios.com/2022/10/27/apple-quarterly-earnings-ipad-iphone?ref=nearmedia.co), Microsoft and [Spotify](https://news.shopify.com/shopify-reports-third-quarter-2022-financial-results?ref=nearmedia.co) beat expectations. But there was [softness](https://www.cnbc.com/2022/10/27/apple-aapl-earnings-q4-2022.html?ref=nearmedia.co) in Apple's record quarter (i.e., iPhone) and Microsoft [was cautious](https://www.cnbc.com/2022/10/25/microsoft-msft-earnings-q1-2023.html?ref=nearmedia.co) in its outlook. Q4 will likely see a return to growth for most of the big companies, with the exceptions of Meta and Snap. Google should also see stronger ad-revenue growth; the question is how much amid intensifying competition. And while Amazon reported weaker-than-expected Q3 [revenues](https://ir.aboutamazon.com/news-release/news-release-details/2022/Amazon.com-Announces-Third-Quarter-Results/default.aspx?ref=nearmedia.co), ad revenue was up 25%. The company also [announced](https://www.insiderintelligence.com/content/amazon-takes-on-google-with-new-ad-features??ref=nearmedia.co) new ad formats. 

![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2022/10/image-5.png)

Source: Stable Diffusion

**Our take:** 

- Amazon's advertising ARR is now \~$40B. That compares with $115B for Meta and Google's $209B in 2021\. Apple [is expanding](https://streetfightmag.com/2022/10/26/apples-search-ad-business-triples-in-market-share/?ref=nearmedia.co) its ads programs.
- Investors care about growth outlook most. That will be hard for Meta and Snap. Paid search *should* benefit from holiday retail ad-spending.
- Meta is [no longer](https://www.cnbc.com/2022/10/27/meta-is-no-longer-one-of-the-20-biggest-us-companies.html?ref=nearmedia.co) one of US's 20 biggest companies. Zuckerberg appears to have lost interest in the core business. But the metaverse won't save Meta.

### Ads, EU May Prevent Twitter 'Hellscape'

Elon Musk now owns Twitter. He has already [fired](https://www.axios.com/2022/10/28/elon-musk-twitter-ceo-parag-agrawal?ref=nearmedia.co) most of the c-suite, save Chief Customer Officer Sarah Personette. Soon "mass layoffs" will [reduce Twitter headcount](https://www.cnbc.com/2022/10/28/departing-twitter-employees-say-layoffs-have-started-as-elon-musk-takes-over.html?ref=nearmedia.co) by at least 1K, [if not by thousands](https://www.nearmedia.co/zero-click-revision-youtube-ads-decline-twitter-wipeout/). (Hundreds [already left](https://nypost.com/2022/10/26/google-meta-poach-twitter-employees-put-off-by-elon-musk/?ref=nearmedia.co) for other tech companies.) Yesterday Musk sought to [reassure advertisers](https://twitter.com/elonmusk/status/1585619322239561728?ref=nearmedia.co), concerned about the relaxation of content moderation. He promised that Twitter won't become a "free-for-all Hellscape." However, Trump is likely to be "unbanned," which will serve as a gesture to the right and symbol of Musk's "commitment to speech." But according to the [WSJ](https://www.wsj.com/articles/elon-musk-will-face-an-early-twitter-challenge-preventing-advertiser-flight-11666871828?ref=nearmedia.co), many large advertisers have said that they will withdraw if Trump comes back. Regardless, the toxic Hellscape many fear probably won't come to pass for two reasons: advertiser outcry and the [EU's Digital Services Act](https://www.politico.eu/article/eu-commissioner-to-musk-twitter-will-play-by-our-rules/?ref=nearmedia.co), which prohibits "illegal content," including disinformation and hate speech. 

![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2022/10/Screen-Shot-2022-10-28-at-8.30.44-AM.png)

**Our take:** 

- 90% of Twitter revenue is from ads. Advertisers will flee if content moderation is substantially degraded or eliminated.
- Musk won't be able to replace ad revenue with subscriptions. Perhaps reduced headcount, commerce and subscriptions will ease ad-dependence however.
- DSA can fine 6% of revs ($300 million for Twitter). Musk [won't maintain separate content](https://fortune.com/2022/05/11/elon-musk-twitter-europe-digital-services-act-free-speech-breton/?ref=nearmedia.co) for EU and ROW. He'll have to play by EU rules.

## Short Takes

- **Yelp-Mailchimp** [deal](https://blog.yelp.com/news/yelp-fusion-brings-yelps-trusted-content-to-mailchimp-users-and-platforms-across-real-estate-travel-and-more/?ref=nearmedia.co) will put Yelp content in email campaigns.
- **Google** [algorithm changes](https://digiday.com/media/some-publishers-re-shift-commerce-strategies-after-google-releases-flurry-of-algorithm-updates/?ref=nearmedia.co) cause "chaos" for publishers.
- **Google** [buys](https://techcrunch.com/2022/10/27/google-acquires-twitter-backed-ai-avatar-startup-alter-for-100-million-source-says/?ref=nearmedia.co) AI avatar site Alter for \~$100 million.
- Like Netflix, **TikTok** is [getting into gaming](https://www.pymnts.com/connectedeconomy/2022/tiktok-moves-beyond-video-new-gaming-feature/?ref=nearmedia.co).
- **Uber** introduces geo-targeted ads based on destination ([WSJ](https://www.wsj.com/articles/uber-to-let-marketers-target-riders-by-destination-11666184402?ref=nearmedia.co)).
- **Teen survey**: [87% own an iPhone](https://www.pipersandler.com/1col.aspx?id=6216&ref=nearmedia.co), TikTok #1 social media platform.
- New **YouTube UI** [borrows](https://twitter.com/kevin%5Findig/status/1585288898472820736??ref=nearmedia.co) a lot from TikTok.
- **Instagram** [now has 2B users](https://www.bloomberg.com/news/articles/2022-10-26/meta-s-instagram-users-reach-2-billion-closing-in-on-facebook?ref=nearmedia.co#xj4y7vzkg), soon more valuable than Facebook.
- **Meta** fined $25M for repeatedly [violating state campaign finance laws](https://www.seattletimes.com/seattle-news/politics/facebook-parent-company-fined-25m-for-wa-campaign-finance-violations/?ref=nearmedia.co).
- If **Kroger-Albertsons** happens, it [will impact 67% of US shoppers](https://www.numerator.com/resources/blog/kroger-albertsons-merger-implications-consumers-and-future-retail?ref=nearmedia.co).
- **Department store foot traffic** varies by segment [but is recovering](https://www.placer.ai/blog/holidays-on-the-horizon-mid-range-and-luxury-shopping/?ref=nearmedia.co).
- **Click and collect/BOPIS** grows while [curbside pickup declines](https://streetfightmag.com/2022/10/24/report-bopis-use-soars-while-demand-for-curbside-pickup-declines/?ref=nearmedia.co).
- Republicans sue to get **fundraising spam** into your [inbox](https://www.techdirt.com/2022/10/24/republicans-sue-google-to-try-to-force-spam-into-your-inbox/?ref=nearmedia.co).
- **Spyware apps** [capturing calls and location data](https://techcrunch.com/2022/10/26/inside-thetruthspy-stalkerware/?ref=nearmedia.co) on Android devices.

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