> ## Content Index > Fetch the complete content index at: https://www.nearmedia.co/llms.txt > Use this file to discover other available public pages before exploring further. # Review Extortion, Algorithm Blues, Spend More for ROI - URL: https://www.nearmedia.co/review-extortion-algorithm-blues-spend-for-roi/ - Published: 2022-07-08T20:46:16.000Z - Updated: 2022-07-08T20:46:16.000Z - Author: Greg Sterling - Tags: News ### Review Extortion, Libel & Liability Review fraud is illegal and [it's flourishing](https://www.mediapost.com/publications/article/368189/google-found-to-have-highest-number-of-fake-review.html??ref=nearmedia.co). Despite [rising awareness](https://searchengineland.com/consumers-more-invested-in-reviews-but-also-more-skeptical-of-authenticity-survey-326299?ref=nearmedia.co) of fake reviews, [usage is up](https://www.nearmedia.co/consumer-trust-in-reviews/). An undisputed ranking signal, reviews are also [a top conversion factor](https://whitespark.ca/google-business-profile-guide/conversion-factors/?ref=nearmedia.co). Because of that there's continuing fraud and other review manipulation. A recent example: a [current scam](https://sf.eater.com/2022/7/7/23198900/google-review-restaurant-scam?ref=nearmedia.co) in the SF Bay Area involves fraudsters leaving one-star restaurant reviews and demanding gift card payments to prevent more. (Spam fighting must become a feature of every reputation management platform.) Big platforms aren't liable for review fraud (in the US); similarly online reviews have generally been a liability free zone for consumers – but not always. In a review-based defamation case, the Oregon Supreme Court [affirmed](https://www.oregonlive.com/business/2022/07/online-reviewers-in-oregon-on-notice-supreme-court-declines-to-offer-ordinary-people-higher-media-protection-from-libel-suits.html??ref=nearmedia.co) that ordinary people are entitled to less protection than journalists (re factual assertions). And in a review-adjacent [spat over the purchase of 75 beehives](https://www.seattletimes.com/nation-world/venting-on-facebook-costs-angry-minnesota-beekeeper-370000/?ref=nearmedia.co), the aggrieved buyer vented on Facebook against the seller, who sued for defamation – and won $370K. ![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2022/07/dave-hoefler-MrxlMcZxqhY-unsplash.jpg) Source: [Dave Hoefler](https://unsplash.com/@davehoefler?utm%5Fsource=unsplash&utm%5Fmedium=referral&utm%5Fcontent=creditCopyText)/[Unsplash](https://unsplash.com/s/photos/house-on-fire?utm%5Fsource=unsplash&utm%5Fmedium=referral&utm%5Fcontent=creditCopyText) **Our take:** - Reviews and social media content moderation will continue to be a battleground, but most review content (opinions) is protected speech. - [Section 230](https://www.eff.org/issues/cda230?ref=nearmedia.co) shields platforms from liability in the US. There are efforts to [repeal or modify it](https://www.justice.gov/archives/ag/department-justice-s-review-section-230-communications-decency-act-1996?ref=nearmedia.co), to promote stronger content moderation. - As discussed in Near Memo 72, the EU's [DSA](https://ec.europa.eu/commission/presscorner/detail/en/QANDA%5F20%5F2348?ref=nearmedia.co) probably compels more aggressive review policing, which might then come to North America. ### It's the Algorithm After a TikTok "blackout challenge" led to the deaths of two young girls the social media site is being [hit with a lawsuit](https://www.nytimes.com/2022/07/06/technology/tiktok-blackout-challenge-deaths.html?ref=nearmedia.co) alleging it "knew or should have known" its product was "addictive" and that its algorithm directed kids to the harmful content. TikTok denies liability. Separately, a [pending California bill](https://apnews.com/article/technology-california-government-and-politics-netflix-inc-f48601e13be547bf8b86aff42eed5124?ref=nearmedia.co) would allow parents to sue for "social media addiction" and related ills. A case now being appealed to SCOTUS similarly [argues](https://www.mediapost.com/publications/article/375426/google-urges-supreme-court-to-reject-case-over-isi.html?ref=nearmedia.co) that YouTube's alleged promotion of terrorist videos contributed to the death of an American student in Paris, who was killed in a terrorist attack. Previously, Facebook whistleblower Frances Haugen [stated](https://www.cbsnews.com/news/facebook-whistleblower-frances-haugen-60-minutes-polarizing-divisive-content/?ref=nearmedia.co) the company's algorithm promotes disinformation, hate speech and even violence because that's what generates engagement. Thus Facebook has [resisted correcting the problem](https://www.technologyreview.com/2021/10/05/1036519/facebook-whistleblower-frances-haugen-algorithms/?ref=nearmedia.co). Indeed, most of the social and political problems laid at the doorstep of social media are tied to algorithms. ![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2022/07/markus-spiske-iar-afB0QQw-unsplash.jpg) Source: [Markus Spiske](https://unsplash.com/@markusspiske?utm%5Fsource=unsplash&utm%5Fmedium=referral&utm%5Fcontent=creditCopyText)/[Unsplash](https://unsplash.com/s/photos/algorithm?utm%5Fsource=unsplash&utm%5Fmedium=referral&utm%5Fcontent=creditCopyText) **Our take:** - Social media algorithms are primary IP and have driven usage growth. But they're also the focus of lawsuits and legislative complaints. - The DSA in Europe calls for algorithm transparency and requires tools to enable consumers to disable algorithmic feeds. - One potential solution is to do the same in the US: let people turn off the algorithm, give them access to a chronological feed [as Instagram did](https://about.instagram.com/blog/announcements/favorites-and-following?ref=nearmedia.co). ### Want More ROI, Spend More The cost of digital media [has gone way up](https://www.thedrum.com/opinion/2022/04/28/the-price-digital-ads-has-skyrocketed-here-s-how-counteract-it?ref=nearmedia.co). Accordingly, more marketers are expressing [frustration with digital media ROI](https://www.nearmedia.co/traditional-media-gains/). Indeed, some DTC brands have opened stores in response to the rising cost of online customer acquisition. Now comes a Nielsen [report](https://global.nielsen.com/insights/2022/roi-report/?ref=nearmedia.co) that argues marketers need to be willing to spend more to drive greater ROI. The company says that "globally, the average brand reinvests 3.8% of its revenues into advertising," but that's often too low. Nielsen argues, while there is some overspending underinvestment is a bigger problem: "We found that 50% of planned media channel investments were too low to achieve maximum ROI. The median underinvestment level was 52%." On the bright side, "North America has the highest ROI levels of any of the regions we studied—despite 57% of plans showing underinvestment." ![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2022/07/Screen-Shot-2022-07-08-at-1.26.46-PM.png) Source: Nielsen **Our take:** - Digital display ads, social and TV were cited as the best channels for "full funnel" effectiveness (chart above). - Campaigns that optimized reach consistently delivered a higher ROI. And new channels (e.g., podcast ads) often delivered strong ROI. - One of the key areas of ROI opportunity is local. Most multi-location brands are still significantly underinvested in local. ## Recent Analysis - ****Near Memo episode 71**: [Entities not keywords are key to search, Google Offers shows company's playbook, Data privacy becoming more critical](https://www.nearmedia.co/ep-71/). ## Short Takes - **Google auto-tagging** now [available for all free local listings](https://support.google.com/merchants/answer/12123358?hl=en&ref=nearmedia.co). - GeoGuessr: Game involving **Google Street View** is taking off ([NYT](https://www.nytimes.com/2022/07/07/business/geoguessr-google-maps.html?ref=nearmedia.co)). - **GenZ** [not dining out](https://thetakeout.com/why-gen-z-stopped-going-to-restaurants-1849152901?ref=nearmedia.co); things will need to change to attract them. - **Amazon Prim** **ers** to [get one year](https://www.justeattakeaway.com/newsroom/en-WW/216251-just-eat-takeaway-com-and-amazon-enter-into-commercial-agreement-in-the-us?ref=nearmedia.co) of free **Grubhub** **\+** membership. - **Walmart** [won't go up against Amazon](https://www.cnbc.com/2022/07/07/walmart-wont-hold-rival-event-to-amazon-prime-day.html?ref=nearmedia.co) Prime Day this year. - Meta [untethers](https://www.theverge.com/2022/7/7/23198208/meta-quest-vr-headset-facebook-login-requirement??ref=nearmedia.co) **VR hardware** from Facebook account requirement. - **Twitter**: We remove [over 1 million spam accounts](https://www.reuters.com/technology/twitter-says-it-removes-over-1-million-spam-accounts-each-day-2022-07-07/?ref=nearmedia.co) each day. - **Apple's** new "[lockdown mode](https://www.apple.com/newsroom/2022/07/apple-expands-commitment-to-protect-users-from-mercenary-spyware/?ref=nearmedia.co)" will help block government spyware. - Immigration agency (ICE) now [doing](https://americandragnet.org/?ref=nearmedia.co) **mass gov't surveillance**. - Europe [may block](https://www.politico.eu/article/europe-faces-facebook-blackout-instagram-meta-data-protection/??ref=nearmedia.co) tech cos from **sending data back to US**. - **Google** offers DOJ concessions to relieve antitrust pressure ([WSJ](https://www.wsj.com/articles/google-offers-concessions-to-fend-off-u-s-antitrust-lawsuit-11657296591?ref=nearmedia.co)). - **Tech layoff tracking** site ([layoffs.fyi](https://layoffs.fyi/?ref=nearmedia.co)) becomes [a recruiting tool](https://www.axios.com/2022/07/07/sign-of-the-times-recruiters-are-checking-a-layoffs-site-to-find-workers?ref=nearmedia.co). - Will "**AI content**" solve the [multi-location content scale challenge](https://streetfightmag.com/2022/07/08/3-ways-content-automation-can-help-multi-location-marketers/??ref=nearmedia.co)? - **TikTok** [Follow Me](https://followmegrowwithtiktok.splashthat.com/?ref=nearmedia.co): 6-week program to help SMBs succeed on platform. Listen to our [latest podcast](https://www.nearmedia.co/memo/). [![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2021/02/near_memo_banner.png)](https://nearmedia.co/memo?ref=nearmedia.co) How can we make this better? Email [us](mailto:gsterling@nearmedia.co) with suggestions and recommendations.