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Will AI totally destroy the review economy? What will replace reviews?
The appearance of AI-generated reviews on Amazon has significant implications for the future of reviews and will aid in increasing the scale of an already serious problem. While Google has attempted to combat this somewhat with critic reviews,  the decimation of local news will make it challenging to highlight authoritative reviewers for restaurants and other businesses. Reviews will remain relevant for low consideration purchases in categories where they can be trusted but will likely decline in overall importance in the local ecosystem

 Does declining Google Business listing totals reflect “peak” GBP?
Google's annual economic impact report revealed that the number of businesses with claimed Google Business profiles dropped from 20.2 million in 2021 to 18.7 million in 2022, leading to a few theories including Google having reached “peak” SMB and Google's crackdown on spammy profiles and the erosion of consumer search behavior. However, the U.S Census Bureau reported an increase in new business formations in the same period. The discrepancy in the numbers highlights the difficulty in identifying an addressable market for small businesses.

 As social media fueled news sites fail opportunity abounds for sites willing to build own audience:
The decline of Facebook's promotion of news and external links has led to the failure of news businesses that relied solely on the social media platform, such as BuzzFeed, Insider, and Vice. This shift in social media highlights the importance of owning one's presence and building a loyal audience through channels such as email newsletters, which offer opportunities for ad revenue and sponsored content. Local news and businesses should embrace this new reality and adapt their efforts accordingly to avoid vulnerability to the changing social media landscape. Local media brands still possess a trust factor that presents certain opportunities to be exploited despite limited resources.

The Near Memo is a weekly conversation about Search, Social, and Commerce: What happened, why it matters, and the implications for local businesses and national brands.
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