Local Memo: Facebook Launches Local Tab as Part of App Redesign

In this week’s update, learn about Facebook’s new local tab; new recommendations that may lead to the breakup of Google; and some recent updates to Google Business Profiles. 

Facebook Launches Local Tab as Part of App Redesign

The News

Facebook has launched an app redesign and several updates described by Social Media Today as a “youth-focused refresh.” The move appears to be in response to a rise in Facebook usage amongst young adults, driven by Meta’s success with AI-suggested content and Reels content in particular, where viewership is up 20%. 

Facebook’s app updates continue the trend of curated content with the addition of Local and Explore tabs, which will bring together content from Marketplace, Groups, Reels, and Events. The Local tab focuses, as the name implies, on content from these sources posted in your area, and promises to create a user experience something like a Facebook equivalent to Nextdoor, though with more of an image-oriented look and feel. The Explore tab will curate content based not on vicinity but on a user’s interests.

Facebook is also launching a new Video tab that will show Reels content in a full-screen format, an interface that closely resembles TikTok. Meta notes that “young adults on Facebook spend almost 60% of their time on the app watching videos.”

The Local tab, which Meta suggests can be used to discover recommendations of local businesses among other things, will be launched initially in several U.S. cities including Austin, New York, and Los Angeles before rolling out more broadly.

Facebook’s Local tab, courtesy Meta / Social Media Today

What This Means

This is perhaps Meta’s boldest move so far to bring the TikTok audience back to Facebook, and doubles down on Meta’s imitation of the TikTok model that suggests engaging content outside of one’s immediate network. But Meta is also adding its own angle, one that surfaces local connections more explicitly than TikTok has yet done. We’ve observed in our own research that younger consumers are turning to social media in greater numbers for local search and recommendations; Meta is clearly aware of this and looking to capitalize on the trend.

DOJ Considers Google Breakup as Remedy for Monopoly Ruling

The News

Following the ruling several weeks ago that Google was acting as an illegal monopoly in its search business, the Department of Justice issued a set of recommendations this week that indicate how severe the penalties against the company might be, when these are finally issued sometime next year. The DOJ recommendations suggest that Google might be forced to divest both Chrome and Android and to share data with competitors related to search indexing, AI technology, and ad ranking. Though these recommendations are not binding, they do suggest that the government may seek penalties that would radically alter the nature of Google as a company.

In a response, Google objected that the lawsuit had initially focused on the company’s search contracts with companies like Apple and is now expanding unfairly to other aspects of its business. 

Also this week, a judge issued penalties in another case, Epic v. Google, which charged that Google engaged in unfair practices by preventing competition with its Google Play Store. Pending appeal, the company will be forced to allow other apps to act as app stores in the Android ecosystem. 

What This Means

Antitrust activities follow a long, slow trajectory, and their eventual outcome is difficult to predict; but the writing seems to be on the wall that Google will be forced to at least negotiate a position with the U.S. government that allows greater space for competition. Google’s response to this week’s DOJ recommendations allege that they come “at a time when competition in how people find information is blooming, with all sorts of new entrants emerging and new technologies like AI transforming the industry.” Whether or not these new entrants undermine the case against Google as a monopoly, they are certainly poised to benefit from any actions that hurt Google.

A Roundup of Google Business Profile News

The News

Google has added a drag-and-drop feature to the menus in Google Business Profiles, making it easier for restaurants to reorganize menu content. Google has been adding menu features fairly regularly in recent months, including the ability to create a digital menu from an image or PDF or to import menu items from your website.

New research from Sterling Sky looks at whether the use of unique photo content helps businesses outrank those who use stock photos. In a test, Sterling Sky found that there was actually no ranking benefit in the use of unique photos. However, the report points out that Google favors relevant photos, and research from Near Media demonstrates that users react negatively to stock photo content. 

Finally, we recently reported that Google has issued new regulations suggesting they will penalize businesses that publish fake reviews. Phil Rozek has a writeup about these regulations which includes a screenshot, originally posted by Mike Blumenthal, of what the new fake review flag looks like in a business profile. Rozek notes that businesses caught for publishing fake reviews can be prevented from receiving any new reviews, in addition to having suspected fake reviews taken down and the flag applied to their profile. 

Courtesy Mike Blumenthal

What This Means

Taken together, these updates remind us that Google recognizes the value of relevant, authentic content such as menus, photos, and reviews. Whether it comes in the relatively innocuous form of stock photos or the more egregious form of fake reviews, inauthentic content is unlikely to be helpful to a business in the long term, and may backfire to the business’s detriment.