Local Memo: Yelp Releases Its State of Services 2024

In this week’s update, we discuss Yelp’s State of Services 2024 report, Google’s new features for AI-powered ad campaigns, Google’s new policy to address fake reviews, and an update to Google’s local photos.

Yelp Releases Its State of Services 2024 

The News

Yelp’s annual report on the state of services shows that the home services industry is poised to break new records in 2024, outpacing all other categories. The report reveals that home services grew by 11% compared to 2023, with 217,000 new business openings, driven by increased demand for home upgrades, weatherproofing, and pet services. As Americans face rising housing costs, renters are opting for renter-friendly home improvements, while homeowners seek weatherproofing solutions to combat extreme weather events.

States like South Dakota, Arkansas, and Vermont saw the largest percentage growth in home services, with mid-sized cities like Cincinnati and Kansas City leading metro area growth. Yelp’s data also highlights pet services, which have expanded alongside rising dog ownership, and weatherproofing services as climate events become more frequent. Entrepreneurs are capitalizing on these trends, with new businesses offering HVAC, generator installation, and waterproofing services, preparing households for the ongoing climate crisis.

Why This Matters 

For marketers in high-demand industries like home services and pet care, this report is crucial. It provides valuable insights into consumer behavior and emerging trends that can help businesses stay ahead of the curve. Marketers should ensure their local marketing strategies are up to par to attract local customers, focusing on visibility and engagement in these rapidly growing sectors. Leveraging this data can help businesses connect with consumers actively seeking these services.

Google Announces New Features for AI-Powered Ad Campaigns 

The News

At DMEXCO, Google unveiled new AI-driven innovations aimed at improving ad campaign performance and return on investment (ROI) for businesses. Google Search campaigns, now powered by Gemini models, will expand to German, French, and Spanish to help brands better connect with consumers globally. Additionally, Google introduced more creative tools like AI-powered image editing for Search, Display, and App campaigns, making it easier for advertisers to customize and optimize their visuals. Demand Gen campaigns, which focus on discovery through visual storytelling, have also been enhanced, allowing businesses to diversify their strategies across different channels.

Google also emphasized giving advertisers more control over AI-generated creative assets. New features allow advertisers to input brand-specific guidelines and refine AI outputs to better align with their identity. Improvements in performance insights and creative reporting will help businesses optimize their ads, with new metrics and reporting tools for Performance Max campaigns. 

Why This Matters 

For digital marketers, these new tools and insights represent significant advancements in AI-powered advertising. As consumer journeys become more complex and fragmented, these features allow marketers to deliver personalized, high-impact campaigns while maintaining greater control over the creative and targeting process. Ensuring brand consistency and optimizing campaigns for performance are key to staying competitive, and Google’s AI innovations can significantly enhance marketers’ ability to drive ROI.

Google Introduces New Policy on Reviews 

The News 

Google has recently intensified its efforts to combat fake reviews by updating its Business Profile guidelines and introducing new penalties for businesses involved in “fake engagement.” These actions aim to reduce the widespread issue of falsified reviews that mislead consumers. The penalties include temporary suspension of new reviews, hiding existing ones, and displaying warning banners that alert potential customers of fake reviews. However, some experts question whether these measures will be effective, especially given Google’s inconsistent enforcement of review policies in the past.

Courtesy Mike Blumenthal

A significant concern is the potential for false positives, where genuine businesses could be unfairly penalized. Competitors may also exploit this by flooding rivals with fake positive reviews, complicating the review process even further. Businesses are encouraged to monitor and report suspicious activity immediately, but many remain skeptical of Google’s appeals process, which is often slow and difficult to navigate. Some businesses have even turned to shady reputation management services for help, further complicating the problem.

Why This Matters

As marketers, you understand the importance of reviews. This shift is crucial because reviews play a pivotal role in customer decision-making. Maintaining a clean, authentic online reputation is more important than ever, and marketers must be vigilant about monitoring reviews and responding to potential violations. Google’s crackdown on fake reviews means that businesses can no longer rely on questionable reputation tactics, reinforcing the need for transparency and authenticity in digital marketing strategies.

Google Shares Reviews and Menu Descriptions Under Local Photos 

The News

Google has introduced a new feature on Google Maps and Business Profiles that displays reviews and menu descriptions when browsing through photos. This update enhances the browsing experience by providing users with additional context, such as customer feedback and details about menu items, directly beneath the photos. The feature was first noticed by Claudia Tomina, who shared a video showcasing it in action.

Browsing photos now links to a menu item, shows price and description if available and provides related reviews and other related photos. #googlemaps pic.twitter.com/WH6lQogBmY

— ClaudiaT (@ClaudiaTomina) September 19, 2024

This new integration of reviews and menu descriptions with local photos allows potential customers to gather more information quickly, helping them make informed decisions about visiting a business. By combining visual content with text, Google aims to make it easier for users to assess businesses without having to click through multiple pages or sections.

Why This Matters

This feature is for marketers essential as it highlights the importance of maintaining up-to-date and positive reviews on Google Business Profiles. High-quality photos combined with favorable reviews can significantly influence consumer behavior, making it critical for businesses to optimize their listings with appealing visuals and accurate descriptions to attract local customers.