Only 11% of US businesses fully meet California Consumer Privacy Act (CCPA) requirements, according to a new study. This is actually higher than the 6% fully compliant with the EU’s General Data Protection Regulation (GDPR).
The rest of the companies are either non-compliant (44%) or partially compliant (45%) with these privacy protection laws, according to research from CYTRIO, a data privacy compliance company. The EU and California laws require companies to provide people with a way to exercise their rights, something 44% of the 5,175 businesses surveyed failed to do. A company was judged somewhat compliant if it used manual processes – email, web forms – for handling data requests.
More than 50% of companies fail to comply with these laws despite stating on their websites that they need to do so.
While B2C companies collect more consumer data, their compliance rate is essentially the same as B2B companies (11.3% for B2C vs. 10.3% for B2B).
The most compliant business sectors are Media & Internet (30%) and Consumer Services (25%). The least: Healthcare Services (0%) and Education (8%).
Only 15% of California companies are compliant. New Hampshire does best in the state rankings with 24%. Alaska, Arkansas, Idaho, Montana, New Mexico, South Dakota and West Virginia all had 0%.
Why we care. GDPR can levy fines of up to 4% of annual revenue and they mean it: Google, British Airways, H&M and Marriott are among the companies hit with fines of $10 million or more. The CCPA can charge up to $7,500 per record for each intentional violation. That’s just direct fiscal cost. Brand reputational damage is likely to be much higher. Consumers have been very forgiving about data being stolen. This won’t be the case if a company has been misusing it on purpose.
Get the daily newsletter digital marketers rely on.
About The Author
Constantine von Hoffman is managing editor of MarTech. A veteran journalist, Con has covered business, finance, marketing and tech for CBSNews.com, Brandweek, CMO, and Inc. He has been city editor of the Boston Herald, news producer at NPR, and has written for Harvard Business Review, Boston Magazine, Sierra, and many other publications. He has also been a professional stand-up comedian, given talks at anime and gaming conventions on everything from My Neighbor Totoro to the history of dice and boardgames, and is author of the magical realist novel John Henry the Revelator. He lives in Boston with his wife, Jennifer, and either too many or too few dogs.
Today, I’m doing a quick follow-up to the manual portion of our earlier study in an effort to quantify and illustrate this abrupt alteration.
A total sea change in local pack headers
Between July and November of 2022, 83% of our previously-queried local pack headers underwent a complete transformation of nomenclature. Only 17% of the local pack headers were still worded the same way in autumn as they had been in the summertime. Here is a small set of examples:
In our manual analysis of 60 queries in July, we encountered 40 unique local pack headers – a tremendous variety. Now, all specificity is gone. For all of our queries, headings have been reduced to just 3 types: in-store availability, places, and businesses.
Entity relationships remain mysterious
What hasn’t changed is my sense that the logic underpinning which businesses receive which local pack header remains rather odd. In the original study, we noted the mystery of why a query like “karate” fell under the heading of “martial arts school” but a query for “tai chi” got a unique “tai chi heading”, or why “adopt dog” results were headed “animal rescue services” but “adopt bunny” got a pack labeled “adopt bunny”. The curious entity relationships continue on, even in this new, genericized local pack header scenario. For example, why is my search for “tacos” (which formerly brought up a pack labeled “Mexican restaurants”, now labeled this:
But my search for “oil change” gets this header:
Is there something about a Mexican restaurant that makes it more of a “place” and an oil change spot that makes it more of a “business”? I don’t follow the logic. Meanwhile, why are service area businesses, as shown in my search for “high weed mowing” being labeled “places”?
Surely high weed mowing is not a place…unless it is a philosophical one. Yet I saw many SABs labeled this way instead of as “businesses”, which would seem a more rational label, given Google’s historic distinction between physical premises and go-to-client models. There are many instances like this of the labeling not making much horse sense, and with the new absence of more specific wording, it feels like local pack headers are likely to convey less meaning and be more easily overlooked now.
Why has Google done this and does it matter to your local search marketing?
Clearly, Google decided to streamline their classifications. There may be more than three total local pack header types, but I have yet to see them. Hotel packs continue to have their own headings, but they have always been a different animal:
In general, Google experiments with whatever they think will move users about within their system, and perhaps they felt the varied local pack headers were more of a distraction than an aid to interactivity with the local packs. We can’t know for sure, nor can we say how long this change will remain in place, because Google could bring back the diverse headings the day after I publish this column!
As to whether this matters to your local search campaigns, unfortunately, the generic headers do obscure former clues to the mind of Google that might have been useful in your SEO. I previously suggested that local businesses might want to incorporate the varied local pack terms into the optimization of the website tags and text, but in the new scenario, it is likely to be pointless to optimize anything for “places”, “businesses”, or “in-store availability”. It’s a given that your company is some kind of place or business if you’re creating a Google Business Profile for it. And, your best bet for featuring that you carry certain products is to publish them on your listing and consider whether you want to opt into programs like Pointy.
In sum, this change is not a huge deal, but I’m a bit sorry to see the little clues of the diversified headers vanish from sight. Meanwhile, there’s another local pack trend going on right now that you should definitely be paying attention to…
A precipitous drop in overall local pack presence
In our original study, Google did not return a local pack for 18% of our manual July queries. By November, the picture had significantly changed. A startling 42% of our queries suddenly no longer displayed a local pack. This is right in line with Andrew Shotland’s documentation of a 42.3% drop from peak local pack display between August and October. Mozcast, pictured above, captured a drop from 39.6% of queries returning local packs on October 24th to just 25.1% on October 25th. The number has remained in the low-to-mid 20s in the ensuing weeks. It’s enough of a downward slope to give one pause.
Because I’m convinced of the need for economic localism as critical to healing the climate and society, I would personally like Google to return local packs for all commercial queries so that searchers can always see the nearest resource for purchasing whatever they need, but if Google is reducing the number of queries for which they deliver local results, I have to try to understand their thinking.
To do that, I have to remember that the presence of a local pack is a signal that Google believes a query has a local intent. Likely, they often get this right, but I can think of times when a local result has appeared for a search term that doesn’t seem to me to be obviously, inherently local. For example, in the study Dr. Pete and I conducted, we saw Google not just returning a local pack for the keyword “pickles” but even giving it its own local pack header:
If I search for pickles, am I definitely looking for pickles near me, or could I be looking for recipes, articles about the nutritional value of pickles, the history of pickles, something else? How high is Google’s confidence that vague searches like these should be fulfilled with a local result?
After looking at a number of searches like these in the context of intent, my current thinking is this: for some reason unknown to us, Google is dialing back presumed local intent. Ever since Google made the user the centroid of search and began showing us nearby results almost by default for countless queries, we users became trained not to have to add many (or any) modifiers to our search language to prompt Google to lay out our local options for us. We could be quite lazy in our searches and still get local results.
In the new context of a reduced number of searches generating local packs, though, we will have to rehabituate ourselves to writing more detailed queries to get to what we want if Google no longer thinks our simple search for “pickles” implies “pickles near me”. I almost get the feeling that Google wants us to start being more specific again because its confidence level about what constitutes a local search has suffered some kind of unknown challenge.
It’s also worth throwing into our thinking what our friends over at NearMedia.co have pointed out:
“The Local Pack’s future is unclear. EU’s no “self-preferencing” DMA takes effect in 2023. The pending AICOA has a similar language.”
It could be that Google’s confidence is being shaken in a variety of ways, including by regulatory rulings, and local SEOs should always expect change. For now, though, local businesses may be experiencing some drop in their local pack traffic and CTR. On the other hand, if Google is getting it right, there may be no significant loss. If your business was formerly showing up in a local pack for a query that didn’t actually have a local intent, you likely weren’t getting those clicks anyway because a local result wasn’t what the searcher was looking for to begin with.
That being said, I am seeing examples in which I feel Google is definitely getting it wrong. For instance, my former searches for articles of furniture all brought up local packs with headings like “accent chairs” or “lamps”. Now, Google is returning no local pack for some of these searches and is instead plugging an enormous display of remote, corporate shopping options. There are still furniture stores near me, but Google is now hiding them, and that disappoints me greatly:
So here’s today’s word to the wise: keep working on the organic optimization of your website and the publication of helpful content. Both will underpin your key local pack rankings, and as we learned from our recent large-scale local business review survey, 51% of consumers are going to end up on your site as their next step after reading reviews on your listings. 2023 will be a good year to invest in the warm and inclusive welcome your site is offering people, and the investment will also stand you in good stead however local pack elements like headers, or even local packs, themselves, wax and wane.