Why Local SEO Matters for Business Growth
Local search is one of the most powerful ways businesses attract customers. With 46 percent of all Google searches having local intent and 78 percent of local searches leading to in-store purchases within 24 hours, businesses that fail to optimise for local rankings risk losing valuable customers to competitors.
Yet, many businesses struggle to appear in Google’s Local Pack (the top three Google Maps results). They optimise their Google Business Profile (GBP), gather reviews, and post on social media, but still find themselves outranked.
Why does this happen? Because local SEO is no longer just about proximity or having a website – it also includes engagement, authority, and trust.
This guide breaks down the local SEO ranking factors that matter most in 2025, helping you focus on what actually drives results.
How Google Ranks Local Businesses
Google’s local search algorithm is built on three key factors:
- Proximity – How close your business is to the searcher.
- Relevance – How well your business matches what people are searching for.
- Prominence – How well-known and trusted your business is.
If your rankings are lower than expected, one or more of these factors needs improvement.
What No Longer Works in 2025: Outdated Local SEO Tactics
Before exploring what works, let’s clear up outdated tactics that will no longer help you rank in local search results.
Local SEO Tactics That No Longer Work
- My Maps with Hundreds of Pins
Google now ignores mass map stacking. - Fake Driving Direction Stacking
Buying fake “get directions” clicks no longer has an impact. - Spammy Map Embeds
Embedding a Google Map everywhere on your site does not improve rankings. - Buying Fake Reviews and Engagement
Google detects and penalises artificial signals.
Local SEO Tactics That Work Instead
- Real user engagement, including clicks, direction requests, and Q&A interactions.
- High-authority local mentions from reputable news articles, business directories, and partnerships.
- User-generated content, such as geotagged photos, customer check-ins, and social media engagement.
If ranking in Google Maps and local search is your goal, focus on real-world trust signals instead of outdated hacks.
1. Proximity: Why Location Still Matters
Google prioritises businesses that are physically close to the searcher, but proximity alone is not enough to guarantee top rankings.
How Google Determines Proximity
- Google Business Profile (GBP) Address – Verified locations rank higher.
- User Location Data – Google personalises search results based on the user’s exact position.
- Service Area Businesses (SABs) – Businesses without a physical storefront, such as mobile mechanics and electricians, must carefully define service areas.
- Driving Directions & Foot Traffic – Businesses with frequent “Get Directions” clicks and check-ins get a ranking boost.
Google prioritises businesses with a strong local engagement footprint in highly competitive niches. If people frequently visit a store, check-in, or request directions, Google sees this as a trust signal.
How to Improve Proximity Rankings
- Keep your service areas updated in GBP.
- Use location-based landing pages for each service area if you serve multiple regions.
- Encourage real driving direction requests from customers.
2. Relevance: How to Ensure Google Understands Your Business
Google ranks businesses higher when their business details, content, and services match what people are searching for.
Key Factors for Relevance
- Google Business Profile Categories – The primary category should closely reflect the business. Secondary categories provide additional visibility.
- Keyword Optimisation – Location-based keywords should be included in GBP, website content, and descriptions, such as “emergency plumber near me” or “best coffee shop in Sydney CBD”.
- Service and Business Descriptions – Detailed descriptions help Google understand what you offer.
- Local Content and On-Page SEO – Websites should include dedicated pages for each service area and frequently asked questions related to customer searches.
How to Improve Relevance Rankings
- Conduct keyword research to understand real-world customer queries. Look at competitors to see what works for them.
- Optimise Google Business Profile service descriptions to match search intent.
- Create location-specific content that directly answers search queries.
3. Prominence: Authority and Trust Win Rankings
Prominence measures how well-known and credible your business is in the local search landscape.
What Google Looks At
- Review Volume and Frequency – A steady flow of new, authentic reviews helps rankings.
- Citations and NAP Consistency – Your business name, address, and phone number (NAP) must match across directories.
- Local Backlinks and Mentions – Links from reputable websites and local news publications improve credibility.
- Social Media and Brand Mentions – Unlinked brand mentions can contribute to prominence.
How to Improve Prominence Rankings
- Actively request customer reviews and respond to them.
- Ensure consistency across all business directories.
- Earn backlinks from local news sites, industry publications, and business directories.
How to Test What Works in Local SEO
Instead of relying on outdated tactics, businesses should track which strategies genuinely improve rankings.
How to Run Local SEO Tests
- Start with a test location or service area page and monitor ranking performance.
- Use geo-grid rank tracking tools to measure changes in local rankings, such as GMB Crush, Local Falcon or Bright Local.
- Experiment with different ranking factors, such as review frequency, backlinks, and engagement metrics, to see what has the most significant impact on your business.
- Stop wasting resources on gimmicks and focus on strategies that drive real engagement and trust signals.
The Future of Local SEO and AI Integration
Google’s local search algorithm increasingly relies on AI-driven analysis, prioritising real-world business activity and engagement.
Key Future Trends in Local SEO
- AI-generated search results are shaping how businesses appear in local search rankings.
- Voice and visual search optimisation will become more important as users rely on assistants like Google Assistant, Siri and Alexa to find local businesses.
- Google’s local ranking algorithm is evolving to prioritise sentiment analysis from customer reviews.
Businesses that stay ahead of these trends and prioritise engagement over shortcuts will dominate local search in 2025.
What You Need to Focus on in 2025
- Optimise your Google Business Profile, but do not rely solely on it.
- Strengthen website SEO, technical optimisation, and structured data.
- Leverage AI-driven search, voice search, and local content strategies.
- Earn high-quality local backlinks and manage customer reviews effectively.
- Expand beyond Google—Apple Maps, Bing Places, social media, and local business directories also impact rankings.
Need Help With Local SEO? Get a Free Audit
Is your business struggling to rank in Google’s Local Pack? Whether you need to fix existing issues or implement new strategies, our team can help.
