Google recently began a pilot program to further cement the ties between its online search functionality and the physical world. Last month, the company distributed window decals to the most popular 100,000 or so locally listed businesses. It is easy to view this program cynically--as a bit of a trick that Google figured out to get listed businesses to advertise the search engine for free while nudging unlisted businesses to get with the program. While both of those things are true, both the timing of this initiative and the amount of effort put out from Google suggest that it may be time to start considering the physical world as a key element in Local Search Optimization.

Before going any further, I want to stress the word 'may'. Because this program is brand-new, it is difficult to predict how popular it will be among users and businesses. I would be remiss to not acknowledge that similar programs have been attempted in the US before, to no avail. Yet there are, I believe, reasons to believe that the timing may be just right this time.

QR Codes

If you haven’t seen them, these decals bear the message “We’re a Favorite Place on Google”, as well as a QR code, which is a two-dimensional barcode that represents the URL of the company’s local listing. Passersby can use a variety of mobile apps, available for the iPhone, Android, and Blackberry platforms, to scan these codes using their phone’s camera. Once scanned, the user is taken to the company’s local listing. Incidentally, these codes can be displayed on a variety of physical and ethereal media: they will work not only on decals, but also on billboards, business cards, computer monitors (try the examples in this post), TVs, and possibly even movie theater screens as well.

Google (which had a failed attempt at using QR codes in print ads last year) believes that these decals will convince US users to finally adopt the technology. In other parts of the world, most notably Japan, QR codes have been ubiquitous for years; one estimate claims that they are regularly used by 83% of young Japanese consumers, for everything from getting a bus timetable to entering contests and promotions.

For a good overview of the potential of these codes, check out this SEOMoz post from 2007. The important thing to recognize is that the combination QR codes and mobile phones might represent the critical missing link between the web as we currently understand it and true Augmented Reality.

 QR Codes and Local Search

My first reaction to this program was, as I suspect has been the case with a lot of people, ‘that’s kinda cool, but a little gimmicky’. Yet as I have become more familiar with the program, it’s clear that it might have serious implications for local search.

The first hint that this is the case is the manner with which Google decided which companies would receive the decals. Their formula for the top 100,000+ Favorite Places was based largely on user interaction with local listings, including how many people searched for driving directions to a given location.

Some have argued that this may have unintended consequences: certain types of businesses are likely to receive a phone call from potential visitors rather than more-easily tracked user engagement with Google. Or, certain businesses’ clientele may be less keen on using Google Maps for directions. As a result, these businesses are unintentionally penalized by the company’s formula for PlaceRank. Like web search, the structure of the system may be limited in determining the actual popularity, community standing, or other relevant factors in determining the popularity of a given business.

Extending this line of thought, it is very likely that Google will continue to determine PlaceRank at least in part by user interaction with a company’s local listing. If the QR codes program takes off, that will mean that businesses whose code is scanned more often will have an inherent PlaceRank advantage moving forward.

While this may seem to be a perfectly reasonable set up, there are plenty of real-world complications. For one, it means that the search engine will favor businesses that are in areas with dense walking traffic. People are far more likely to see (and thus scan) the decal of a storefront on a busy street than a small business on the second floor of an office plaza, for example.

We could debate whether or not such a ‘visibility bonus’ is in the best interests of users, Google, or businesses themselves, but the important thing here is what it will mean for SEO and local search. Most obviously, it means that the industry needs to be aware of  particular challenges created by the codes. Unlike traditional SEO, where most issues are under out (at least indirect) control, the new system could mean that there will be issues of geography that the SEO can’t easily address. After all, getting a client to move their business to a more easily-scanned location solely for local rankings seems like a tough sell!

That being said, there will be certain elements of the program that we can  control. For one, SEO firms should ensure that those clients who have received the decals (if the program takes off, Google seems willing to print the decals for many more companies) display them prominently. The exact spot for this will, of course, depend on the specifics of the given business, but the important point here is to find an optimal, visible location for the decal. Critically included in this decision will be maximizing available light: the reasons for this should be obvious for anyone who has ever taken a cell-phone picture at night and ended up with little more than dark splotches.

Additionally, in settings where the competition will be likely to have a higher level of scans than the client based on location, it will be even more important to use standard best practices to optimize the client’s local listing. Those businesses that are handicapped by location will require even more work to maintain good standing in the local results.

It is entirely possible that, for whatever reason, users will not adapt to scanning QR codes and the program will have little effect on search results. On the other hand, the initiative could take off swiftly, and it is our job to stay on top of future developments in the program. As with any new program, there are plenty of opportunities for experimentation and trial-and-error: restaurants may find that including the QR code (which can easily be reproduced and reprinted using web-based utilities) on a menu for customers to access coupons can vastly improve PlaceRank, or non-visible businesses may get a boost from including it on business cards, to give two examples.