U.S. Local Search Engine Ecosystem [Learn SEO]
How local search engines work
Updated by Chima Mmeje — November 21, 2024.
Local search engines operate by combining traditional search engine algorithms with geolocation data. This data is collected from various sources, including GPS coordinates, IP addresses, and user-inputted information. By pinpointing a user’s location, local search engines can deliver search results that are highly relevant to the user’s geographical area. For instance, when someone searches for a “coffee shop near me,” the search engine uses location-based data to provide a list of nearby coffee shops, complete with details like address, phone number, and photos. This ensures that users receive the most pertinent information based on their location.
The phrase “local search ecosystem” is used to describe the existence of multiple websites, directories, platforms, and apps that list, distribute and share information about local businesses. The type of business, identified by its business category, plays a crucial role in how local searches operate and connect users with relevant services or products. As illustrated above, large databases known as “primary data aggregators” can make the information they have available to online directories and search engines, and directories can also play this role.
An example of a primary data aggregator would be a platform like Foursquare, a directory would be a website like YP.com, and a search engine would be an entity like Google. All three players can work in conjunction with one another within this complex system.
Examples of the types of data being shared would include the name, address, phone number, hours of operation, reviews, photos, and other attributes of a particular local business.
The positive and negative sides of the local search ecosystem
The positive side of this reality of how the local Internet works is that a company can submit data to one provider and have it shared out more broadly, increasing the visibility of their business information online and the chances of being discovered by the public.
The negative side of the local search ecosystem is that if the information that is published by one entity is incorrect, this bad data can also be distributed, resulting in confusion for search engines and human searchers. For example, if hours of operation are incorrect at a primary data aggregator, this misinformation can be republished by multiple directories. A potential customer visiting any of these sites may then be inconvenienced by going to a place of business when it is closed, resulting in a negative impression of the company which can lead to negative reviews, loss of reputation, and loss of revenue.
Meanwhile, if a search engine like Google encounters discrepancies across the web about the correct name, address, or other information about a business, it can lessen their trust in the validity of this data, potentially making the search engine less likely to return the business as a high quality result for searchers.
The goal for local businesses and their marketers, then, is to be sure that correct information is being submitted to appropriate platforms so that whatever data is distributed across the Internet about the business is as accurate as possible. Because businesses experience changes over time, such as alterations to open hours, moves, rebrands, or offering new or different services, managing data for ongoing accuracy across the local search ecosystem has become a core task of local search marketing.
A custom local search ecosystem for each industry and market
Because of the vital role data accuracy plays in local search marketing, many local businesses use listings management software like Moz Local to simplify the significant work involved. Rather than having to spend hours continuously monitoring a large number of platforms and editing listings one at a time when data changes, this type of product enables the customer to submit their business information just once via a single dashboard, and then have this distributed across the parts of the ecosystem in the software's partner network. The above graphic illustrates the local search ecosystem to which Moz Local distributes, including some of the data relationships that exist between many partners within this dynamic. The software also alerts the customer to emerging problems with their data for quick fixes, assists with tracking and responding to reviews, and offers other useful capabilities designed to save brands time and trouble.
For many local businesses, a software product like Moz Local will be all that's needed to widely distribute accurate data and avoid the publication of costly misinformation with very little hassle or cost. For other companies which need to work harder at competing in particular industries and markets, a product like Moz Local will be table stakes to getting their information quickly distributed to all the major sites, but this accomplishment will need to be supplemented by some additional work to build out their own, custom local search ecosystem.
For example, businesses in the legal profession may wish to be listed on directories that are specific to lawyers, such as Findlaw.com. Or, businesses located in cities with strong directories specific to these locales will want to create a listing on such platforms for maximum exposure. In other words, while there is a general framework within the overall local search ecosystem that will be applicable to most businesses, there may be additional opportunities for visibility that competitive brands will want to seek out and build out. For every industry and locale, there can be a unique local search ecosystem.
Who are the major data providers for local search engines?
Most local businesses in the US will want to build and maintain a presence on these entities:
Search Engines
- Bing
- Apple
Primary Data Aggregators
- Foursquare
- Data Axle (formerly Infogroup)
- Neustar Localeze
Major Directories and Important Platforms
- Yelp
- YP
- Superpages
- DexKnows
- BrownBook
- Judy's Book
- Waze
- Uber
- Nextdoor
- ezLocal
- CitySquares
- Cylex
- Hotfrog
- USInfo
- ShowMe Local
- TomTom
- Here
- Opendi
- Yalwa
- iGlobal
- Manta
- Tupalo
- US City
- N49
- Pages24
- Find Open
- Whereto
- Navmii
While the above list does not contain every possible platform, it is a good representation of major local business information hubs. Some of these entities power a variety of results, including mapping and automotive applications. As referenced above, companies may also need to discover listing opportunities specific to their industry or locale, such as TripAdvisor for the hospitality sector or Healthgrades for medical professionals. Meanwhile, sites like the Better Business Bureau or local Chamber of Commerce offer additional opportunities.
How many local business listings does a local business need to compete in local search engine results?
The answer to this question will be unique to each business. Local business listings (also known as “structured citations”) are believed to influence local search engine rankings, and it makes sense that a company would want to build enough of them to compete with the top-ranked brands in their town or city. It stands to reason that one of just three bakeries in a rural area will need to do less marketing work, overall, than a personal injury attorney with dozens or hundreds of competitors in a major city.
An effective marketing strategy should integrate local SEO efforts to enhance online visibility and attract more local customers.
In either case, a common mistake is for local business owners to believe that they must continuously build out more and more citations. However, research indicates that this is not the wisest investment of budget as, after a certain point, the work will provide negligible returns. A large industry study determined that businesses of all sizes will see the best returns from building out about 31-40 citations. Be wary of services which charge you to create hundreds of such listings, as they are likely to be published on low-quality platforms and provide little benefit.
Optimizing for local search
To optimize for local search, businesses should implement several key strategies:
- Claim and optimize local business listings: Ensure your business is listed on major directories and search engines, and keep the information accurate and up-to-date.
- Use relevant keywords and categories: Select keywords and business categories that reflect your services and improve your visibility in search results.
- Build high-quality backlinks: Obtain backlinks from reputable local websites and directories to boost your search engine rankings.
- Create a Google Business Profile: Set up and optimize your Google Business Profile with accurate information, photos, and regular updates.
- Encourage customer reviews: Ask satisfied customers to leave reviews and respond to them promptly to build trust and credibility.
- Use location-specific keywords: Incorporate location-specific keywords and phrases on your website and social media profiles to attract local search traffic.
By following these steps, businesses can improve their local search engine optimization and increase their chances of appearing in local search results.
Measuring local search success
To gauge the effectiveness of your local search efforts, track the following metrics:
- Website traffic and engagement: Monitor page views, bounce rate, and time on site to understand how users interact with your website.
- Search engine rankings and visibility: Keep an eye on keyword rankings and your visibility on search engine results pages (SERPs).
- Conversion metrics: Track phone calls, form submissions, and sales to measure the impact of local search on your business.
- Review and rating metrics: Pay attention to the number of reviews and your overall rating to assess customer satisfaction.
- Social media metrics: Analyze followers, engagement, and reach on social media platforms to understand your online presence.
By regularly tracking these metrics, businesses can gain valuable insights into their local search performance and make data-driven decisions to enhance their online visibility and drive more sales.
What are the benefits of building a presence in the local search ecosystem?
Again, the results will differ based on your unique competitive scenario, but the same study quoted above found that local search visibility increased 91% from getting distributed to 10+ directories over a 13-month period. The need to be discovered by the public is the best reason for participating in this form of local search marketing.
It can be very useful to think of the work of building and maintaining accurate local business listings as a form of customer service. Every local company already understands the importance of creating a clear welcome to the public, and this is what online listings do. Meanwhile, as local search technology advances, listings have become active instead of passive data sources. They are the hub of activities such as leaving and responding to reviews and questions, booking appointments, direct messaging, social posting, and even shopping. As the sophistication of local business listings increases, having an organized plan for serving customers well through active listings management will continue to grow in importance.
Have questions about what listings management software can do for your business and clients? Learn more about Moz Local and contact our friendly team for answers.
Keep Learning
- Local SEO Cheat Sheet [Free PDF Download] - Keep on top of your local SEO tasks with our free downloadable cheat sheet.
- Local SEO Certification - In this six-part Certification, you’ll receive nearly six hours of on-demand, instructor-led content, covering the fundamentals, local competitor research, location data management, reputation management, and measuring and tracking success.
- The Impact of Local Business Reviews on Consumer Behavior | SEO Industry Report - Our local business review survey outlines key takeaways regarding the impact of reviews on consumer behavior and local business success. Learn more about the fundamentally important inclusion of online local business reviews in any local SEO strategy.
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Check your listings on Google, Bing, and other local search engines.
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