What Is Local SEO and How Does It Work?

Luke Sumpter
I
In 2025, local SEO is essential for attracting nearby customers and staying competitive. This guide covers how local SEO works, top ranking factors, practical strategies, and common mistakes to avoid. Learn how to boost visibility, build trust, and increase conversions through location-based optimisation.

Search engine optimisation (SEO) plays a huge role in the success of a business. In our age of information and technology, the quality of a product or service matters—but so does its exposure to internet users. You can offer the best product or service in the world within your particular niche, but if nobody sees it, then nobody will buy it.

Focusing on SEO allows businesses to leverage search engine algorithms to give them the upper hand. Content quality, internal linking, keyword usage, user experience, and many other factors influence SEO and determine where your pages rank in search engine results pages (SERPs).

However, not all internet users have a global search intent when typing terms into Google. Various sources claim that around 50% of all Google searches have a local intent, with users often seeking products and services within close proximity to where they live—whether that’s a dentist in Dover, a pizza place in Paris, or a florist in Faro. If your business isn’t optimised for local search intent, you’re missing out on a significant opportunity for engagement and conversions.

What Is Local SEO?

Ultimately, local SEO helps businesses promote their products and services to nearby customers at the exact time they’re looking for them. Whereas SEO in general determines where a business’s content ranks in SERPs, local SEO applies this to current and potential customers that live in close proximity to brick-and-mortar locations, from cafes and restaurants to offices and other outlets.

Mastering local SEO will enable your business to establish a firm online presence in a specific region and attract more traffic from relevant local searches. These searches, often conducted through Google but also via other search engines, use geo-specific terms and queries that imply location-based intent, such as “best coffee shop near me” or “best local bar”.

By implementing local SEO strategies, you’ll impact the algorithm and drastically increase the chances of ranking high on SERPs, resulting in more engagement and conversions.

 


Yuqo quotesLocal SEO is about optimising your business online so nearby customers can easily find your website, products, and services when they search with location-based intent.


 

Why Local SEO Matters in 2025

Focusing on local SEO not only helps businesses scoop up customers in their local area; it also enables them to keep up with their competition in this rapidly shifting digital era. The virtual landscape continues to evolve, with AI-driven and mobile-first searches dominating. Ultimately, local SEO is no longer an option—it’s a core growth strategy for small and service businesses.

As of 2025, roughly 63% of all Google searches are performed on a mobile device—users are searching on the go.¹ Whether they’re travelling on public transport, out for a stroll, or about to leave work, people expect instant and relevant answers regarding local businesses and services.

On top of this, Google’s algorithms are becoming increasingly advanced in delivering ultra-specific results based on location, user behaviour, and intent. Therefore, local queries now deliver pinpoint results—and businesses need to capitalise.

Finally, AI-enhanced search results now offer tailored results based on past activity, preferences, and physical location, meaning businesses need to tweak SEO to meet both the search query itself and user expectations.

 


Yuqo quotesLocal SEO matters more than ever in 2025 due to mobile search dominance, AI-driven results, and the growing value of hyperlocal visibility.


 

How Does Local SEO Work?

Local SEO works by optimising various online signals that search engines use to determine a business’s relevance to a local searcher. These signals come from your website, Google Business Profile (GBP), local directories, user reviews, social media activity, and more.

Search engines aggregate this information to deliver the most accurate, relevant, and trustworthy local results. In 2025, local SEO requires strategic planning and consistent execution. It takes work, but it’s well worth the effort. Enhance your local SEO strategy and you’ll see a surge in customers, users, and engagement. Plus, this all comes with the huge benefit of building brand trust—a key perk that local businesses enjoy over their global competitors.

In this post, we’ll be walking you through the fundamentals of local SEO, and how it impacts business success.

Core Components of Local SEO

To wrap your head around local SEO and implement it as fast as possible, it helps to get familiar with the core components. These include optimising your GBP, targeting local keywords, review management, and on-page signals.

When it comes to refining your GBP, start out by ensuring your business name, address, and phone number are correct. Next, choose the correct primary and secondary categories that best describe your business. From there, aim to upload quality images regularly. Finally, include accurate business hours, services, and attributes.

Next, make sure to include geo-specific keywords, such as “best pizza in Camden”. Infuse these keywords into your homepage and service pages, title tags, header, meta descriptions, and blog posts.

Incentivise customers to leave positive reviews on Google, Yelp, and other platforms as a form of valuable social proof. Go a step further by responding to every review—positive or negative—to show great customer service.

Finally, optimise on-page signals to bend the algorithm to your will. You can achieve this by infusing title tags and H1s with local keywords, writing catchy meta descriptions that encourage clicks, using schema markup to enhance visibility, and perfecting mobile usability.

Off-Page Factors That Influence Local SEO

There are also several important off-page factors that hold significant sway over local SEO and that determine where your pages rank on SERPs. Local link building has a particularly big impact. This strategy helps you build authority in the eyes of the algorithm. You can achieve local backlinks through various means, including the following:

  • Reaching out to local blogs for guest posting opportunities
  • Submitting press releases to local news outlets
  • Sponsoring community events or charities for mentions
  • Collaborating with local influencers and micro-celebrities

You should also ensure the accuracy of name, address, and phone number (NAP) details. You can do this by using tools such as Yext to search for inconsistencies, by claiming a listing on major directories, and by monitoring aggregator sites that feed data to multiple platforms.

 


Yuqo quotesLocal SEO works through a combination of on-page optimisations, GBP enhancements, review generation, and local link building.


 

Key Local SEO Ranking Factors in 2025

Search engine algorithms have grown more complex. In 2025, ranking locally is based on a combination of proximity, relevance, and prominence—but that’s not all. Search behaviour, local content, and user engagement metrics are increasingly influential.

Proximity, Relevance, and Prominence

These three factors are fundamental to any effective local SEO strategy. Familiarise yourself with them in more detail below and keep them in mind during every step of the process:

  • Proximity: This is determined by the searcher’s location in real-time, usually via GPS or IP data. The closer your business is, the more likely it is to appear in results.
  • Relevance: Search engines look at how well your business profile, website content, and citations align with the query. Proper categorisation and comprehensive service descriptions are key.
  • Prominence: This is tied to your online reputation, backlink profile, and brand authority. Prominent businesses often have consistent media coverage, higher engagement, and more reviews.

Behavioural Signals

User behaviour provides Google with essential indicators about the quality and relevance of your business. These signals help search engines determine whether your listing genuinely satisfies user intent.

  • Click-Through Rates (CTR): A high CTR indicates that users find your listing compelling and relevant. Improving your titles, meta descriptions, and GBP content can significantly boost CTR.
  • Engagement: When users interact with your GBP—viewing photos, checking hours, clicking links, requesting directions—it shows Google your listing is useful and engaging.
  • Conversions: Beyond clicks, actions like calling your business, booking appointments, or completing contact forms demonstrate meaningful user engagement.

Understanding and improving behavioural signals means optimising every customer touchpoint—from SERP snippets to post-click interaction.

Local Content Creation and Topical Authority

Landing in the sweet spot of the first 3–5 listings for a search engine query is a huge advantage

Creating locally relevant, high-quality content not only attracts nearby customers, but also signals to search engines that your business is an authority in its geographic niche. This strengthens your rankings over time.

  • Regular updates: Maintain a blog that discusses community news, local events, and service-related topics unique to your region. Timely, relevant updates tell Google your business is active and invested in the local community.
  • Location-based resources: Develop in-depth pages focused on specific neighbourhoods, cities, or landmarks you serve. For example, a landscaping business might publish “Top 5 Gardening Trends in Oxford”.
  • Structured data markup: Use schema.org tags to provide search engines with precise location and service information, increasing your visibility in rich results.
  • Collaborative content: Partner with local influencers, charities, or organisations to produce co-branded content. These collaborations drive backlinks, improve local relevance, and enhance trust.

Together, behavioural signals and topical authority establish your business as both relevant and trusted in your locality.

 


Yuqo quotesIn 2025, your local SEO success hinges on relevance, proximity, prominence, engagement metrics, and content that establishes local authority.


 

Practical Tips for Improving Local SEO

Improving your local SEO doesn’t need to be overwhelming. Here are actionable steps you can implement today for fast, measurable improvements.

Perform a Local SEO Audit

Performing a local SEO audit will help to reveal blindspots and allow you to patch up areas where you’re underperforming. Take these steps using our local SEO audit checklist for businesses:

  • Use BrightLocal to benchmark against competitors
  • Check GBP insights for weak engagement areas
  • Identify top-performing local pages and replicate their structure

Optimise Your Google Business Profile

Next up, give your GBP the full attention it deserves and refine it with the following tips:

  • Schedule weekly photo uploads to keep your listing active
  • Use the “posts” feature to share updates, offers, or blog highlights
  • Add attributes, such as “free Wi-Fi”, to enrich listings and put attractive perks on display
  • Frequently check performance metrics and tweak accordingly

Gather and Manage Customer Reviews

Making reputation management a dedicated part of your workflow won’t only help to improve local SEO, but it’ll do wonders for building brand image and trust. Make an effort to include the following:

  • Use platforms such as Podium for automated responses
  • Segment review requests by customer type to improve targeting
  • Embed reviews in service pages for on-site trust-building
  • Address fake reviews by flagging them through Google support

 


Yuqo quotesImprove local SEO through regular audits, GBP optimisation, and proactive review management.


 

Common Mistakes to Avoid

Local SEO can have a massive positive impact on your business—but only if you pull it off correctly. Stray from best practice, and you simply won’t achieve the best results possible. Find out what to avoid below to stay on the path to success.

Inconsistent NAP Info

Search engines rely on data consistency. Differences between listings (e.g. “Street” vs “St”) can lower trust signals and reduce rankings. Maintain a central record and use citation tools to stay aligned.

Ignoring Mobile Optimisation

A mobile-unfriendly site leads to high bounce rates and lost conversions:

  • Use responsive design for all devices
  • Optimise forms for thumb use and autofill
  • Integrate click-to-call buttons for convenience
  • Test usability on various screen sizes regularly

Poor Review Management

Ignoring or mishandling reviews can damage trust and reputation while detracting from your overall local SEO score. Avoid generic responses and make an effort to personalise each reply. Never argue publicly, and instead use negative responses to improve your products and services.

Neglecting Local Content

Generic blogs don’t resonate locally. Instead, share success stories from local clients. Likewise, think up ways to create seasonal content that syncs up with local events, festivals, and other occasions.

 


Yuqo quotesAvoid local SEO pitfalls like inconsistent NAP, neglecting mobile, poor reviews, and lack of local content to maintain search visibility.


 

Is Doing Local SEO Worth It?

In short: absolutely. Whether you run a single-location bakery or a multi-location law firm, local SEO can drive meaningful, measurable growth and deliver one of the highest ROIs in digital marketing.

Not only are you aware of the benefits, but you’ve learned key local SEO ranking factors. Now, it’s time to implement those local SEO best practices for small businesses and experience a surge in engagement, brand trust, and conversions in the process!

References:

1. Jones P. 34 Eye-Opening Google Search Statistics for 2024. Semrush Blog. Published January 11, 2024. https://www.semrush.com/blog/google-search-statistics/