How Does Google’s Local Search Algorithm Update Affect Your Business?

In what has been coined by Search Engine Land as the “Pigeon” update, Google recently made changes to its algorithm that may significantly affect the ranking of your business on local search.

The algorithm update is intended to improve distance and location parameters on local search results to increase overall relevancy.  Given the great importance of local search in the success of many businesses, Google’s algorithm update is noteworthy as it may change the number of referrals and traffic that your website is getting from local search terms.  The update focuses on ease of choice for users by minimizing the number of options that are available in the Google Local search results while providing users with expanded choices through the local directory results that will now rank higher.

The “Pigeon” algorithm update will better include web search capabilities into local search results as well as local search features including the Knowledge Graph, spelling correction and synonyms.  A primary focus of the change is the prevalence of directory sites ranking above individual business sites and the removal or reduction of Google Local and Carousel results from specific search terms.

The affect of this update on local businesses is very significant.  Google has hyper-localized the Local search results as well as reducing the number of Google+ local results that show up from seven to three or even one in many instances.  A major change that comes from this update is the shift from individual business websites to directory sites on certain search queries.  Previously, users may have seen Google Carousel or Local results followed by the highest ranking businesses, but with this update, users will begin to see relevant directories appearing below the Carousel or Local results.

For all local businesses, this update creates an added emphasis on directory sites, including those that cater to all business categories as well as directories that specialize in what is relevant to that specific type of business.  Users will find Yelp, Yahoo, Yellowpages, Trip Advisor, Urbanspoon and other directory sites to be among the top of the search rankings for a large number of category searches.

It’s essential that businesses understand this change and alter their approach accordingly to increase their traffic as opposed to experiencing a decrease.  While the hyper-localization of Local search results may result in some businesses showing up less often on Local searches than before, the relevancy of the exposures may increase as those who find the business may be more qualified than they would have been in the past.  Some businesses are reporting an increase in traffic due to the higher quality and localization of the search results, as well as the reduction of the number of businesses that appear.

Google’s algorithm update can provide opportunities for businesses to increase their traffic by making sure that they are listed and predominant on all of the directories that are most relevant to their industry.  It can be greatly beneficial to create enhanced content on directories as well as listing your business on as many directories as possible to increase the chances that you will be found, regardless of which directories are boosted by Google in its algorithm updates.