Many small business owners believe that local SEO is just a gimmick, an irrelevant expense that’s not really pertinent to an effective overall marketing strategy. Nothing could be further from the truth.
The fact is that search engine optimization is critical for small businesses that want to compete on a local level. Limiting your marketing strategy to social media and word of mouth just isn’t going to cut it. Here are 3 reasons why SEO is a sound investment that will lead to improved sales, an increased customer base, and more traffic to your site.
Local SEO Makes Adwords Affordable
If you’ve ever used Google Adwords to advertise your business online, then you know it can get very expensive. The reason for this is that for every single time your ad is clicked, you’re charged. Not only that, the more popular a chosen keyword, the more you pay per click.
The trick behind making Adwords profitable is finding keywords that aren’t targeting national terms, but rather those that are relevant to your local area. For example, let’s say you run an Italian restaurant in Houston. If you opt for the keyword ‘best Italian restaurant’ on Adwords, you’re going to be paying a pretty penny to rank. However, going for ‘best Italian restaurant in Houston’ is far less competitive. This means you pay less per click and you’re going to be reaching a local audience.
For small businesses, this can make a huge difference to the bottom line. Using the new Google Keyword Planner, keywords that aren’t as popular but have a higher conversion rate can be chosen. You’ll pay less for each click and you’ll need fewer of them to get a sale.
First Page of Local Google Searches = Free Targeted Traffic (+ It’s Easier!)
Getting on the first page of Google for a targeted organic search term can be extremely lucrative. You’ll get hits to your website without having to pay for each click, as you’ll be appearing on the first page naturally. You’re essentially receiving free traffic from Google.
However, getting a space on first-page real estate just doesn’t happen by accident. If you want to rank in the top 10 of a Google search, you’re going to need to oust other companies that have already claimed a stake.
Targeting national terms means you’ll be competing with companies all over the United States. It’s much harder and will take significantly longer to achieve – that’s if you actually get there.
Instead, it’s preferable to go for local terms. You’ll have far less competition for those top Google spots and you can get there in a matter of weeks. Not only that, you’ll get visitors that are from your local area.
Google Loves Local Business Signals
In recent years, Google has given preferential treatment to websites that serve local areas. While many people see Google+ as a poor man’s Facebook, it’s becoming increasingly relevant for small businesses.
The platform can be used to give Google all sorts of signals to legitimize your business. These enhanced features not only help you rank, but will also boost your click-through rates. These are just some of the perks that you get by localizing your Google profile:
Map that clearly displays your business location
Photos that represent your business will be shown on the search result pages
If your website has reviews through Google, excerpts and star ratings will be displayed to searchers
If you don’t do some local SEO work to optimize these signals, you’ll have little chance of ranking on local searches. And even if you do, your business won’t have the perks given to Google+ users.
We only see this platform becoming more relevant in 2014 – jump on the bandwagon before it’s too late. Entrenching your presence early can make all the difference.
Editorial note (updated): this article was written several years ago and originally referenced Google+ and a then-current calendar year. Google+ was shut down for consumers in April 2019, and Google's local ecosystem now centers on the Google Business Profile. The reasons below remain valid; the tactics have been updated to current practice and the dated references reframed.
Updated: the local-SEO levers that actually matter now
The three reasons in the original — cheaper, better-converting paid clicks; achievable first-page organic placement; and Google rewarding local signals — all still hold. What changed is how you act on the third one. The work today is:
- Google Business Profile (the successor to the old Google+/Places setup). A complete, accurate profile — correct categories, hours, photos, products/services, and a steady flow of genuine reviews with owner responses — is the single highest-leverage local-SEO asset. It feeds the map pack the article describes (map placement, photos, star ratings in results).
- NAP consistency and citations. Your business name, address, and phone must match exactly across your site, the Business Profile, and major directories. Inconsistency is one of the most common, most fixable local-ranking drags.
- Localized on-page content. City- and service-specific landing pages with genuinely useful, non-templated content — not a doorway page per ZIP code, which is penalized, but a real page that serves searchers in that area.
- Local intent in paid search. The Adwords-affordability point still stands and the mechanism is unchanged: geo-modified and location-targeted terms ("Italian restaurant in Houston") are cheaper per click and convert better than national heads. Modern campaigns add radius targeting and location assets to compound it.
Why local SEO is still the highest-ROI move for a small business
A national term pits you against everyone; a local term pits you against the handful of competitors in your service area, and Google actively favors proximity and prominence for local intent. That is why a small business can realistically reach the top of local results in weeks-to-months where a national term might never be winnable — and why every one of those local clicks is closer to a purchase than a broad national visitor.
Frequently asked questions
Do I still need a website if I have a Google Business Profile? Yes. The profile is the map-pack engine, but it links to and is corroborated by your site. Consistent on-site content, local landing pages, and reviews on both reinforce each other; the profile alone is a weaker, ceiling-limited presence.
How fast does local SEO work compared to national? Far faster, because the competitive set is smaller and proximity is a strong signal. Foundational fixes (profile, citations, on-page) often move local rankings within weeks; national authority takes much longer.
Is paid search still worth it alongside local SEO? Yes, especially early. Geo-targeted paid covers you while organic and the Business Profile mature, and its query data sharpens your organic targeting. The original article's point about local terms being cheaper and higher-converting is still exactly right.
If local visibility is where your growth is, see our local SEO services and PPC work, or contact us for a local audit.