What does the new Google local pack mean for SEO?

In August Google updated its local search results pack. There are several implications for SEO and this blog outlines my take on the impact of this update. For a detailed background on the pack update, take a peek at Jennifer Sleggs’s excellent Moz article.

Here’s a quick summary of the key changes before we discuss the implications:

1. Mobile and desktop designed to align user experience across devices
2. The old 7 pack of local business listings has now reduced to 3 on desktop
3. The exact street address has been removed from the local result and replaced with a street name
4. New filter by rating added for users
5. New ‘home service ads’ introduced, providing a 3 pack of sponsored listings (appearing above organic listings).

Google local SEO 3 pack listing – desktop

Google local SEO 3 pack listing – mobile

Implications

1. Businesses with more than 2 main competitors will find it harder to be visible for local searches

With only 3 organic slots up for grabs, local SEO will become more challenging to ensure you have visibility. This doesn’t mean you can’t be seen, it just means the prominence of your business will be significantly reduced if it falls outside the top 3.

If you’re operating in a crowded local market (think restaurants in major cities), this will demand a refocus on core marketing to give you a competitive advantage and tip the Google ranking in your favour.

In less crowded areas, you may well find the status quo is preserved.

2. Increased prominence of mobile ads will make it harder for businesses with small ad budgets to compete for local mobile search

The new ‘home service’ ads are being tested in the US but look incredibly similar to the organic local search listings; they also appear in a 3 pack.

Mobile cost per click has historically been lower than desktop and mobile revenue is a major Google focus. This test is likely to expand and indicates a move to improve mobile search revenue.

The likely impact is a more prominent paid local search model for mobile. With only 3 paid ad slots available, this scarcity will naturally drive up CPC to create a premium, favouring companies with big budgets. This could be a major problem for small business when competing for mobile local search. If premium costs kick-in, marketers will need to reevaluate their campaign strategy to ensure budgets are effectively spent and not eaten up by unprofitable expensive keywords (which they should be doing anyway!). But it does make brand coverage more challenging without a smart paid mobile strategy.

Google local SEO ad pack

3. Harder for users to find addresses

This could be a double-edged sword. Typically, the aim of online marketing is to get people to a website and get them to convert, whether that’s making a purchase of taking another actions e.g. email sign-up. However, with local search, the primary aim is to promote a local business and get people to visit.

With the exact address now removed, users are forced to click further to find the details. On the one hand, this isn’t a great user experience, as it slows down the user journey. However, perhaps it could be beneficial as more users could click through to the website, as the website link is right next to directions link.

Google local business listing – mobile

4. Getting business ratings is more important than ever

I’ve long been a fan of encouraging business reviews, both through on-site review engines and Google reviews. I’ve run a few simple tests and found that ranking receives a boost, based on review recency, if you’re regularly getting new reviews and competitors aren’t.

As the new local pack has a ratings filter (well it’s being tested at least), reviews could help elevate your listing above competitors who aren’t taking reviews seriously.

This is already partly the case because a listing with review mark-up will display the star rating, which is visually stronger than a listing without ratings and has been shown to uplift click through. However, filtering by rating will help users select the best-rated local businesses, which could have a more significant impact on CTR.

Summary

Local search just got more competitive. There is less space, which means greater competition in crowded markets. The end game for Google is, inevitably, greater mobile search revenue, which means higher marketing costs for businesses.

To stand a realistic chance of being in the organic 3 pack, SEOs must focus on quality across all local SEO levers, including citations, reviews & content. Local PR, often overlooked, may play an important role in raising your local profile, especially when combined with online influencers such as news sites and bloggers.

Above all, now’s the time to review your paid local mobile search campaigns and ensure your budget is focused on the most important search queries.

Your view

What do you think of the latest local pack update? How do you see it affecting SEOs?

We’d love to hear your thoughts in this.

Thanks, James