Today, David Mihm released his influential 2010 Local Search Ranking Factor survey. This year 34 search engine marketing experts provided their insights and the result is some very valuable information to help you gain a better understanding of how Google’s Local Algorithm ranks listings.

The Top 10 Local Search Ranking Factors:

Based on the collective insights of all the search marketing experts, these are the top 10 factors that stand out from the survey:

1. Claiming your free Google Places listings obviously has a huge impact. Fully completing your profile with all the requested information will provide the foundation to achieve a high ranking.
2. Having a business address in the city being searched is a crucial factor. Well-optimized listings from suburban locations can also rank well in the search results. It is recommended that you use an physical business location rather than a P.O. Box or residential address.
3. Choosing the right business categories is highly beneficial. As categories are becoming more customized it is important that you target the most effective and relevant categories.
4. Adding your targeted product/service keywords in your Google Places Business Title still seems to be an effective way to rank. This is likely to change as it is against Google’s listing guidelines. Ideally, your keywords should be part of your official business name. Othwerise, it is best to avoid keyword stuffing in the title.
5. The quality of the off-page citations and incoming links to your business website is one of the most powerful ranking factors. Citation sources include Internet Yellow Pages websites, local directories and blogs. This factor will continue to rise in importance.
6. Customer reviews can be very helpful. Having good reviews may not make a significant difference in your rankings but it is a  huge factor in converting visitors into leads and sales. Reviews on third-party websites like Yelp can also influence local ranking.
7. The proximity of your business address to the center of the city continues to hold sway. In competitive markets, this can be a significant factor but is likely to decline in importance as Google improves its local listing algorithm. You should also use the dominant local area code as your primary phone number rather than a toll-free number.
8. Having your product and service keywords in your page description tends to work very well. Keep it mind that your business description should still read naturally to your potential customers.
9. Adding photos to your local listing remains an easy way to increase your visibility on Google Places. Not only will they help your ranking, photography and company logos make your business look more professional and trustworthy.
10. Another important factor is having your business included in user-generated content like MyMaps, KML files, geotagged images and videos.

Other ranking factors are discussed in the survey, including: new service area features, the value of coupons, the dangers of using multiple Google Place pages and the quality of location check-ins from FourSquare and Gowalla.

While creating an effective Google Places page is important, keep in mind that Google wants to display the most relevant and engaging content to searchers. In addition to having a quality Google Places listing, your website should be full of useful information and have lots of natural links from local sources (i.e. links from within blog posts and articles – rather than artificial links from directories).

You can read more about Google Places listings here, or read the full 2010 Local Search Ranking Factor survey.

Google Local listings are now displayed at the top of the regular search results for location-specific searches. They appear as a combination of a local Google Map with business locations identified on the map with business listings posted to the right (see graphic below). For most local business searches in Vancouver, the Google Local map and listings will appear before the regular search results, which is why you need your business to be listed in the Google Local listings.

The Google Local listings as they appear for "vancouver pizza"

To get your business properly listed in Google Local you need to add your business’s information to the Google Local Business Center. You have the option to provide your address, hours of operation, photos of your business, information on your products, and contact information. The more information you provide the better.

To see an effective example of how a company has used Google Local look at the Tartine Bakery website in San Francisco.

You should also sign up for a Google Webmaster Tools account where you can specify the geographical location of your business. To rank high in Google Local it is important to write a clear and concise description of your business that includes some of your major keywords. Additionally, the five categories that you choose to describe your business should also include the specific keywords you have identified to drive traffic to your website.

It can be useful to use the coupons feature to offer discounts or special promotions to people who view your business listing.  You can also provide a link from your website’s contact page to your Google Local listing and offer incentives for your customers to provide reviews of your businesses. The websites that have more reviews will rank higher and have an advantage over their competition.

For more information on Google Local watch this informative video:

Other local search engines that may be valuable:

Yahoo! Local – Offers free listings on the Yahoo local search results.

MapQuest – Offers free listings. Works similar to Google Maps.

InsiderPages.com – Offers free and paid listings. It allows people to find business through the recommendations of friends.

Yelp.com – Free and paid listings. Users provide reviews of businesses.

Local.com – Free and paid listings. Works as a search engine for local business, products and services.

YellowPages.com – Free and paid listings. This is an important site to have your business listed on since Google gives higher rankings to businesses in the Yellow Pages.
sites.

CanPages – Free and paid listings for Canadian businesses. Similar to the YellowPages.

Get Listed – A free service to list your business and increase your ranking on major search engines.