Local SEO has always been about visibility, but the landscape is changing quickly.
Google’s local algorithm and the introduction of AI Overviews are reshaping how businesses show up in search results. Let’s break down the key factors and what they mean for your strategy.
The Core Local Ranking Factors
Google’s local algorithm decides which businesses appear in the local pack, the local finder, and localized organic results. While the exact formula is secret, years of studies and expert surveys have revealed the main ingredients:
- Google Business Profile signals (relevance, distance, and prominence)
- On-page content that includes location keywords and NAP info
- Citations (the number and consistency of business listings across the web)
- Reviews (quality, quantity, and recency)
- Links pointing back to your site
These categories all work together to help Google trust your business information and determine where you should rank.
Why Citations Still Matter
Citations are essentially online references to your business information, such as listings on directories. They’ve long been considered table stakes in local SEO. Having strong, consistent citations won’t guarantee a number-one spot, but without them, your chances of ranking drop significantly.
Quality also matters more than quantity. A few accurate listings on trusted sites are more powerful than dozens of weak or inconsistent ones. If your name, address, and phone number don’t match across platforms, it can actually hurt your local visibility instead of helping it.
Reviews: The Double Impact
Reviews influence both how Google ranks you and how people choose you. Google has confirmed that review count and star ratings are factored into local rankings.
Think about it: a business with 500 reviews and a 4.5-star average is going to look more credible than one with only five reviews and a 3.5-star average. Research consistently shows that reviews are among the top five local pack ranking factors.
Even if you’re not in the top spot, a strong review profile can drive clicks. That’s why managing reviews, asking for new ones, and responding to them pays off in both visibility and conversions.
Enter Google’s AI Overviews
One of the newest developments in local SEO is the rise of AI Overviews. These generative AI summaries now appear at the top of many search results, often before the local pack or organic listings.
Studies in 2025 showed that anywhere from 40% to 68% of local searches returned an AI Overview. That means a growing number of users are seeing AI-generated summaries before they even reach traditional results.
How Citations and Reviews Influence AI Overviews
When building an AI Overview, Google often pulls data from trusted sources like Yelp, TripAdvisor, and other major directories. If your business has a strong presence on these platforms, you’re more likely to be included. If not, you risk being left out entirely.
For example, if someone searches “best pizza in [City],” the AI Overview might list three highly rated spots based on reviews and consistent citations. If your info is scattered or outdated, you won’t make the cut, even if you have a decent website.
Content Still Plays a Role
AI Overviews don’t just rely on reviews and citations. They also pull from high-quality, informative content. That means creating blog posts, FAQs, and resources that answer common questions in your industry can increase your chances of being cited by AI.
The Bottom Line
Google’s local algorithm still values the basics: citations, reviews, and relevant content. But now, those same elements influence whether your business appears in AI Overviews as well.
To stay competitive:
- Keep your citations accurate and consistent
- Actively manage and respond to reviews
- Publish helpful content that answers customer questions
The businesses that invest in these areas will not only rank in traditional local search but also stand out in AI-driven results.
📈 Don’t get left out of AI Overviews. Get a free Local Visibility Audit from our team and see where you stand.
