Understanding How Google Ranks Local Businesses 

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If you’ve ever wondered why your competitor appears on Google Maps while your business lingers in digital obscurity, you’re not alone. Many Western Australian businesses struggle with local visibility—not because they’re bad at what they do, but because they don’t fully understand how Google decides who gets shown first. 

The truth is, local search rankings aren’t random. Google follows a clear set of principles to rank local businesses in search results, especially in the local map pack. In this guide, we’ll break down those ranking factors in plain English and show you how to use them to your advantage. 

Whether you run a bakery in Albany, a law firm in Osborne Park, or a landscaping business in Geraldton, this post is for you. 

Why Local Search Rankings Matter 

Before we dive into how Google ranks businesses, let’s quickly recap why local SEO matters

When someone searches for a service on Google—say, “accountant near me”—the results they see are tailored to their location. Google highlights the top three businesses in the Local Pack, often displayed above the regular organic listings. This includes: 

  • Business name 
  • Star rating 
  • Address and hours 
  • Directions and contact buttons 

If you’re not in that top three, you’re missing out on valuable local leads—many of whom are ready to act immediately. Local SEO isn’t just about traffic—it’s about being seen when it counts most. 

The Three Pillars of Google’s Local Ranking Algorithm 

Google’s local search algorithm is based on three core factors: proximity, relevance, and prominence. Let’s unpack each one and see how you can improve your standing. 

1. Proximity: How Close Are You to the Searcher? 

This is the most straightforward factor. Google prioritises businesses that are geographically close to the person searching. If someone in East Perth searches for “coffee shop”, Google isn’t going to show results in Fremantle—even if they’re brilliant coffee shops. 

What You Can Do: 

  • List your correct business address everywhere online—website, Google Business Profile (GBP), social media, and directories. 
  • Use suburb-based keywords on your website and in your business descriptions. 
  • If you serve multiple locations, create dedicated service area pages for each one. 

Remember: Google can’t show you as “nearby” if it doesn’t know where you are. 

2. Relevance: Does Your Business Match the Search? 

Relevance refers to how well your business information matches what someone is searching for. If someone types “roof repairs Armadale” and your business is listed as a “builder” with no mention of roofing services or Armadale, Google might overlook you—even if you offer exactly that. 

What You Can Do: 

  • Be specific with your services on your website and Google Business Profile. 
  • Include targeted keywords related to your services and location: “roof repairs in Armadale” rather than just “roofing.” 
  • Keep categories accurate on GBP. Don’t just use “contractor”—choose specific terms like “roofing contractor,” “landscaper,” or “family dentist.” 

The more clearly your content matches a user’s intent, the better your relevance score. 

3. Prominence: How Well-Known Is Your Business Online? 

Prominence measures how reputable and established your business appears across the web. Think of it like your digital footprint. Google wants to highlight businesses that others already trust and talk about. 

Key Prominence Signals Include: 

  • Google reviews (number, quality, and frequency) 
  • Citations (mentions of your business name, address, and phone across directories) 
  • Backlinks from other websites 
  • Mentions in news articles, blogs, and forums 
  • Activity and engagement on your GBP (posts, Q&As, updates) 

What You Can Do: 

  • Actively ask for Google reviews from happy clients. More reviews = more trust. 
  • Get listed in local directories like Yellow Pages, True Local, and StartLocal. 
  • Partner with local blogs or community websites for backlinks. 
  • Keep your Google Business Profile active—post updates, events, or offers regularly. 

Think of prominence as your business’s “digital reputation.” The more you’re talked about, the more visible you become. 

Bonus Ranking Factors You Shouldn’t Ignore 

Aside from the core three, there are a few other behind-the-scenes ranking signals that can help (or hurt) your local SEO performance: 

A. NAP Consistency (Name, Address, Phone) 

If your details differ across platforms—say, “Level 1” in one place and “Lvl 1” in another—it confuses Google’s crawlers. Always use the same format for your name, address, and phone number. 

B. Website Quality and Mobile Usability 

Your website plays a big role in reinforcing your credibility: 

  • Make sure it’s mobile-friendly 
  • Load times should be under 3 seconds 
  • Use clear headings and a logical structure 
  • Include contact info on every page 

A clunky, outdated website sends the wrong signals—not just to users, but to Google too. 

C. Local Schema Markup 

Schema markup is structured data added to your website’s code that helps Google understand your business better. Local schema includes your business type, hours, location, and more. It can also lead to enhanced listings in search results (e.g. star ratings, FAQs, etc.). 

Final Thoughts: Visibility Isn’t Luck—It’s Strategy 

If your WA business isn’t getting found in local searches, it’s not bad luck—it’s just a matter of alignment. Google rewards businesses that show: 

  • They’re nearby 
  • They match what people are searching for 
  • They’re trusted by the community 

Understanding how Google ranks local businesses is the first step. Implementing that knowledge with consistency and care is what gets results. 

So if you’ve been scratching your head wondering why the bloke down the street is getting more leads—it might just be time to level up your local SEO