Google has been testing its local search for a while while Overture has recently launched its own version. Overture actually claims half-a-mile radius vs. Google's 20-mile radius. Good news for micro-businesses but I see tremendous new growth opportunities for small businesses if you can just find innovative ways to exploit this. When a large portion of search will become local, you want to make sure that you are also found in those searches. Here are some possible ideas:
When Laconia, NH holds its motorcycle rally, local businesses have a difficult time fulfilling demand for all kinds of products and services. If you are a regional car rental company with no offices in Laconia, how about creating a creative marketing campaign to attract all those renters who would be interested in car rentals while visiting Laconia? When international visitors descend in a small town in upstate New York for a conference organized by a local university, what can you market to them if you are based in California? Interpreters, takeout cuisines from other countries, local sightseeing tours, etc?The choices can be enormous. So think creatively and market locally...
Recommended link: Exploiting local search marketing for growth