Recently both Google and Yahoo released new local search capabilities. In yahoo's case it indicated that it was definitely moving in the direction of replacing the yellow pages. Yahoo feels it can offer much more to it's users. It can provide a map with directions, the phone and fax numbers and a web page or web site that the business owns.

According to Yahoo their research shows that internet users look for information on the internet and then look for a local place to purchase the item or service.

The Yahoo developers are apparently drawing on existing yellow pages information as well as local experts and their own smart pages to build the local search information. Combined with maps and directions they hope users will find all the information they need on the internet to buy from or visit local businesses.

For the small business owner it looks like this will be a good thing. If you have or are developing a web site or page about your business you will be able to arrive on your customers desk top or cell phone screen with all the information you can provide about your product or service. The potential customer will then be provided with a map and directions to your location. Yahoo is offering its mobile local search for selected cell phone providers.

When you think about local search and how it can benefit small business you have to view it's benefit to the potential searcher. Who are the people who will use it and how can your small business get the rewards?

The cell phone aspect brings to mind a business traveler in or near your area who needs anything from gas for the car to a pizza for lunch. They might also need a copying place to fax documents or make copies. They might need a motel for the night.

In the same type of category is the person who may be planning a visit for fun and or recreation. They want as much local information as possible. Good prices on hotels, restaurants, shops and attractions. The travel web sites, Travelocity, Hotels. com and Price Line. com have begun to expand into this type of information but their main business is to sell hotel rooms so they limit themselves on the local area information. This is where Yahoo and Google come in and offer all the information you can handle. Why? so you will begin to go to them first.

Another potential local search user is the person who is seeking local information as it relates to history, or their own family genealogy. The internet has made the search for your heritage much easier and many people are taking advantage of it. Scholars of course use it but average people seeking their roots are also looking for more and more ways to refine their searches.

Finally there are the locals themselves, looking for a new dry cleaner , a flower shop that sells English ivy or even someone who wants to buy or sell a used item. Classified ads in local newspapers are a large source of revenue, but think about a local search that allows ads for used items. Household products, clothes, power tools, garden equipment. Unlike Ebay, no shipping costs to pay. Another search locals themselves might use is a search to find out what is going on in their area. Festivals, special events, concerts, store sales.

The question now is what will it cost for small businesses to take part. Right now Yahoo and Google are drawing on their in house information to provide search results. So basically if you are in their index or directory, and have local information on your web site you will most likely show up in local search results. But test marketing the local search in some cities is being based on bids for various neighborhoods as defined by so many square blocks. So it looks like you will eventually be competing against your own local market. This is where a clever local can get the jump on his competition, if he uses internet skills. If you have a local business setup your web page or site and include a customer review/feed back section. Let your customers provide testimonials or award stars for your performance. Keep those up-to-date and posted on your web site. That will offer your prospective customers immediate ratings for your product or service and your competition may not be so forward thinking. Your business can stand out as one with good buzz. If you were a potential customer, who would you choose? the business with the reviews and ratings, or one without?

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