In more detail
When Google decides a search has local intent, it often shows a map and a short list of businesses above or among the regular results. Selecting "more places" opens the full list in Google Maps. The businesses shown come from Google Business Profile listings, not from websites directly, although a website can contribute to how prominent a business appears.
Google's help article on improving your local ranking names three main factors:
- Relevance: how well a profile matches the search, influenced by categories, services and description
- Distance: how far the business is from the searcher, or from the place named in the search
- Prominence: how well known the business is, including reviews, ratings, links, articles and directories
Because distance plays a part, local pack results can differ street by street. Someone searching from one suburb may see different businesses from someone a few kilometres away. A single "ranking" for a local search doesn't tell the whole story.
Ads can also appear in or above the local pack, labelled as sponsored.
Why it matters when hiring an agency
For local service businesses, the local pack often brings more calls and visits than regular results. Ask agencies how they'll measure local visibility: good answers involve tracking from several locations across your service area, not a single rank from the agency's office.
Ask what they'll change. Credible work focuses on accurate profile information, the right categories, genuine reviews, local content on your website and consistent business details. Avoid anyone offering fake reviews, keyword-stuffed business names or fake addresses. These break Google's guidelines and can get a profile suspended.