Great Article on local search.  Keep in mind that there has probably never been a better  tool in the history of mankind for local search than Compendium Blogware.

http://www.davidmihm.com/blog/google/real-problem-with-local-search/

There is a big big problem in the universe called "local".   How do local companies compete against global competitors and paradoxically.....How do global companies compete locally?

Some interesting quotes from this blog:

"The engines are not stupid. They KNOW that the big marketing dollars come in from the Fortune 500 chains with regional or local brick-and-mortar stores. Mom & Pop will never be able to compete in the $5.00/click world of PPC, yet users EXPECT to see local stores they recognize in their search results."
"They ALSO know users don't want to sort through Google's search results only to be directed five OTHER companies' OWN Local search results (like Yelp, InsiderPages, CitySearch, or sadly, Judy's Book). It's simply not in the engines' own interest to take people away from their OWN PPC ads and into someone else's set. That's lost revenue, and a poor user experience to boot."
(I love the above quote because so much attention is being paid to creating new 'destination' sites like directories or social networks....80% of all web vistits begin with a search)
"Local Search is the Second most popular online activity after email"
"60% of all local business searches now happen online (33% happen in print yellow pages)"
"Out of the 130 million monthly unique users of Yahoo last year, 116 million of them came to Yahoo with local intent."
"THE REAL PROBLEM WITH LOCAL SEARCH IS THAT SEARCH ENGINES AND LOCAL LISTING SITES AREN'T RETURNING RESULTS THAT USERS WANT TO SEE."

Anyway, good stuff, and great news for Small Business Bloggers.  Our studies show that 95% of local blogs rank in the top 10 Google search results. The key for the Small Business Blogging best practice is to leverage the keywords that drive your business and always add that local qualifier...your town, your region etc....

And of course Blogging for search engine optimization begins with easy to use blogging software.