Local search works best for the service provider, or a retailer that has numerous locations. While the search volume won't be as great as a non-regional phrase, the person who reaches your site will be a more targeted visit and most likely ready to convert.
As the fastest growing vertical in search, many people are now starting to recognize the value of local search engine optimization can have on their site traffic. Also known as regional search, it's basically geo-targeting your audience when they search.
Another happy accident in local search is that for sites that are well optimized may also pick up rankings in mobile search.
Yes, there are many other factors involved in getting your site to a top position. But this is the most powerful way as of this writing to get a top spot in Google. It's not just enough to have links pointing to your site, but you need to have your keyword "anchor linked" to your site. Anchor linking is when you use your keyword phrase as the click-able text for a link. So, instead of saying "Click Here", you would use "Widgets" as the link text.
Now, another point of consideration is determining what keyword/phrase you want to use to get your site found. Most times, people impulsively choose a one word phrase. While this would be a great way to bring traffic to your site, would it bring targeted traffic, with people looking specifically for your product or service? Most times when people type in a one letter keyphrase, they are in the beginning of their search.
