Doing location based SEO is easier than ever. In fact for the most part Google strives to provide location based results. We used Bethlehem, PA as an example in this article.
Google especially likes when you are searching from a mobile device equipped location services.
Years ago, when you searched for something on your desktop via Google you would get at best a general location. Perhaps a region, or at best a city level. However today the location on your phone tells one that they are on Route 22 West near the 512 exit. Next thing you know ads for the Lehigh Valley Mall start showing up, along with organic results for the next 3-4 exits ahead.
Mom and Pop stores that have locations in the next few exits ahead jump ahead in the results, beating national brands and all of a sudden you see results for a tiny coffee shop rather than Starbucks.
That’s how location services and search basically works. It’s not 100% there yet, but it’s at least 90% there. We’re seeing instances of it based on direction and heading rather than just location. This is a noticable improvement over just location, especially the 4 mile radius around you, in which 2 of those miles are behind you (IE: you already passed that exit).