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Writer's pictureAilane Joy Ferrer

Why Google’s Vicinity Update Shook Multi-location Businesses—And What You Can Do About It



If you run a business with multiple locations, listen up—Google’s Vicinity update might’ve hit you where it hurts: in the rankings. In December 2021, Google rolled out one of its biggest local search algorithm changes to date, shaking up how businesses rank based on their proximity to searchers. And guess what? It’s making waves—especially for multi-location businesses (MLBs).


Let’s break down what’s happening and why it’s the hot topic for digital marketers right now.


The Two Big Targets of the Vicinity Update


Google’s been tweaking local search to focus on two major things:


  1. Proximity as a ranking factor: Google’s now emphasizing businesses that are physically closer to the searcher. Before, you could rank across a larger geographic area, but Vicinity tightens that circle.

  2. Cracking down on keyword stuffing in business names: No more sneaky SEO hacks by stuffing your Google Business Profile (GBP) name with keywords like “Best Pizza Chicago.” Google's on to that game.


What’s the takeaway here? If your business was dominating search across a wide area, you're probably feeling the pinch.


Multi-location Businesses Are Feeling the Burn


According to a poll we conducted, 38% of multi-location businesses have reported drops in rankings since the update. One business owner nailed it when they said: “The Vicinity update has really narrowed down our ability to rank well further from our location center.”


If you’re managing several locations, especially in high-competition areas, you’re probably seeing fewer of those sweet top-three spots in local search results. It's a hard pill to swallow, but it's not all doom and gloom—some smaller businesses are celebrating as they get a fairer shot in local rankings. As one SEO expert said, “It’s benefited smaller, struggling companies, while reducing spam.”


Small Businesses Are Split


Interestingly, our survey showed that for small businesses, it’s a 50/50 toss-up. Some report positive impacts—especially those in low-competition markets—while others, particularly in more crowded niches like real estate, are feeling the squeeze. Still, 55% of small businesses saw no change at all. So, whether you're soaring or sinking depends largely on your industry and local competition.


Agencies and Freelancers: Not Sweating It


For agencies and freelancers managing local SEO, things look a bit different. Only 3% saw greatly improved rankings, but a comfortable 55% didn’t notice much of a shift at all. It’s no surprise that this crowd is keeping a close eye on the update. One agency rep told us: “It’s still too early to tell. The tighter circle can help and hurt depending on where you are.”


And isn’t that the truth? Google’s update isn’t a one-size-fits-all, but it’s definitely got the SEO world buzzing.


So, What’s Next?


If you’ve got multiple locations, this is the perfect time to audit your local SEO strategy. Here’s what to focus on:


  1. Double down on proximity: Make sure each location’s Google Business Profile is optimized for the exact areas you serve. If you’re running ads, hyper-targeted local ads may help balance things out.

  2. Stop keyword stuffing: If you’ve been jamming keywords into your business name to rank, it’s time to cut that out. Keep your GBP name clean and legit.

  3. Encourage reviews: Want to stand out? Push for more local reviews. That credibility can give you a real boost in Google’s eyes.


And remember—change brings opportunity. While multi-location businesses might’ve been dealt a tough hand, small businesses can take this as a chance to step up and get in the game.


In a digital world where visibility is everything, GMB Fox ensures your business isn’t just online—it’s the first choice customers make. Let us handle the complexities of digital marketing, so you can focus on what truly matters: growing your business.

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