Google is changing their search algorythms on a daily basis, and it's very important to keep up with everything, in order to have the upper hand when it comes to search engine optimization.

More & more people turn to local search results as part of their daily routine, and Google understands the need for localized information. Google launched 'Google Pages' about a year ago to assist people with what they call "more informed descisions" about where to go and what to do locally.
Google Places lists local businesses ranging from Doctors, Lawyers and Restaurants to your local Plumber. Inside Google Places, you will find Photos, Customer Reviews, General Business Information, and Cupons.

Google recently introduced 'Google Tags' into their Places service, allowing business owners to expand their listings. You can post a special offer regarding your listing - this gives local business owners an extra way to stand out on Google search results. Currently google charges $25 a month for their Tags service.

More and more search results include local results in them. This is expected, because people are trying to stand out in their own market. It makes more sense to target local customers rather than people located half a world away. This really relates to 'Brick & Mortar' type businesses located in and servicing a certain city.