This is an excellent overview of how your Google Local business information gets put together, courtesy David Mihm of Moz.

September 1, 2010

LDA - More Important than Inbound Links
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In probably the most important search ranking news in 2010, Ben Hendrickson of SEOmoz announced his findings yesterday at the SEOmoz PRO conference in Seattle.

He's discovered that LDA for a page vs. the search keywords has a higher correlation with rankings in Google than the number of unique IP addresses or unique domains linking to the page.

LDA (Latent Dirichlet Allocation) is a measure of how relevant a page is to a given search phrase by analyzing how often the search phrase is seen in documents that also contain elements of the text on the target page.  

This is earth-shattering news for the SEO community, as his findings indicate that real relevance of the on-page text to the search phrase is more important in the Google search ranking algorithm than links or anchor text.

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MaTn MaTn on November 25, 2012 4:42 AM
Even if they did find a correlation of .32, this shudoln't be a game changer Matt Cutts and others have been saying for years that the best SEO is to serve your user. I'm not going somewhere, or linking somewhere, if the content isn't any good.What will be interesting to see is how well Google will learn to pick up on artificial link profiles. If they get reeeeeally good, then on-site factors will become more important again because they'll be one of the few things that SEOs can change without getting in trouble.
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