The week of February 16th Google made a dramatic change in how it determines results for branded searches by location.

Earlier this month, changes in the Google algorithm moved in favor of big business across all industries by displaying corporate websites at the top of organic results for geo-targeted, branded searches.

Over 90% of regional and national brands DO NOT optimize pages for cities and states and often cede traffic to direct and indirect competitors.  Instead they use dynamic store locator pages that perform poorly if at all in the organic results of search engines for geo-targeted searches.

Let’s review an example.  Below is a screenshot of the results for the Google search “Physicians Mutual Austin,” taken on February 13th.

Google search, “Physicians Mutual Austin,” February 13th

This screen shot displays Oodle.com as the top result.  In fact, PhysiciansMutual.com did not rank on the first page of Google results for the search “Physicians Mutual Austin” prior to the week of February 16th.

Here is a screenshot of the results for the same search query since the Google update:

Google search, “Physicians Mutual Austin,” February 26th

The reason I know the Google update occurred the week of February 16th, is because we discovered the changes while reviewing client ranking reports on Thursday, February 19th.  This was also confirmed by a client (brand marketing manager) inquiring about the changes that afternoon, which led me to research this across multiple industries.

Let’s review some additional examples.  Below is the screenshot for the Google search “Wells Fargo Tucson,” taken on February 26th.  Two weeks ago WellsFargo.com did not rank on the first page of results for the search query “Wells Fargo Tucson.”

Google search, “Wells Fargo Tucson” 

The same holds true for branded searches by state.  Below is the screenshot for the Google search “Kay Jewelers Pennsylvania,” taken on February 26th.  Two weeks ago Kays.com did not rank on the first page of results for the search query “Kay Jewelers Pennsylvania.”

Google search, “Kay Jewelers Pennsylvania” 

Another example of a brand that did not rank for geo-targeted searches a couple weeks ago is Farmers Insurance.  Below is the screenshot for the Google search “Farmers Insurance Houston,” taken on February 26th.

Google search, “Farmers Insurance Houston” 

What is the “net” effect of this change?  For one, it provides more relevant results to the prospective searcher.  If they are searching for “Farmers Insurance in Houston,” it certainly makes sense that the Farmers.com website ranks at the top of organic results.

Secondly, the brands that rely on paid search ads for their geo-targeted searches (instead of optimizing pages for the organic results), in competitive markets, may experience lower PPC costs due to the conversions of organic listings.

Is there any downside to this change?  Very little.  If I can come up with one downside it is the fact that Google is now placing the home page above geo-targeted pages for those brands that actually optimize pages for city and state specific searches.

One example of this is Jiffy Lube.  Jiffy Lube has empowered their franchisees with market-specific microsites such as Jiffy Lube oil change Atlanta, Georgia.

Below is the screenshot for the Google search “Jiffy Lube Atlanta,” taken on February 26th.

Google search, “Jiffy Lube Atlanta” 

Take note of the fact that the corporate home page, JiffyLube.com, is now ranking above the Atlanta microsite pages for the search “Jiffy Lube Atlanta.”  In this case Google is providing a less relevant page as the top result.

A final thought on this update.  Google proves once again that search engine results are a moving target. Brand marketers, search consultants, and interactive agencies need to be flexible, fluid, and responsive accordingly.

Author’s Note:  I did notice this change DOES NOT ring true for major restaurant brands like Pizza Hut or Subway.