Quick Answer: Local AEO combines Google Business Profile optimization, LocalBusiness schema, review optimization, and location-specific content to win AI citations for "near me" and local-intent queries. Local businesses with strong AEO foundations consistently appear in Google AI Overviews and ChatGPT local recommendations.

Local AEO is one of the highest-ROI AEO categories because the competitive set is small (only nearby businesses qualify) and the buyer intent is high. A local business that ships a serious local AEO program can dominate AI citations in their service area within 60-90 days.

What does local AEO actually optimize for?

Three primary surfaces:

  • Google AI Overviews for local-intent queries ("best dentist in Austin")
  • ChatGPT and Perplexity local recommendations
  • Voice search local answers (Google Assistant, Siri, Alexa)

The 8-step local AEO playbook

  1. Optimize your Google Business Profile fully. Complete every field, add photos weekly, post updates regularly, and respond to every review.
  2. Implement LocalBusiness schema with full address, hours, geo coordinates, and contact info on every location page.
  3. Build location-specific landing pages for each service area with location-named H1, local FAQs, and area-specific content.
  4. Earn quality local reviews at a steady cadence — 1-3 new reviews per week is healthy for most local businesses.
  5. List in major local directories (Yelp, Bing Places, Apple Maps Connect, BBB) with consistent NAP (name, address, phone).
  6. Add FAQPage schema with local-intent questions ("Do you offer same-day appointments?", "What insurance do you accept?").
  7. Deploy llms.txt and AGENTS.md with location and service area information clearly documented.
  8. Track local AI Overview citations using AEO tools that support geo-segmented monitoring.

What about multi-location businesses?

Multi-location and franchise brands need a structured approach: a master brand entity, location-specific schema and pages for each location, and a centralized review and content strategy. Done well, multi-location AEO can dominate entire metro areas.

For agencies that specialize in local AEO, see our Local Business AEO category.