Finally, yesterday Google added an option where you can set the location of your website.
Login to The Google Webmasters Tools and choose “Set geographic target”. It is always nice to help Google and to tell Google more about your site.
Geolocation is used in both overall ranking (Google shows more german search results to german searchers etc) and local ranking (option “pages from Germany”). TLDs like .DE, CO.UK etc do not cause any problems to Google. But with TLDs like .com, .net etc Google cannot clearly associate a geolocation. So go and help Google know more about your site(s) and get better ranking!
@ Google: Please provide an API (or some kind of ping service like you did for sitemaps) for that so that this could all be automated instead of entered manually in Webmaster Tools. And please, we want more local goodies! TY!
*** UPDATE ***
The official BlogPost is now here btw.
advertisingGoogle is always committed towards helping more sites and users get better and more relevant results.
Yeah….
geolocation Google local search Local web Miscellaneous Pagerank Search engines SEM SEO 
