Robert_Charlton - 7:43 am on Apr 9, 2012 (gmt 0)

The distinction makes sense as far as it goes... but I think that both types of information are necessary in a directory for Google to rank a local directory organically for either the "placename business-type" searches or for the "placename business-name" searches.

Local directories that offer reviews and other unique information are necessary to add value to business name-specific searches. These directories include pages devoted to the individual businesses, which are expected to be searched for by name. Think "Yelp", etc. These are the directories which offer unique information and which Google is most likely to rank for name-specific searches.

Generally, I find that these are the directories that also rank for business type or category searches. If you expect a directory to rank in competitive search, it will need to be a well-structured directory that offers both types of content.

Google does not want simply database sorts of information that everybody has. For "placename business-type" searches, Google prefers to return local business websites or Place Pages instead of all but the most useful directory sites.

How many of each type will rank depends on what's available in a given geo-area. Google will generally give preference in its organic rankings to locally based sites.