I have a suggestion for Google: Can you optimize or increase the visibility of a genuine local advertiser's AD by letting searchers know that, for example, my ad is a REAL local business and not some corp paying top dollar? I think a few points should be given to people who actually do work in their local city. Many visitors prefer to work with a local business rather than one out of town or state. I know that Google puts a local advertiser's city name beneath the ad, but that's confusion to most searchers--what does this mean? Google needs to somehow improve the signage so searchers know that I am a genuine local business.
Just a suggestion.
There are lots of big time webdesign companies based in Chicago, New York, etc that target all cities (etc "#*$! webdesign") and they use my city name so people think they are in my city. Then they bid like $7 a click. I'm not paying that. To make matters worse they copied my ad so now I have to keep thinking of another one. Whatever works, they just copy from me.
All I am saying is that it would be nice if Google had a way to show searchers that I am a REAL local business, not some shop in Chicago advertising that they are a XX city shop.
It's obvious from my experience with both AdWords and AdSense that Google thinks I am located in a certain large U.S. City, where my ISP has a large presence, yet that city is 200+ miles from my location.
My point is, Google may not be able to determine with any degree of accuracy where a visitor is located and thus not able to correctly show local ads, regardless of how well you word the ads or manage to get the big companies blocked.
FarmBoy
This may seem like an outrageous expense to you but it's not as bad as you think - check it out.
Use geographic targeting - this adds the 5th line of ad text.
Use local business ads - these will show on maps.google.com.
Use regional lingo in the ad copy (and keywords). These will stand out from the standard 'city industry' ads with something equally compelling to the location of the searcher.