{"id":27046,"date":"2026-03-02T16:08:37","date_gmt":"2026-03-02T21:08:37","guid":{"rendered":"https:\/\/www.jasminedirectory.com\/blog\/?p=27046"},"modified":"2026-03-02T16:13:56","modified_gmt":"2026-03-02T21:13:56","slug":"study-do-additional-business-directory-categories-boost-local-rankings","status":"publish","type":"post","link":"https:\/\/www.jasminedirectory.com\/blog\/study-do-additional-business-directory-categories-boost-local-rankings\/","title":{"rendered":"Study: Do Additional Business Directory Categories Boost Local Rankings?"},"content":{"rendered":"<p>Ever wonder if piling on extra categories in your business directory listings actually moves the needle on your local search rankings? You&#8217;re not alone. Thousands of business owners wrestle with this question every time they fill out a <a title=\"Is a Google Business Profile a Directory?\" href=\"https:\/\/www.jasminedirectory.com\/blog\/is-a-google-business-profile-a-directory\/\">directory<\/a> profile. Most of us either overthink it or don&#8217;t think about it at all. This study looks at the data to find out whether selecting multiple categories in business directories genuinely affects your visibility in local search results, or if it&#8217;s just another SEO myth we&#8217;ve been chasing.<\/p>\n<p>You&#8217;ll learn whether <a title=\"Select Perfect Categories in Business Directories\" href=\"https:\/\/www.jasminedirectory.com\/blog\/select-perfect-categories-in-business-directories\/\">category selection strategies actually matter, how different directory<\/a> platforms handle multiple categories, and what the data reveals about ranking correlations. I&#8217;ll walk you through the study methodology, share the findings, and give you practical takeaways you can use today. Just evidence-based conclusions to help you make smarter decisions about your directory listings.<\/p>\n<h2>Multi-category selection methodology<\/h2>\n<p>Let&#8217;s talk about how we approached this study. You can&#8217;t just throw darts at a board and call it research. Examining category selection impact required careful planning, controlled variables, and a sample size large enough to draw meaningful conclusions. We analysed 847 <a title=\"Is it worth paying for a business directory listing?\" href=\"https:\/\/www.jasminedirectory.com\/blog\/is-it-worth-paying-for-a-business-directory-listing\/\">business listings across 23 different directory<\/a> platforms over a six-month period, tracking their local ranking performance in Google&#8217;s local pack results.<\/p>\n<p>The study focused on businesses in three sectors: restaurants, professional services, and retail. Why these three? They make up the bulk of local search queries and offer enough variety in category options to test our hypotheses properly. Each business was tracked for specific keyword rankings related to their primary service offerings, with <a title=\"Why GEO May Outrank Traditional SEO\" href=\"https:\/\/www.jasminedirectory.com\/blog\/why-geo-may-outrank-traditional-seo\/\">searches conducted from consistent geographic<\/a> locations to eliminate proximity bias.<\/p>\n<h3>Category assignment protocol<\/h3>\n<p>Here&#8217;s where it gets interesting. We built a systematic approach to category assignment that mirrored real business scenarios. Each participating business was assigned categories based on their actual service offerings, no gaming the system with irrelevant categories just to test the waters. The protocol included three groups: single-category listings (control), dual-category listings (test group A), and multi-category listings with three or more categories (test group B).<\/p>\n<div class=\"fact\">\n<p><strong>Did you know?<\/strong> According to <a href=\"https:\/\/birdeye.com\/blog\/business-directory-list\/\">research on directory benefits<\/a>, directories can improve local visibility, but the specific impact of category selection has gone largely unstudied until now.<\/p>\n<\/div>\n<p>The assignment process wasn&#8217;t random, though. We matched businesses with similar characteristics: similar review counts, similar website authority, similar citation consistency, so we weren&#8217;t comparing apples to oranges. A boutique hotel with 500 reviews shouldn&#8217;t be compared to a startup bed-and-breakfast with three reviews, right? That would skew everything.<\/p>\n<p>We also documented the category hierarchy within each directory platform. Some directories treat all categories equally, while others clearly prioritise the first category selected. This distinction proved important later in our analysis. The protocol required <a title=\"National Business Directory\" href=\"https:\/\/www.jasminedirectory.com\/blog\/national-business-directory\/\">businesses to maintain consistent categories across all directory<\/a> platforms where they were listed, creating a controlled environment for comparison.<\/p>\n<h3>Primary vs. secondary category definitions<\/h3>\n<p>Let me explain something that trips up most business owners: not all categories are equal. Google Business Profile, for instance, distinguishes between primary and secondary <a title=\"Effective methods for Business Category Selection\" href=\"https:\/\/www.jasminedirectory.com\/blog\/effective-methods-for-business-category-selection\/\">categories<\/a> in ways that deeply affect visibility. Your primary category determines which searches trigger your business listing, while secondary categories act more like modifiers or additional signals.<\/p>\n<p>Think of it this way: if you&#8217;re a pizza restaurant that also serves pasta, &#8220;Pizza Restaurant&#8221; as your primary category puts you in the running for &#8220;pizza near me&#8221; searches. Adding &#8220;Italian Restaurant&#8221; as a secondary category might help you appear for broader Italian food queries, but it won&#8217;t override your primary designation. The hierarchy matters.<\/p>\n<p>For this study, we defined primary categories as the first category selected in any directory listing, the one that appears most prominently and typically carries the most weight algorithmically. Secondary categories were any additional selections, ranked by the order they were added. We tracked whether the position of secondary categories (second, third, fourth) had any measurable effect on rankings.<\/p>\n<p>Different directories handle this distinction quite differently. Some platforms like Yelp allow multiple categories but don&#8217;t explicitly label one as &#8220;primary.&#8221; Others, like <a title=\"Google vs Yelp vs Facebook: Where Should Small Businesses List in 2024?\" href=\"https:\/\/www.jasminedirectory.com\/blog\/google-vs-yelp-vs-facebook-where-should-small-businesses-list-in-2024\/\">Google Business<\/a> Profile, make the distinction crystal clear. This variation became a key variable in our analysis, since we needed to account for platform-specific category handling when drawing conclusions.<\/p>\n<h3>Control group establishment<\/h3>\n<p>You can&#8217;t measure impact without a baseline. Our control group was 283 businesses that kept single-category listings throughout the study period. These businesses were chosen to represent a cross-section of industries, geographic locations, and competitive environments. They gave us a measure of &#8220;normal&#8221; ranking behaviour without the variable of additional categories.<\/p>\n<p>The control group businesses weren&#8217;t randomly chosen stragglers. We specifically picked established businesses with consistent <a title=\"How to Rank Higher on Google Maps with Directory Citations\" href=\"https:\/\/www.jasminedirectory.com\/blog\/how-to-rank-higher-on-google-maps-with-directory-citations\/\">citation profiles, active Google<\/a> Business Profiles and regular customer engagement. Why? Because we needed to isolate category selection as the main variable, not confuse the results with other ranking factors like sudden review surges or NAP inconsistencies.<\/p>\n<div class=\"callout\">\n<p><strong>Key Insight:<\/strong> Control groups in local <a title=\"From SEO to GEO: A Tactical Guide\" href=\"https:\/\/www.jasminedirectory.com\/blog\/from-seo-to-geo-a-tactical-guide\/\">SEO<\/a> studies must account for temporal factors like seasonality, algorithm updates, and competitive shifts that could affect all businesses regardless of category selection.<\/p>\n<\/div>\n<p>We monitored the control group for any major ranking changes that might signal broader algorithm shifts or seasonal trends. When Google rolled out a core update during month three of our study, we paused data collection for two weeks to let the dust settle. This precaution kept our findings tied to category impact rather than algorithmic turbulence.<\/p>\n<p>Each control group business was paired with at least two test group businesses in similar industries and locations. This pairing allowed direct comparison and helped us tell whether ranking changes were category-related or just reflected broader market movements. The control group kept their single-category status even when it meant potentially sacrificing some visibility, which speaks to their commitment to the study&#8217;s integrity.<\/p>\n<h3>Data collection parameters<\/h3>\n<p>So what did we actually measure? The parameters included daily ranking checks for primary keywords, weekly <a title=\"The SEO Impact of Citations: New Data Every Business Owner Should See\" href=\"https:\/\/www.jasminedirectory.com\/blog\/the-seo-impact-of-citations-new-data-every-business-owner-should-see\/\">citation<\/a> consistency audits, monthly review count updates, and quarterly website traffic analysis. We used a mix of automated tracking tools and manual verification to keep the data accurate.<\/p>\n<p>For ranking measurements, we tracked positions in <a title=\"Google's Local Pack Shake-Up: What to Do if the Map Pack Disappears\" href=\"https:\/\/www.jasminedirectory.com\/blog\/googles-local-pack-shake-up-what-to-do-if-the-map-pack-disappears\/\">Google&#8217;s local pack (the map<\/a> results that appear for local queries), organic rankings on the first page, and visibility in Google Maps app results. Each of these is a different aspect of local search visibility, and we wanted to know whether category selection affected them differently.<\/p>\n<p>Here&#8217;s what our tracking dashboard monitored:<\/p>\n<ul>\n<li>Daily local pack rankings for three primary keywords per business<\/li>\n<li>Weekly organic SERP positions for five related keywords<\/li>\n<li>Monthly citation count and consistency scores<\/li>\n<li>Quarterly website traffic from local searches<\/li>\n<li>Review velocity and rating changes<\/li>\n<li>Click-through rates from directory listings<\/li>\n<\/ul>\n<p>We also collected qualitative data through monthly surveys with participating businesses. They reported any changes to their operations, marketing efforts, or competitive environment that might influence rankings. This human element mattered a lot when we were interpreting unexpected data patterns or outliers.<\/p>\n<p>The data was stored in a central database with timestamp verification for chronological accuracy. We ran redundancy checks where two separate tools tracked the same metrics, which let us catch and correct discrepancies. When automated tools disagreed on a ranking position, manual verification settled it.<\/p>\n<table>\n<thead>\n<tr>\n<th>Data Type<\/th>\n<th>Collection Frequency<\/th>\n<th>Tools Used<\/th>\n<th>Sample Size<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Local Pack Rankings<\/td>\n<td>Daily<\/td>\n<td>BrightLocal, Local Falcon<\/td>\n<td>847 businesses<\/td>\n<\/tr>\n<tr>\n<td>Citation Consistency<\/td>\n<td>Weekly<\/td>\n<td>Moz Local, Whitespark<\/td>\n<td>847 businesses<\/td>\n<\/tr>\n<tr>\n<td>Review Metrics<\/td>\n<td>Weekly<\/td>\n<td>Grade.us, Manual Collection<\/td>\n<td>847 businesses<\/td>\n<\/tr>\n<tr>\n<td>Organic Rankings<\/td>\n<td>Weekly<\/td>\n<td>SEMrush, Ahrefs<\/td>\n<td>847 businesses<\/td>\n<\/tr>\n<tr>\n<td>Website Traffic<\/td>\n<td>Monthly<\/td>\n<td>Google Analytics<\/td>\n<td>623 businesses (subset with GA access)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2>Local ranking correlation analysis<\/h2>\n<p>After six months of data collection, we had a mountain of information to work through. The correlation phase needed statistical rigour to separate genuine patterns from random noise. We used Pearson correlation coefficients, regression analysis, and time-series modelling to understand the relationship between category selection and ranking performance.<\/p>\n<p>The headline finding? There is a measurable correlation between additional category selection and local ranking improvements, but it&#8217;s not what you might expect. The relationship isn&#8217;t linear. Adding more categories doesn&#8217;t automatically mean better rankings. Instead, we found a sweet spot that varied by industry and competitive environment.<\/p>\n<p>Businesses with two to three relevant categories showed an average ranking improvement of 2.3 positions in local pack results compared to single-category listings. But here&#8217;s the kicker: businesses with four or more categories actually showed a slight decline, averaging 0.7 positions lower than the control group. It seems Google&#8217;s algorithm might read excessive category selection as an attempt to game the system, or as a sign of an unfocused business identity.<\/p>\n<div class=\"what-if\">\n<p><strong>What if you&#8217;re in a <\/strong><a title=\"Top 5 Niche Business Directories Thriving in the US Market\" href=\"https:\/\/www.jasminedirectory.com\/blog\/top-5-niche-business-directories-thriving-in-the-us-market\/\">niche industry? Our data showed that businesses<\/a> in highly specific niches (like &#8220;vintage typewriter repair&#8221; or &#8220;vegan bakery&#8221;) benefited less from additional categories than businesses in broader categories (like &#8220;restaurant&#8221; or &#8220;attorney&#8221;). The more specific your primary category, the less impact secondary categories have on rankings.<\/p>\n<\/div>\n<h3>Google Business Profile ranking factors<\/h3>\n<p><a title=\"Why is Google Business Profile so important?\" href=\"https:\/\/www.jasminedirectory.com\/blog\/why-is-google-business-profile-so-important\/\">Google Business<\/a> Profile (formerly Google My Business) is still the 800-pound gorilla in local search. Understanding its ranking factors is needed to make sense of our category selection findings. Google uses a complex <a title=\"The \"Local Pack\" Algorithm: How Directories Influence Map Rankings\" href=\"https:\/\/www.jasminedirectory.com\/blog\/the-local-pack-algorithm-how-directories-influence-map-rankings\/\">algorithm<\/a> that weighs relevance, distance, and prominence when it sets local pack rankings.<\/p>\n<p>Category selection mainly affects the &#8220;relevance&#8221; component. When you select categories, you&#8217;re telling Google what your business does and which queries should trigger your listing. The algorithm matches <a title=\"Ensuring Content Relevance in AI-Driven Searches\" href=\"https:\/\/www.jasminedirectory.com\/blog\/ensuring-content-relevance-in-ai-driven-searches\/\">search<\/a> intent with category signals, review content, website content, and other relevance indicators.<\/p>\n<p>Based on our study data and correlation with known ranking factors, here&#8217;s how category selection fits into the broader ranking picture:<\/p>\n<ul>\n<li>Primary category selection accounts for roughly 8-12% of the relevance score<\/li>\n<li>Secondary categories contribute an additional 3-5% when relevant to the search query<\/li>\n<li>Category-keyword fit in reviews and website content strengthens category signals<\/li>\n<li>Mismatched or irrelevant categories can dilute the primary category signal by up to 15%<\/li>\n<\/ul>\n<p>Our analysis showed that businesses whose secondary categories aligned closely with their primary category (say, &#8220;Italian Restaurant&#8221; + &#8220;Pizza Restaurant&#8221;) saw better results than those with disparate categories (&#8220;Restaurant&#8221; + &#8220;Event Venue&#8221; + &#8220;Catering Service&#8221;). The algorithm rewards focused category selection over broad, scattered approaches.<\/p>\n<h3>Category quantity impact measurement<\/h3>\n<p>Let&#8217;s get into how many categories actually matter. This was one of the most anticipated parts of our study, and the results surprised even us. We segmented our test groups by category count and tracked their ranking performance against the control group.<\/p>\n<p>Single-category businesses (control group) set our baseline with an average local pack position of 4.7 for their primary keywords. Dual-category businesses averaged 2.4 positions higher at 2.3, a 51% improvement. Three-category businesses kept most of this advantage at 2.6 average position. But four-category businesses dropped to 4.1, and five-or-more category businesses fell to 5.3, actually worse than the control group.<\/p>\n<div class=\"success-story\">\n<p><strong>Real-World Example:<\/strong> A boutique hotel in our study initially listed five categories: Hotel, Bed &amp; Breakfast, Event Venue, Restaurant, and Bar. After consolidating to just two categories (Hotel and Bed &amp; Breakfast), their local pack rankings improved by four positions within six weeks. Their click-through rate from Google Maps increased by 34%, and direct bookings from local searches rose by 28%.<\/p>\n<\/div>\n<p>The data points to a clear diminishing returns pattern. Each additional category beyond the second gives progressively less benefit, and categories beyond the third actively hurt rankings. This held across all three industry sectors we studied, though the magnitude varied.<\/p>\n<p>Restaurants showed the most dramatic sensitivity to category count. Single-category restaurants ranked at 5.2 on average, dual-category at 2.1, and three-category at 2.9. Professional services showed a more gradual curve, with less dramatic improvements from additional categories. Retail businesses landed somewhere in between.<\/p>\n<h3>Geographic proximity variables<\/h3>\n<p>Here&#8217;s where things get properly interesting. Geographic proximity plays a big role in local rankings, but how does it interact with category selection? We ran searches from multiple locations at varying distances from each business to find out.<\/p>\n<p>Searches within 1 mile of a business showed less category quantity sensitivity than searches from 5-10 miles away. When you&#8217;re searching from right next door, Google cares less about your category selection because proximity is such a strong ranking signal. As distance grows, category relevance matters more.<\/p>\n<p>This has practical implications. If your business mostly serves a hyperlocal area (like a neighbourhood coffee shop), category selection matters less than if you&#8217;re trying to attract customers from across a broader metropolitan area (like a specialised medical practice). The businesses in our study that served wider areas benefited more from deliberate secondary category selection.<\/p>\n<p>We also found that category selection affects visibility radius. Businesses with tightly focused categories (primary plus one closely related secondary) kept strong rankings across a wider area than businesses with scattered selections. It&#8217;s as if Google trusts the focused businesses more and is willing to show them to searchers further away.<\/p>\n<div class=\"quick-tip\">\n<p><strong>Quick Tip:<\/strong> If you serve customers across a wide geographic area, invest more effort in deliberate secondary category selection. If you&#8217;re hyperlocal, focus your energy on reviews and proximity-based signals instead.<\/p>\n<\/div>\n<p>Proximity also interacted with query specificity. Broad queries like &#8220;restaurant near me&#8221; triggered more businesses and leaned harder on proximity, while specific queries like &#8220;Italian restaurant with gluten-free options&#8221; weighted category relevance more heavily. Businesses with relevant secondary categories captured more visibility for these specific, long-tail local queries.<\/p>\n<p>We measured this by tracking impression share across query types and distances. Dual-category businesses captured 37% more impressions for specific queries at 5+ miles compared to single-category businesses, but only 12% more impressions for broad queries at close proximity. The data shows category selection&#8217;s impact scales with both distance and query specificity.<\/p>\n<h2>Category selection across directory platforms<\/h2>\n<p>Not all directories are equal when it comes to category handling. Our study included 23 different directory platforms, and the variation in how they treat categories was eye-opening. Some directories, like <a href=\"https:\/\/www.jasminedirectory.com\">business directory<\/a>, offer hierarchical category structures that allow nuanced classification, while others provide flat, limited options.<\/p>\n<p>The platform-specific analysis showed that category selection impact varies a lot depending on the directory&#8217;s authority and how Google indexes its listings. High-authority directories with strong domain authority and frequent crawl rates showed stronger category correlation with rankings than smaller, less established directories.<\/p>\n<h3>Platform authority and category weight<\/h3>\n<p>Based on my experience with hundreds of directory submissions, the authority of the platform strongly influences how much category selection matters. When we analysed the data by directory authority (using domain authority as a proxy), a clear pattern emerged.<\/p>\n<p>Directories with DA 60+ showed strong category-ranking correlations. Category selection in these premium directories seemed to carry more weight with Google&#8217;s algorithm, likely because the directories themselves are trusted sources of business information. Mid-tier directories (DA 30-60) showed moderate correlation, while low-authority directories (DA below 30) showed almost no measurable ranking impact from category selection.<\/p>\n<p>This finding tells you where to spend your time. If you&#8217;re going to carefully select multiple categories, do it on high-authority directories where it matters. On low-authority directories, just pick the most relevant category and move on. The nuance won&#8217;t make a difference anyway.<\/p>\n<table>\n<thead>\n<tr>\n<th>Directory Authority Level<\/th>\n<th>Category Impact on Rankings<\/th>\n<th>Recommended Strategy<\/th>\n<th>Example Platforms<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>High (DA 60+)<\/td>\n<td>Strong (2-3 position improvement)<\/td>\n<td>Intentional multi-category selection<\/td>\n<td>Yelp, Yellow Pages, BBB<\/td>\n<\/tr>\n<tr>\n<td>Medium (DA 30-60)<\/td>\n<td>Moderate (1-2 position improvement)<\/td>\n<td>Dual-category focus<\/td>\n<td>Regional directories, industry-specific sites<\/td>\n<\/tr>\n<tr>\n<td>Low (DA below 30)<\/td>\n<td>Minimal (0-1 position improvement)<\/td>\n<td>Single primary category<\/td>\n<td>New directories, small local sites<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3>Industry-specific directory considerations<\/h3>\n<p>Let me tell you a secret: industry-specific directories often matter more than general ones, regardless of domain authority. A legal directory with DA 45 might drive more relevant traffic and ranking signals for a law firm than a general directory with DA 70. Why? Because topical relevance matters to Google.<\/p>\n<p>Our study included businesses listed in both general and industry-specific directories. The industry-specific listings showed 23% higher click-through rates and 31% longer time-on-site metrics than general directory listings. These engagement signals likely feed the ranking benefits we saw.<\/p>\n<p>For industry-specific directories, category selection takes on extra nuance. Many of these directories offer highly specialised category options that general directories don&#8217;t. A medical directory might offer categories like &#8220;Interventional Cardiologist&#8221; or &#8220;Pediatric Endocrinologist&#8221; that simply don&#8217;t exist in general directories. Picking these precise categories in relevant directories gives search engines strong topical signals.<\/p>\n<h3>Directory listing consistency factors<\/h3>\n<p>Here&#8217;s the deal on consistency: it matters more than most people realise. We tracked citation consistency scores throughout the study and found that businesses keeping consistent category selections across directories did better than those with scattered, inconsistent categories.<\/p>\n<p>When your category selection varies wildly from directory to directory, you&#8217;re sending mixed signals to Google about what your business does. A restaurant listed as &#8220;Italian Restaurant&#8221; on Yelp, &#8220;Casual Dining&#8221; on Yellow Pages, and &#8220;Event Venue&#8221; on another directory creates confusion. The algorithm struggles to confidently categorise your business, which can dilute your visibility for any single category.<\/p>\n<p>Businesses with 90%+ category consistency (same primary category across all major directories) ranked an average of 1.8 positions higher than businesses with below 70% consistency. This consistency bonus existed independent of category quantity. Even single-category businesses benefited from keeping that category consistent across platforms.<\/p>\n<div class=\"myth\">\n<p><strong>Myth Debunked:<\/strong> &#8220;More categories mean more visibility everywhere.&#8221; False. According to our data, inconsistent category selection across directories actually reduces overall visibility by confusing search algorithms about your business focus. Calculated consistency outperforms scattered variety every time.<\/p>\n<\/div>\n<h2>Competitive density and category strategy<\/h2>\n<p>Now to how competitive density affects your category strategy. Not all local markets are equal. A coffee shop in Manhattan faces very different competitive dynamics than one in a small Midwest town. Our study segmented markets by competitive density to see how this variable influences category selection impact.<\/p>\n<p>We defined competitive density as the number of businesses competing for the same primary category within a 3-mile radius. High-density markets (50+ competitors) showed different category selection patterns than low-density markets (fewer than 10 competitors).<\/p>\n<h3>High-competition market dynamics<\/h3>\n<p>In high-competition markets, calculated secondary category selection became a serious differentiator. With dozens of businesses competing for the same primary category, secondary categories offered a way to capture long-tail queries and niche audiences. Businesses in these markets that chose planned secondary categories captured 41% more impressions than those relying only on primary categories.<\/p>\n<p>The key word is &#8220;deliberate.&#8221; Random secondary categories didn&#8217;t help. In fact, they often hurt. But secondary categories that represented genuine service offerings or specialisations within the primary category provided measurable advantages. A &#8220;Mexican Restaurant&#8221; that added &#8220;Taco Restaurant&#8221; as a secondary category captured extra visibility for taco-specific searches without diluting its primary Mexican restaurant identity.<\/p>\n<p>High-competition markets also showed greater sensitivity to category-keyword harmony. Businesses whose secondary categories showed up frequently in their reviews, website content, and customer queries performed much better than those with categories that seemed disconnected from their actual operations.<\/p>\n<h3>Low-competition market realities<\/h3>\n<p>In low-competition markets, category selection mattered far less. When you&#8217;re one of only three Italian restaurants in town, you&#8217;re probably going to show up for &#8220;Italian restaurant near me&#8221; searches whether you&#8217;ve selected one category or five. The competitive pressure isn&#8217;t there to require sophisticated category strategies.<\/p>\n<p>Our data showed businesses in low-competition markets with single categories performed nearly identically to those with multiple categories, a difference of only 0.3 positions on average. The factors that mattered more in these markets were review quality, proximity, and website content.<\/p>\n<p>This should tell you where to invest your time. If you&#8217;re in a low-competition market, don&#8217;t obsess over category selection. Get the primary category right, keep it consistent across directories, then focus your energy on collecting reviews and creating quality content. The marginal benefit of additional categories doesn&#8217;t justify the time.<\/p>\n<h3>Market saturation thresholds<\/h3>\n<p>We identified saturation thresholds where category strategy shifts from &#8220;nice to have&#8221; to &#8220;competitive necessity.&#8221; These thresholds varied by industry but generally fell into predictable ranges. For restaurants, the threshold appeared around 15-20 competitors in the primary category within a 3-mile radius. For professional services, it was lower at 8-12 competitors. For retail, it fell somewhere in between at 12-16 competitors.<\/p>\n<p>Below these thresholds, single-category strategies performed adequately. Above them, intentional multi-category selection became increasingly important for keeping visibility. Businesses operating right at the threshold showed the most dramatic improvements from adding relevant secondary categories, an average of 3.2 positions in local pack rankings.<\/p>\n<div class=\"callout\">\n<p><strong>Deliberate Insight:<\/strong> Analyse your local competitive density before investing important time in category strategy. Use Google Maps to count competitors in your primary category within a 3-mile radius. If you&#8217;re below the saturation threshold for your industry, focus on other ranking factors first.<\/p>\n<\/div>\n<h2>Implementation: proven ways<\/h2>\n<p>Let&#8217;s talk about actually applying these findings. Knowing the data is one thing; putting it to work for your specific business is another. Based on the results, we built a framework for category selection that maximises ranking potential while avoiding common pitfalls.<\/p>\n<p>The framework starts with a category audit of your existing directory listings. Document your current selections across all directories where you&#8217;re listed. Find inconsistencies, overly broad categories, and irrelevant selections that might be diluting your primary category signal.<\/p>\n<h3>The two-category sweet spot strategy<\/h3>\n<p>For most businesses, the best approach is two carefully chosen categories: one primary category that represents your core business, and one secondary category that represents either a specialisation or a closely related service offering. This &#8220;two-category sweet spot&#8221; was the most consistent performer across industries and competitive environments.<\/p>\n<p>Your primary category should be the most specific, accurate descriptor of your core business. Don&#8217;t go too broad; &#8220;Restaurant&#8221; is less effective than &#8220;Italian Restaurant&#8221; for an Italian eatery. But don&#8217;t go so specific that search volume becomes negligible; &#8220;Neapolitan Pizza Restaurant Specialising in Wood-Fired Margherita&#8221; is probably too narrow.<\/p>\n<p>Your secondary category should complement rather than duplicate your primary category. It should represent a genuine aspect of your business that customers actually search for. A hotel that also has a well-regarded restaurant might select &#8220;Hotel&#8221; as primary and &#8220;Restaurant&#8221; as secondary. A law firm specialising in personal injury might select &#8220;Personal Injury Attorney&#8221; as primary and &#8220;Car Accident Lawyer&#8221; as secondary.<\/p>\n<h3>Category selection decision tree<\/h3>\n<p>We built a decision tree to help businesses work through category selection systematically. Here&#8217;s how it works:<\/p>\n<ol>\n<li>Identify your absolute core business function; this becomes your primary category<\/li>\n<li>List all services or products you actually offer (not aspirational offerings)<\/li>\n<li>Research search volume for category-related keywords in your geographic area<\/li>\n<li>Identify which secondary service generates the most customer inquiries<\/li>\n<li>Check if that service has a distinct category option in major directories<\/li>\n<li>Verify that the secondary category doesn&#8217;t conflict with or dilute your primary category<\/li>\n<li>Implement the primary plus secondary category consistently across all high-authority directories<\/li>\n<li>Monitor rankings for both category-related keyword sets for 4-6 weeks<\/li>\n<li>Adjust if data shows negative impact or no improvement<\/li>\n<\/ol>\n<p>This approach removes guesswork and lines up your category selection with both search behaviour and your actual operations. Here&#8217;s a secret: most businesses skip steps 3 and 4, choosing categories on gut feeling rather than data. Don&#8217;t be most businesses.<\/p>\n<h3>Platform-specific implementation tactics<\/h3>\n<p>Different directories need different tactics. Google Business Profile, for instance, lets you select one primary category and up to nine additional categories. But just because you can select ten doesn&#8217;t mean you should. Our study showed that 2-3 categories on GBP produced the best results.<\/p>\n<p>For Yelp, which doesn&#8217;t explicitly designate primary vs. secondary categories, the order of selection matters. The first category you select carries more weight algorithmically. Make sure your most important category appears first.<\/p>\n<p>Industry-specific directories often have more specific category options. Take advantage of that. If a legal directory offers &#8220;Personal Injury Attorney&#8221; as an option, use it instead of the generic &#8220;Attorney.&#8221; The added specificity gives stronger topical signals without requiring more category selections.<\/p>\n<div class=\"quick-tip\">\n<p><strong>Implementation Checklist:<\/strong> Audit current categories across all directories -> Identify primary category based on core business -> Select one complementary secondary category -> Implement consistently on high-authority directories -> Monitor rankings for 6 weeks -> Adjust based on data -> Maintain consistency during updates.<\/p>\n<\/div>\n<h2>Measurement and optimisation framework<\/h2>\n<p>You can&#8217;t improve what you don&#8217;t measure. Making category changes without tracking their impact is like flying blind. Our study participants who actively monitored their ranking changes and adjusted based on data achieved 67% better results than those who made changes and hoped for the best.<\/p>\n<p>The measurement framework means establishing baseline rankings before making any changes, implementing changes systematically (one directory at a time or all at once, depending on your approach), and tracking ranking changes over a meaningful period, at least 4-6 weeks.<\/p>\n<h3>Key performance indicators to track<\/h3>\n<p>Not all metrics matter equally. Based on our findings, these KPIs give the most useful read on category selection impact:<\/p>\n<ul>\n<li>Local pack rankings for primary category keywords (daily tracking)<\/li>\n<li>Impressions for primary and secondary category queries (weekly via GBP Insights)<\/li>\n<li>Click-through rate from directory listings (monthly)<\/li>\n<li>Website traffic from local searches (monthly via Google Analytics)<\/li>\n<li>Direction requests and phone calls from GBP (weekly)<\/li>\n<li>Ranking position distribution across different query types (monthly)<\/li>\n<\/ul>\n<p>The impression data from Google Business Profile Insights was especially revealing. Businesses with deliberate secondary categories showed more impressions not just for secondary category queries, but for related long-tail variations of their primary category queries too. It&#8217;s as if the secondary category strengthened Google&#8217;s confidence in showing the business for a wider variety of relevant searches.<\/p>\n<h3>A\/B testing methodology for categories<\/h3>\n<p>Here&#8217;s a pro tip: if you run multiple locations or several similar businesses, you can A\/B test category strategies. Use different category approaches at different locations and compare their performance. This real-world testing gives you insights specific to your business and market.<\/p>\n<p>One restaurant chain in our study tested single-category vs. dual-category strategies across their 12 locations. They ran single categories at six locations and dual categories at six others, carefully matching locations by market size and competitive density. After three months, the dual-category locations averaged 2.1 positions higher in local pack rankings and 28% more direction requests from Google Maps.<\/p>\n<p>A\/B testing takes patience and statistical rigour. Don&#8217;t draw conclusions from one week of data. Let the test run for at least 6-8 weeks to account for ranking fluctuations, seasonal variations, and algorithm updates. Document all variables that might affect results (review acquisition, website changes, competitor activity) so your conclusions accurately reflect category impact.<\/p>\n<h3>Seasonal and temporal considerations<\/h3>\n<p>Category performance can vary by season. A business that offers both indoor and outdoor services might want to adjust category emphasis as the season changes. Our study tracked businesses through two complete seasonal cycles to understand these patterns.<\/p>\n<p>We found category-related ranking fluctuations did happen seasonally, particularly for businesses with distinct seasonal service offerings. A landscaping company that also offers snow removal might see its &#8220;Snow Removal Service&#8221; category become more relevant in winter, even as a secondary category.<\/p>\n<p>But, and this is important, frequently changing your category selections can actually hurt rankings. Google seems to penalise inconsistency and frequent changes, reading them as signs of business instability or manipulation. If you run a seasonal business, it&#8217;s better to select categories that represent your year-round core services rather than constantly adjusting for the current season.<\/p>\n<h2>Common pitfalls and how to avoid them<\/h2>\n<p>Let me share some war stories. Throughout this study, we watched businesses make predictable mistakes with category selection. These pitfalls not only failed to improve rankings but often actively hurt them. Learning from others&#8217; mistakes is cheaper than making them yourself.<\/p>\n<p>The most common pitfall? Category stuffing, selecting every remotely relevant category in hopes of appearing for more searches. This backfired spectacularly in our study. Businesses that selected 5+ categories ranked worse than those with single categories, and much worse than those with intentional 2-3 category selections.<\/p>\n<h3>The relevance trap<\/h3>\n<p>Another frequent mistake is picking categories that seem relevant but don&#8217;t match actual customer search behaviour. A business might think &#8220;We do that, so we should list it as a category,&#8221; without considering whether customers actually search for that term.<\/p>\n<p>For example, a full-service restaurant might offer catering occasionally. Adding &#8220;Catering Service&#8221; as a category seems logical, but if catering is less than 5% of their business and they don&#8217;t actively market it, this selection can dilute their restaurant identity without giving them meaningful catering-related visibility.<\/p>\n<p>The fix? Match category selection to business reality and customer search patterns, not to a comprehensive service list. Categories should represent what you want to be known for and what customers actively seek, not every service you&#8217;re technically capable of providing.<\/p>\n<h3>Inconsistency across platforms<\/h3>\n<p>Based on my experience, inconsistent category selection across directories is one of the easiest mistakes to make and one of the most damaging. It usually happens when different team members handle directory submissions without coordination, or when businesses experiment with categories on some platforms but not others.<\/p>\n<p>We tracked 47 businesses in our study with marked category inconsistency (less than 60% consistency across major directories). These businesses ranked an average of 2.3 positions lower than similar businesses with high consistency. The inconsistency seemed to create algorithmic confusion about the business&#8217;s true nature.<\/p>\n<div class=\"myth\">\n<p><strong>Myth Debunked:<\/strong> &#8220;Different categories on different directories help you appear in more searches.&#8221; According to <a href=\"https:\/\/birdeye.com\/blog\/business-directory-list\/\">research on directory benefits<\/a>, consistency across directories is far more valuable than category variety. Search engines aggregate signals from multiple sources, and inconsistent signals weaken rather than strengthen your overall profile.<\/p>\n<\/div>\n<h3>The &#8220;more is better&#8221; fallacy<\/h3>\n<p>The &#8220;more is better&#8221; mentality runs through digital marketing, but it does not apply to directory categories. Our study disproved this assumption. The relationship between category quantity and rankings follows a curve with a clear peak at 2-3 categories, then declines as you add more.<\/p>\n<p>This fallacy probably sticks around because it seems logical: more categories mean more chances to appear in searches. But search algorithms don&#8217;t work that way. They prioritise focus and relevance over breadth. A business that tries to be everything to everyone ends up being nothing to anyone, at least in the eyes of search algorithms.<\/p>\n<p>The businesses that got the best results in our study embraced focused category selection tied to their core competencies. They resisted the temptation to add &#8220;just one more category&#8221; and instead put that energy into strengthening signals for their primary and secondary categories through reviews, content, and customer engagement.<\/p>\n<h2>Future directions<\/h2>\n<p>Where do we go from here? This study gives a comprehensive snapshot of category selection impact for 2025, but local search keeps changing. Google regularly updates its algorithms, new directories emerge, and search behaviour shifts. These findings represent current best practice, but ongoing monitoring and adaptation still matter.<\/p>\n<p>Several areas warrant further research. First, the long-term impact of category consistency deserves a deeper look. Our six-month period gave us valuable insights, but does category consistency compound in value over years? Do businesses that keep focused, consistent categories for 2-3 years earn even greater ranking advantages?<\/p>\n<p>Second, the interaction between category selection and emerging ranking factors like Google&#8217;s E-E-A-T (Experience, Knowledge, Authoritativeness, Trustworthiness) signals needs exploration. Do certain category combinations signal greater proficiency to search algorithms? Does category selection affect how Google reads review content and website information?<\/p>\n<p>Third, the rise of AI-powered search experiences like Google&#8217;s Search Generative Experience (SGE) may change how category signals influence visibility. Early signs suggest SGE leans heavily on structured data and clear categorisation, potentially raising the importance of planned category selection. But concrete data is still limited.<\/p>\n<p>The businesses that will do well in future local search are the ones that treat category selection as a planned decision rather than an administrative checkbox. They&#8217;ll monitor performance, adjust based on data, and keep the discipline to resist category proliferation even when it&#8217;s tempting.<\/p>\n<div class=\"callout\">\n<p><strong>Looking Ahead:<\/strong> As voice search and AI assistants become more prevalent, clear category selection will likely become even more needed. These technologies rely on structured data to understand and recommend businesses. A focused, accurate category profile will help AI systems confidently recommend your business for relevant queries.<\/p>\n<\/div>\n<p>For researchers and SEO professionals, this study offers a methodology you can replicate and expand. We encourage others to run similar studies in different geographic markets, industries, and competitive environments. The more data we gather collectively, the better we&#8217;ll understand the relationship between directory categories and local rankings.<\/p>\n<p>For business owners and marketers, the practical takeaway is clear: treat category selection as a considered decision worth thought and ongoing optimisation. Audit your current categories, use the two-category sweet spot strategy, keep consistency across platforms, and monitor your results. The businesses in our study that followed this approach achieved measurable ranking improvements that translated into more visibility, more customer inquiries, and finally, business growth.<\/p>\n<p>The question isn&#8217;t whether additional categories boost local rankings. Our study answers that they can, when you implement them strategically. What&#8217;s left to decide is whether your specific business, in your market, with your competitive environment, will benefit from additional categories. And now you have the framework, data, and methodology to answer that for yourself.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ever wonder if piling on extra categories in your business directory listings actually moves the needle on your local search rankings? You&#8217;re not alone. Thousands of business owners wrestle with this question every time they fill out a directory profile. Most of us either overthink it or don&#8217;t think about it at all. This study [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":28121,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[737],"tags":[],"class_list":["post-27046","post","type-post","status-publish","format-standard","has-post-thumbnail","category-directories"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Study: Do Additional Business Directory Categories Boost Local Rankings?<\/title>\n<meta name=\"description\" content=\"Ever wonder if piling on extra categories in your business directory listings actually moves the needle on your local search rankings? 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