Yes, setting service areas in local SEO directly impacts your ranking in Google search results. I'll explain exactly how this works and what you need to know to optimize your business listings.

Service areas tell Google where you operate, which is crucial for appearing in local search results. When you properly set up your service areas in Google Business Profile (formerly Google My Business), you're more likely to show up in searches within those specified regions.

Here's how service area settings affect your ranking:

1. Geographic Relevance
    - Helps Google understand where you serve customers
    - Determines which local searches you appear in
    - Influences your visibility in "near me" searches

2. Competitive Advantage
    - Shows up in searches within defined service areas
    - Appears in Map Pack results for relevant locations
    - Improves visibility against local competitors

It's important to note that setting too large a service area can actually hurt your rankings. I recommend being specific and realistic about where you can serve customers effectively.

Best practices for setting service areas include:

- Define areas based on actual service capability
- Include specific cities and neighborhoods you serve
- Regularly update service areas as your business grows
- Remove areas where you no longer operate
- Keep radius settings reasonable for your business type

The impact on rankings can be significant. Businesses that accurately define their service areas typically see better local search performance. This is because Google aims to show users the most relevant local businesses based on their location and search intent.

A common mistake I see is businesses setting overly broad service areas hoping to capture more searches. This strategy often backfires, as Google may view it as less relevant for specific local searches.

For optimal results, combine proper service area settings with:

- Accurate business information
- Regular profile updates
- Consistent NAP (Name, Address, Phone) across all platforms
- Local content creation
- Customer reviews

Monitor your local search performance after updating service areas. You should notice changes in visibility within 2-4 weeks. If you don't see improvements, consider adjusting your service area settings or consulting with a local SEO specialist.

Remember that service areas are just one part of local SEO ranking factors, but they're particularly important for service-based businesses without physical locations that customers visit.

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