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SERP Change? Organic and Local listings merging

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I do all of my client reporting at the start of the calendar month, and one client in particular I track the SERPs ignoring and not ignoring Google+ Local.

The results for December were interesting though. All his Local listings went up (despite us not working on them), and all his Organic rankings on keywords with Local results disappeared.

I did a manual search, and it seems the results have been merged into G+ Local. Some keywords only show 3 or 4 organic results, and the rest are Local. Even more interesting, none of the results listed in Local have an Organic listing on the first page (wasn't the case before).

Has anyone else noticed this, or got any more information about it? I'm wondering if SEO to the client website will continue to positively effect his "visibility" in SERPs - or if we trash that strategy and start working Local.

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