What do people mean by improving local search engine optimization?

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optimizing your website for local queries. In other words, if you stay in South Africa, optimizing your website for traffic originating from South African servers.
Example: Getting more sites on google from the area you live
What they mean by this is improving search results for the area where your web site or business is based.
Lets say for example you run an offline pet store in Dallas TX, but also sell your products online.
It makes sense for Google to show you high in the search results for terms which relate to ‘Dallas Pet Store’ because that is where your store is physically based.
There are many ways to achieve this, not least by registering for a Google Webmasters account and submitting your web site, verifying and then setting your Geo Targeting preferences.