An updated Yahoo Local was launched Tuesday night, combining search with neighborhood-level recommendations and upgraded mapping features, paidcontent reports, citing a post on the Yahoo Search Blog. Users "have the option to refine location by neighborhood in major cities and even support searching by neighborhood," according to the post. Maps have been more seamlessly and unobtrusively integrated, with local results automatically plotted: "hover and see details, click on the icon and see directions," writes paidcontent.

There's an option to hide recommendations; RSS feeds are available for events and local favorites; searches can be personalized; maps of traffic and Wi-Fi spots are part of the local pages.

ClickZ quotes Greg Sterling, director of the interactive local media program at The Kelsey Group, as saying that by harnessing the local information and expertise of local residents and offering it in one place, Yahoo has the potential to differentiate its local offering.

"This creates new advertising opportunities if they get more traction. They've already established themselves in a leadership position, and this will only put them farther ahead," Sterling said. Yahoo still offers Local Sponsored Search pay-per-click ads and enhanced local listings for $9.95 a month.