So it appears that local marketing is the new black of sorts when it comes to the Internet. Location based services, concentration on the SMB and now attention being given to large national advertisers whose lifeblood is local markets all over the map is bringing local marketing to the forefront of the Internet marketing mix.

The folks over at Mobile Marketing Watch now tell us just how much Google knows about local search and it’s easy to see why this is such a hot topic.

Speaking at a Mobile Marketing & Advertising event in Las Vegas to coincide with CTIA Wireless 2010, Diana Pouliot – director of mobile advertising at Google – revealed that one-third of all Google searches via the mobile web pertain to some aspect of the searcher’s local environment.

That’s the kind of number that you look at and can think it’s either too high or too low at the same time. In other words, it’s important. Why? Because we are literally on the cusp of what the mobile Internet could be in the near future. Since there is not a lot of data to draw from the mobile industry will live and die by the sheer volume of users initially just like the commercial Internet did at the beginning. With 1/3 of the people using search on the mobile web to answer a local need it is an indication that the hype around mobile may actually have some truth to it this time.

Google’s Mobile Ad Group’s product manager Paul Feng backed up Pouliot’s numbers with an idea of just how Google is going to try to capitalize on this growing trend.

Building on the changing ad formats foreshadowed by Google in recent months, Feng suggested further tweaking of those formats in the near future – changes that may even involve new forms of user interaction, including navigation.

According to Mr. Feng: “We think of location as a hugely important signal.”

So now know that Yahoo is moving into the local display area with some intensity and Google is gearing up to continue its quest for non-evil world domination through the local / mobile channel, our question is: What are you doing about this for your business or brand? Do you think this is really the time for local to take off or have you grown so skeptical over the years as you have seen several ‘breakthough moments’ for mobile come and go?

Let’s hear your thoughts and please tell us if you are letting us know while you are on the go yourself.