New Google Search Quality Updates: Page Quality, Location, Proximity most important

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Google recently posted an update on their blog mentioning
the important changes they did to their search quality for the month of August and September 2012. Among the 65 changes
they made, the most important ones for determining the rankings of a web page
were page quality, location wise search terms and term proximity. Let us now,
discuss about these factors in more detail.

Focus on Quality (Image credit:- matomymedia)
Page Quality
More focus and weightage has been given to the quality of
the web page so its necessary to have a super high quality content page for
your users. The Panda algorithm is working behind the curtains for this page
quality signal, hence making changes to your web page as per the Panda
recommendations would help you to rank well on the search results. The most
important ones are listed on the link below:-
Location
Location based queries would return more accurate results
than before which means local websites would see a jump in rankings for search
terms containing local keywords. Remember this is just a small part of the
overall algorithm so smaller and less popular websites would hardly receive any
benefit.
Term Proximity
Proximity scoring is a part of the “Query Understanding”
project which means it has become easier for Google to predict search queries
entered by the user. This would help in returning more accurate results before
the user. Proximity of the query means closeness of the search terms. 
Hence, considering the value of the points discussed above,
it is much better to shift our focus on getting a better page quality, have the
page locally optimized keeping in mind the term proximity score of our major
keywords. This is surely going to benefit our tasks as search engine
optimizers.

Read more :- Insidesearch blog

Also See:- 

Google Page Layout Algorithm
Penguin Update 3
Panda Update 20
EMD Update
Google Ranking Documents