Yahoo's Concept of Region
I talked about this with a friend of mine that worked at Yahoo some months back and asked him what was the most important factor in gaining local success, his answer went like this: "Yahoo calls it "Concept of Region" and there are four main factors, the language, ccDLT ending, local hosting and finally inbound local links and even better if they are in the local language." So if Yahoo is doing it this way, then Google, MSN and ASK are very likely to be doing it in a simular way?
I have seen a raise in local visits/referals (Google) just by moving the site from a .com to the ccTLD and in some projects I have worked on, the radio button for "pages from the.....", has been marked in nearly 40% of searches. So go local of you can.
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