Advertisers and tech companies are slowly honing in on the possibilities of localized, mobile advertising. Yesterday on the GoogleMobile blog, the search giant announced a big step in that direction with Search with My Location:

Now, using the Gears Geolocation API, Search with My Location approximates your actual location using the same Cell ID technology used by Google maps for mobile.

Now, when smartphone users enter a search term, Google will return results catered to where they are standing at that moment. Previously, Google’s mobile search results were tailored to the last location entered into the search engine.

With Google intuiting a user’s zipcode when they search for things like “sushi,” “pizza,” or “weather,” it can’t be long until advertisers get in on paying Google so their results appear on the top of the list for that zipcode...