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Local SEO - What's OK And What Isn't?

I've noticed my site isn't ranking as well lately, so I did some competitor research. Turns out a few of my better ranking competitors have pages with duplicate content that are for different cities in the area.

For instance, /web-design/baltimore and /web-design/annapolis These pages are identical except for they swap out the city names, and they are separate from the main /web-design page that is linked in the navigation. They also have /ppc/baltimore and /ppc/annapolis that follow the same mold.

I thought that was an outdated SEO tactic, but it's got them ranking higher than me for those service + geo modifier keywords. Then again, my primary job is not SEO, so maybe I'm missing something?

I always try to do things above-board, but it seems like people who don't follow local SEO best practices are still getting ahead by doing so. I'd appreciate any advice or resources you have to get a better understanding of how I should be practically approaching local SEO in a competitive market.

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