We're looking to redesign one of our niche business directory websites and we'd like to place local content on the homepage catered to the user based on IP. For instance, someone from Los Angeles would see local business recommendations in their area. Pretty much a majority of the page would be this kind of content. Is this considered cloaking or in any way a bad idea for SEO?
Here are some examples of what we're thinking:
http://www.yellowbook.com
http://www.yellowpages.com/
I've seen some sites redirect to a local version of the page, but I'm a little worried Google will index us with localized content and the homepage would not rank for any worthwhile keywords. What's the best way to handle this?
Thanks.