Local businesses can attract potential customers and searchers using highly targeted videos as well as many other tactics as part of your overall SEO and marketing strategy.  Your video topics should be specific and built around 1 or 2 keywords/phrases at the most.  In most cases, short concise videos work best.  If your video needs to be longer in order to cover something more in depth, then it's best to make a short "movie trailer" type video to market and have it direct viewers to the longer version hosted on your site.
 
Here's a quick video sample I created for a potential client to showcase the power of using videos as a part of a robust search engine optimization strategy.

Note: This is not a polished final video.  I made it before speaking with the client in an effort to get it ranked and then "wow" the customer.  If they go on to use my services then the video would of course be edited to become a more highly polished final product.

Take a quick look...

 

Potential Client: Galloway & Moseley

Custom Jewelry South Carolina (direct link to the YouTube version)
Custom Jewlery South Carolina (link to the reference on Digg)
Custom Jewelry South Carolina (link to the reference on Mixx)