You don't need a PBN for ranking local sites. Putting up a PBN takes time, upkeep, rolling costs. For local it is generally overkill unless you're competing somewhere like NY maybe.
You can rank in local with a lot less.
Don't rely soley on PBN that is leaving a huge footprint for google, especially if you don't get the PBN's right, think diversity into your link building, and ask yourself does the link profile look natural.
Also (don't know if you did this as part of onpage) embed google maps with your business adress on your site, and create a verified google+ business account/site, just keep in mind that with the google+ site/page all information like adress and phone number etc. must be cungurent with all other citations you have, in fact don't stop with google+ do the same with facebook,twitter,linkedin,instagram and pinterest and any other that I might have forgotten.
also see if you can find local forums or forums within your niche and use a signature with local kw that makes people want to click it, and be active in these forums, it will probably do some for seo but more importantly bring traffic witch in the end is the goal right?
sadly ifall your competitors are using pbn then you will likely have to as well- there is a new service being offered starting your own pbn with fantastic backlinks for about $50 -per site
Are you doing citations as well? Those are great for local SEO (I think.. don't quote me on that!).
Then again, I'm just a writer .
If your ultimate goal is "to outrank them", then you need to think ahead of your competitors and concentrate more on your link building approach. Do not restrict yourself from just building PBNs and citations alone, go with the global approach too. Guest posts, Press releases are a good way to diversify your backlink profile and it will come in handy in the longer run. Setting up your PBN is also very much needed in your case as you say the niche is highly competitive.
Just go with the option 1:
I don;t think web 2.0 gives you local visitors. Some webmaster here says that web 2 link building is not an organic SEO process.
But PBN citation and local press releases, local social exposure will sure reach you to a good position.
NO,
PBN is not a good approach if you are ranking for local.
Did you put it on Google Map?
If not, do it now.
- Add citation
- Social Signals
- Video BL
You should get your foot on...
Yes a PBN can rank it but for low competition keywords, I would recommend alternatives like web2.0s, social mentions, citations etc.
One of my clients is a Pest Control company in Los Angeles (cut throat competition) and they have been ranking extremely well (page one for their service location), even outranking most of the larger companies. I focused at first on tracing where the top ranking competition's local citations were and grabbed every single one, filling out every form possible when creating them, uploading images, and posting the youtube video I made for them if given the opportunity...oh and of course making sure my NAP was 100% accurate all across the board. I also focused quite a bit on Google Plus for local businesses (since Google seems to favor itself) and other reputable local business review sites, trying to get reviews...from locals who checked into the business (or spoofing them with a smartphone emulator, location spoofing and very good dedicated local proxies).
As for Global ranking tactics like PBN's I did use a handful of them...small handful, maybe 20 give or take. I spent a good deal of time building them to make them very professional looking, using all 100% original, high quality content. Some were just blogs about insects in the Los Angeles area, with lots of focus on my area including using an LA address in the contact information for most of them, and similar ideas, but try and make them as diverse as possible. I also set up some high quality press releases for local news websites in my area. I do not think it's the worst idea, or a complete waste of time...as long as the PBN sites are very high quality, updated semi-regularly, and are of course relevant to your niche.. etc...but you shouldnt need too many of them. Building hundreds or thousands of poorly made Web 2.0's and what not could just blow up in your face at some point, so I would not recommend going that route. I also got a few backlinks (under ten) from edu sites at 3 different colleges in my clients city, but that was very difficult. As for authority links or parasite links I would avoid those as well, just to stay safe. Too risky in my opinion, not to mention a complete waste of time and money which could be better spent elsewhere, especially if end up tanking the site in the long run. Just my two cents anyways.