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My head is spinning trying to wrap my head around how anyone could conclude the service area setting had anything to do with this. Based on what I'm reading, I see that doing a lot of good SEO helps you gain prominence (what you're calling "location authority"). Prominence leads to more traffic. I don't see any way to accurately conclude what part the service area played in any of this.
People generally add service areas because they want to rank in areas further away from them. I've never seen that work once.
People generally add service areas because they want to rank in areas further away from them. I've never seen that work once.