Location targeting determines where your Google Ads appear geographically. Get it right and every pound of ad spend reaches potential customers in the areas you serve. Get it wrong and you waste budget showing ads to people who will never buy from you because they are in the wrong city, the wrong region, or even the wrong country.
After auditing hundreds of Google Ads accounts, Ben finds location targeting misconfigured in the majority of them. The default settings are designed to maximise Google's revenue, not your return on investment. This guide explains how to set up location targeting correctly and avoid the most common mistakes.
Why location targeting matters
Consider a plumber based in York. If his Google Ads are showing to people in London, Birmingham, and Manchester, he is paying for clicks from people he will never be able to serve. Every click from outside his service area is wasted money.
Now consider an e-commerce brand shipping across the UK. They need nationwide coverage but might want to exclude Northern Ireland due to shipping restrictions, or bid higher in London where their conversion rate is strongest.
Location targeting affects:
- Relevance: Your ads reach people in the areas you actually serve
- Budget efficiency: Every pound is spent on potential customers, not irrelevant clicks
- Conversion rates: People in your target area are far more likely to convert
- Quality Score: Higher relevance leads to better quality scores, which lowers your cost per click
- Competitive positioning: You can bid more aggressively in areas where you have a competitive advantage
The default setting trap - presence or interest vs presence only
This is the single most important location targeting concept in Google Ads, and the one that wastes the most money across the platform. Google's default location targeting option is "Presence or interest: People in, regularly in, or who've shown interest in your targeted locations."
What does "shown interest" mean? It means if someone in Edinburgh searches for "plumber in York," Google considers them as having shown interest in York - and your ad can appear. On the surface this sounds reasonable, but in practice it means:
- A person in London researching York for a potential visit could see your ad for a York-based plumbing service
- Someone in Scotland reading a news article about York could trigger an impression
- A user who previously searched for York hotels months ago might still be flagged as "interested"
For most local and regional businesses, this is a significant source of wasted spend. The fix is simple but hidden.
How to change the setting
When setting up or editing a campaign:
- Go to your campaign settings
- Click on "Locations"
- Click "Location options" (this is easy to miss - it is a small expandable section)
- Under "Target," change from "Presence or interest" to "Presence: People in or regularly in your targeted locations"
- Under "Exclude," change to "Presence: People in your excluded locations"
- Save your changes
This single change ensures your ads only show to people who are physically in (or regularly visit) the areas you target. It is one of the simplest optimisations in Google Ads and one of the most impactful.
Location targeting options explained
Google Ads offers several types of location targeting. Understanding when to use each one is key to effective geographic targeting.
Country targeting
Target an entire country. Best for e-commerce businesses selling nationwide or brands with national coverage. Example: targeting "United Kingdom" to reach all of England, Scotland, Wales, and Northern Ireland.
Region or county targeting
Target specific regions within a country. Google Ads supports targeting by county, region, or metropolitan area. Example: targeting "North Yorkshire" or "Greater Manchester."
City targeting
Target a specific city. Best for local businesses that serve a particular urban area. Example: targeting "York" or "Leeds." Note that city boundaries in Google Ads may not exactly match official city limits - they are based on Google's geographic data.
Postcode targeting
Target specific postcode areas. This is the most granular named location option. Example: targeting "YO1" or "LS1." Useful for hyper-local businesses or when you want to test performance in specific postcodes before expanding.
Radius targeting
Target a circular area around a specific point (address, city centre, or coordinates). You set the centre point and the radius distance. This is often the best option for service-area businesses. Example: targeting a 15-mile radius around your office address.
Step-by-step: setting up location targeting
Here is exactly how to configure location targeting in your Google Ads campaign:
For a new campaign
- During campaign creation, scroll to the "Locations" section
- Select "Enter another location"
- Type the city, region, or postcode you want to target
- Click "Target" next to the correct result
- Repeat for additional locations
- Expand "Location options" and change to "Presence only" (as described above)
- Continue with the rest of your campaign setup
For an existing campaign
- Open the campaign you want to edit
- Click "Settings" in the left menu
- Scroll to "Locations" and click to expand
- Click "Advanced search" to add new locations
- Add or remove locations as needed
- Check the "Location options" setting is correct
- Save your changes
How to use radius targeting effectively
Radius targeting (also called proximity targeting) draws a circle around a specific point and targets everyone within that radius. It is particularly useful for:
- Service-area businesses (plumbers, electricians, cleaners)
- Restaurants, cafes, and hospitality businesses
- Medical and dental practices
- Businesses in areas where Google's named location boundaries do not align with your service area
How to set up radius targeting
- In your campaign's location settings, click "Advanced search"
- Switch to the "Radius" tab
- Enter an address, postcode, or place name as your centre point
- Set your radius distance (in miles or kilometres)
- Click "Target"
Choosing the right radius
The ideal radius depends on your business type:
- Takeaway or delivery: 3-5 miles
- Local service business (plumber, locksmith): 10-20 miles
- Medical or dental practice: 5-15 miles
- Regional business: 20-50 miles
- Destination business (hotel, tourist attraction): May need broader targeting or multiple radii
Ben often uses layered radius targeting - setting up multiple radii at different distances with different bid adjustments. For example:
- 0-5 miles: +20% bid adjustment (highest priority, most likely to convert)
- 5-15 miles: No adjustment (standard bids)
- 15-25 miles: -30% bid adjustment (lower priority, reduced bids)
This ensures you bid most aggressively for the customers closest to you while still capturing demand from further away at a lower cost.
Location exclusions - where NOT to show your ads
Just as important as choosing where to target is choosing where not to target. Location exclusions prevent your ads from showing in specific areas.
When to use exclusions
- Shipping restrictions: An e-commerce brand shipping to mainland UK but not Northern Ireland or the Scottish Highlands
- Service limitations: A plumber covering North Yorkshire but not South Yorkshire
- Franchise territories: When you only have rights to advertise in certain postcodes
- Low-performing areas: Excluding areas where historical data shows poor conversion rates or high costs
How to exclude a location
- In your campaign's location settings, click "Advanced search"
- Search for the location you want to exclude
- Click "Exclude" instead of "Target"
- The excluded location will appear in red in your location list
Remember to set the exclusion option to "Presence: People in your excluded locations" to ensure the exclusion works properly.
Location bid adjustments
Location bid adjustments allow you to increase or decrease your bids for specific locations without creating separate campaigns. This is one of the most powerful optimisation levers in Google Ads.
How bid adjustments work
A bid adjustment is a percentage increase or decrease applied to your base bid for a specific location. For example:
- +20% for London: If your base bid is £1.00, bids for users in London become £1.20
- -40% for Scotland: If your base bid is £1.00, bids for users in Scotland become £0.60
- +50% for your home city: Bid more aggressively where you have the strongest reputation and conversion rates
When to use bid adjustments
- Higher bids for high-converting areas: If data shows London converts at 2x the rate of other cities, increase bids there
- Lower bids for lower-value areas: Reduce bids in areas with lower conversion rates rather than excluding them entirely
- Competitive areas: Increase bids in areas where competitors are aggressive to maintain visibility
- Seasonal adjustments: A seaside hotel might increase bids for coastal postcodes during summer and reduce them in winter
How to set bid adjustments
- Go to your campaign and click "Locations" in the left menu
- You will see a list of your targeted locations with performance data
- Click on the bid adjustment column for the location you want to adjust
- Enter a percentage (positive to increase, negative to decrease)
- Save
Ben recommends reviewing location performance data monthly and adjusting bids based on conversion rate, cost per conversion, and revenue by location. Let data drive your decisions, not assumptions.
Advanced location targeting strategies
Multi-location businesses
If you have multiple locations (branches, offices, franchises), create separate campaigns for each location. This allows you to:
- Set different budgets per location based on demand
- Customise ad copy to mention the local area
- Use location-specific landing pages
- Track performance per location independently
Tiered location targeting
Instead of one broad target area, create tiers based on distance or value:
- Tier 1 (core area): Your highest-value locations with highest bids and dedicated ad copy
- Tier 2 (secondary area): Areas you serve but with standard bids
- Tier 3 (extended area): Areas on the edge of your service range with reduced bids
This gives you granular control over budget allocation across your service area.
Location-specific ad customisers
Use location insertion in your responsive search ads to automatically include the user's city or region in your ad copy. For example, a headline like "{LOCATION(City)} Emergency Plumber" would dynamically insert the user's city, showing "York Emergency Plumber" to users in York and "Leeds Emergency Plumber" to users in Leeds.
This increases relevance and click-through rates without needing separate ad groups for each location.
Competitor location targeting
For some businesses, targeting the areas around competitor locations can be effective. For example, a gym could target a radius around competing gyms with messaging about switching or trying a free trial. Use this tactic carefully and ethically - the goal is to present a better alternative, not to mislead.
Common location targeting mistakes
1. Leaving the default "Presence or interest" setting
This is the number one location targeting mistake. As explained above, "Presence or interest" shows your ads to people who are not physically in your target area. Change to "Presence only" for virtually every local or regional campaign.
2. Targeting too broadly
A local business targeting the entire United Kingdom is wasting the vast majority of its budget. Be specific about where your customers actually are. If you serve a 20-mile radius, target a 20-mile radius - not the whole country.
3. Targeting too narrowly
The opposite mistake is setting a radius that is too small, missing potential customers who would happily travel or order from you. Analyse your existing customer data to understand where your customers actually come from, then set your targeting accordingly.
4. Not using exclusions
If you target a large area, there may be pockets within it that consistently underperform. Instead of reducing your overall targeting, exclude those specific areas while keeping the rest.
5. Ignoring location performance data
Google Ads provides detailed performance data by location. Many advertisers never look at it. Check your location reports regularly to identify which areas are generating the most conversions at the best cost, and which areas are draining budget with poor results.
6. Using the same location targeting for all campaign types
Different campaign types may need different location settings. Your brand awareness Display campaigns might target a wider area than your high-intent Search campaigns. Your remarketing campaigns should target wherever your existing website visitors are, which may be broader than your standard targeting.
7. Not considering mobile vs desktop location accuracy
Location targeting is more accurate on mobile devices (which use GPS) than on desktops (which use IP address geolocation). Desktop location can be inaccurate by 10-20 miles in some cases. If hyper-local accuracy is critical, consider creating mobile-only campaigns for your most localised targeting.
Location targeting is one of those Google Ads settings that seems simple on the surface but has a huge impact on performance when configured properly. The difference between a well-targeted campaign and a poorly targeted one can be the difference between profit and loss.
If you want Ben to audit your location targeting and show you exactly where your budget is going, request a free 90-Day Growth Plan. He will review your geographic setup alongside everything else in your account and give you a clear roadmap to better results.
Frequently asked questions
What is the difference between presence and interest location targeting?
'Presence only' shows ads to people physically in your target area. 'Presence or interest' also shows ads to people who have shown interest in the area but may be located elsewhere. For most businesses, 'Presence only' is the correct setting to avoid wasted spend.
What is radius targeting in Google Ads?
Radius targeting draws a circle around a specific point (your business address, for example) and targets everyone within that distance. You can set the radius in miles or kilometres, making it ideal for service-area businesses.
Can I target specific postcodes in Google Ads?
Yes. Google Ads supports postcode-level targeting in the UK and many other countries. This is useful for hyper-local businesses or for testing performance in specific areas before expanding.
How do I stop my ads showing in the wrong locations?
First, change the targeting option from 'Presence or interest' to 'Presence only.' Then add location exclusions for any specific areas you do not serve. Review the Geographic report regularly to identify any locations generating clicks but no conversions.
Should I use different location targeting for different campaign types?
Yes. Search campaigns typically need tight geographic targeting focused on your service area. Display and remarketing campaigns may benefit from broader targeting to reach users who have already visited your website regardless of their current location.
