Understanding Location Targeting In Google Ads

Published by Algorithmic Global on

Google Ads location targeting is a feature that allows businesses to target their ads to their audience in specific areas, and this will also allow them to focus the budget of a campaign in a particular location. 

The areas that you choose to target can vary at many levels, from countries, cities, regions, zip codes, or a set radius around a particular address. 

The area type you choose depends on the business goals, reach, and budget. For instance, if the business is local, a restaurant, in this case, it would not make any sense to target areas in a different state, as opposed to an e-commerce platform. In this case, that particular business has the flexibility to target any areas within the country. So it is essential to understand a business objective while keeping the other factors in mind, such as reach and budget.

Location Targeting Options

There are a few different locations targeting options businesses can choose from within Google Ads, which include:

  • People in, or who show interest in, your targeted locations (recommended)
  • People in, or who are regularly in, your targeted locations
  • People searching for your targeted locations

The option you choose depends on your business and your target market for the campaign. Referring back to the previous example, depending on the budget, a restaurant can pick either the first or second option when deciding what location targeting to set. People in or who show interest in, your targeted location, will show the ads to people who are interested in that target location, and those users could be located anywhere in the world.

However, if the restaurant only wanted customers in their local area, they could set the ads to show to ‘People in, or who are regularly in, your targeted locations’ with the location they chose. The ads will then be displayed by users within the specific areas chosen. It is essential to understand the different targeting features within Google Ads as this will ensure that the budget does not go to waste on users that live outside of the target area and those who are not going to convert.

The Advantages of Targeting At The Radius Level 

The advantage of setting a radius location is that its a great way to target a specific area quickly. Businesses can set the ads to show to people in or regularly in a radius area of 10 miles or more around their business address. This option is a lot more efficient than typing in each area, whether it be a list of cities or zip codes individually while targeting users who are more likely to convert.

Location Exclusion Options

There are two options when it comes to excluded locations. These are:

  • People in, or who show interest in, your excluded locations (recommended)
  • People in your excluded locations

Similar to options for targeting locations, excluded locations can be set by country, city, region, or at a zip code level. Business needs to exclude locations they would not like to display ads to people in a specific area; this feature is the best business practice to implement when creating an AdWords account as it prevents budget waste.

The Importance of Location Targeting in Google Ads

The benefit of using location targeting on your Google Ads campaign is that it allows you to focus your digital advertising money optimally, by targeting the users that you want. It prevents your business’s digital advertising budget from being spent on users who are less likely to convert, and you can target the areas that matter to your business and exclude any areas that are not relevant. Setting a location targeting strategy is one of the best ways to optimize your AdWords account.

Location Bid Adjustments

Another great feature within Google Ads is location bid adjustments, and this allows you to focus the budget on any areas that are performing the best. For example, if one area is getting a lot of clicks or impressions, its best to utilize the bid adjustment and increase the bid for that area to ensure that you are not losing any potential traffic from your competitors.

Google Ads User Location Report

Within Google Ads, businesses can utilize the user location report to see where your clicks are coming from in terms of location. Companies can see how specific areas are performing, and it can help advertising strategists analyze which locations would benefit from a bid adjustment. The user location report provides the following metrics for strategists to measure in terms of impressions, clicks, average CPC, CTR, and more. These statistics can all help in forming a decision for your advertising strategy.

Google Ads location targeting is an effective way to display your ads, or not show your ads to users in specific locations. It has benefits for any business in different industries, and if optimized correctly, location targeting can increase CTR, conversion, and ROI. To find out more, contact us today to speak to a Google Ads specialist.


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