Google Ads Location Targeting Options and Best Practices

Google Ads location targeting allows advertisers to show their ads to users in specific geographic locations. This powerful targeting option enables businesses to connect with local audiences and drive in-store visits and sales.

In this comprehensive guide, we will cover everything you need to know about Google Ads location targeting.

What is Google Ads Location Targeting? 

Google Ads location targeting refers to the ability to show your ads to users searching Google in specific areas that you define. Location targeting gives you a few great options to pinpoint local audiences:

You can target specific countries, states, cities, ZIP codes, or regions on the map. Want to show your ads within a certain radius of your store? No problem – just set a mileage radius from a central address. And you can even adjust your bids higher or lower for different areas you select. Lots of flexibility!

There are some rock-solid reasons to use location targeting:

For starters, you’ll connect with shoppers right around your business locations. Say you run a pizza shop. Target a 5-mile circle around each restaurant to make sure nearby customers see your deals. Gets those phones ringing for pick-up orders!

Businesses have seen awesome results targeting areas close to their stores. More locally targeted ads equals more foot traffic. And you can get creative with your messaging – maybe call out something that resonates with that city specifically.

The reporting also shows conversion data per location. I’m talking phone calls, form submissions, or even in-store sale transactions. Now, you can learn exactly which cities or ZIP codes bring in the most calls and customers. Pretty cool, right?

So, in a nutshell – laser-focused location targeting helps you engage communities near your stores, boost local sales, and see what areas have the highest ROI. Then, you can double down on the top performers.

Google Ads Location Options When Targeting 

Google Ads offers robust location targeting settings across campaigns, ad groups, and ads. Major location options include:

Campaign-Level Location Targeting

You can set location targeting at the campaign level to define the overall countries, regions, or areas you want to target. Campaign location options:

• Countries: Target one or multiple countries
• Geographic regions: Target continental regions like North America
• Territories: Target territories like Puerto Rico
• Location options: Target by city, state, ZIP code, etc.

The best practice is to use campaign targeting for your primary countries and territories. Then, you can get more granular within ad groups.

Ad Group Location Targeting

Ad group location targeting lets you specify different areas for each ad group within a campaign. Common options at the ad group level:

• Radius targeting: Target a radius around a business location
• City and state targeting: Target specific cities or states/provinces
• ZIP code targeting: Target users searching in specific ZIP code areas
• Bid adjustments: Set different bids by location to optimise spend

With ad group location targeting, you can align different ad copy, landing pages, and bids to the appropriate regions your business serves. This makes your account more efficient.

Location Options for Keyword Targeting

In addition to campaign and ad group location targeting, you can also set location targeting for individual keywords. For example:

• Target broad match keywords like “food delivery” to a radius around your service area to attract nearby users searching for your services.
• Use negative location targeting on brand keywords if you don’t serve a particular remote region – this saves wasted spend.

Location Extensions on Ads

Some ad extensions, like location extensions and call extensions, give you more location-based options directly on ads, like showing your business address, phone number with area code, or distance to your store’s location.

Top 5 Best Practices for Google Ads Location Targeting 

Utilising precise location targeting is key for connecting with audiences near your business and driving conversions both online and offline. Review these top best practices for success:

1. Align Targeting with Your Locations and Service Regions

Set detailed location targeting around your brick-and-mortar stores. Make sure you are showing ads to users within the geographic areas you can realistically service or deliver to.

Regularly update targeting as your business expands into new territories or if you open/close store locations.

2. Use Radius Targeting to Reach Nearby Audiences

Leverage radius location targeting with mile radius around your stores to target local users likely to visit your physical locations.

Typical best-practice radius sizes:

• 1 mile radius: Target very nearby users who are within walking distance
• 5 miles: Reach a local driving radius
• 10+ mile radius: Expand your net around stores to reach the metro area

Monitor search impression share and location performance reports to optimise your radius sizes.

3. Set Location-Based Bid Adjustments

To maximise conversions, set higher bids for regions that overperform for your desired conversions like calls or form fills. Lower bids for locations generating less valuable traffic.

If you have stores across the U.S., you might find better conversion rates from users in certain states or cities. Increase bids by +10-25% in high-performing areas and decrease bids in regions that convert poorly.

4. Personalize Ads and Landing Pages by Location

To improve CTR and conversions, tailor your ad text and landing pages to include information, offers, or examples relevant to each location’s audience.

For a national pizza chain, test ads that mention “NY-style pizza” when targeting New York City and “Chicago-style deep dish” when targeting Illinois.

5. Analyse Location Conversion Data

Dive into your Google Ads location report to view conversion data for each location target. Assess which cities or radius targets drive the most calls, email signups, online sales, or offline conversions tracked via imported store transactions.

Identify your best-converting locations. Shift more budget to the highest-ROI targets and scale back poor performers.

The Importance of Location Targeting for Businesses 

Location targeting in Google Ads provides critical advantages for advertisers looking to connect with nearby audiences and drive in-store traffic and sales. Key benefits include:

1. Increase Store Visits and Foot Traffic

For retailers, restaurants, and other brick-and-mortar businesses, location targeting maximises store visits from nearby searchers. Instead of advertising across an entire state, limit targeting to a 5-15 mile radius around each store.

Pull in searchers who are near your locations with geo-targeted text ads. With calls to action like “Order Online for Pickup” or “Stop by Today”, you can convert local store traffic directly via Google ads.

2. Capture Intent-Based Local Search Volume

People searching for products or services near them have strong purchase intent. For example, a search like [pizza places in Chicago tonight] indicates an immediate need.

Connecting your ads to these high-intent searches in your served regions provides a major opportunity to drive same-day orders, calls, and walk-ins.

3. Increase Ad Relevance with Location Extensions

Location extensions show your business address, phone number, and distance on text ads, increasing relevance for nearby searchers.

This extra visibility into your local presence helps searchers feel more confident visiting your store locations.

4. Measure Local Conversion Tracking

Sync offline conversions from calls and in-store sales to each location-targeted ad group. Now, you can see total revenue influenced by geo-targeted ads per store.

This proves the ROI of targeting specific zones, highlighting your best and worst-performing regions. Optimise bids and budgets accordingly.

With conversion tracking, every ad click tied to an eventual local sale is visible. This transforms your local advertising strategy, enabling you to double down on profitable areas.

Current Trends with Location Targeting in Google Ads 

Location targeting continues to become more precise and integrated across mobile and local ad formats. Key trends include:

Hyper-Targeting Down to the Neighborhood

With over 30% of searches being local, smart brands are getting ultra-targeted – right down to specific ZIP codes and neighbourhoods vs just cities. This hyper-local approach captures buyers who are literally searching in your store’s area.

Integrate Online and Offline Data

Savvy advertisers build custom audiences from their retail transaction histories and loyalty member lists. So you can target past in-store shoppers with relevant local ads while they’re browsing online – pretty clever!

Automated Bidding for Local Sales

Algorithms use offline sales data to auto-bid higher for locations, driving more profit – and taking optimisation to the next level. One retailer saw a 20% higher ROI in top markets with this local bid automation.

Showcase Local Inventory

New local inventory ads display what products are actually in stock right now for nearby stores. They update availability on the fly- which is huge for shoppers wanting to see or buy items locally.

As online and offline data merges, expect hyper-targeted local ads that dynamically respond to buyer searches and behaviours in specific areas in real-time.

Location Targeting Campaign Examples and Case Studies 

Let’s explore examples of effective location-targeting strategies:

Smart Local Targeting for Health Care Providers

A regional hospital was advertising statewide, even though almost all patients were local. By analysing patient zip codes, they shifted targeting to:

• Tight radius targets around each facility – started with 5 miles, eventually reaching 20 miles
• Specific metro zip codes where existing patients lived
• 25% bid increase in metro area, decreased low-value rural bids
•  Targeted high-income neighbourhoods

The results? Major improvements:

• 30% lower cost-per-click
•  15% higher click-through rate
•  40% more monthly conversions

And get this – with similar hyper-local tactics, health systems have seen conversion rates up over 50% recently!

Ongoing refinements hone in on the exact metro areas driving the most appointments. This not only reduces wasted spending but also connects with high-intent searchers ready to book appointments in their area.

By eliminating irrelevant statewide targeting and optimising for metro conversions, health advertisers see huge performance gains and greater patient ROI.

Conclusion

When you take the time to refine your radius targets, bid adjustments, and tailor creative for each area, you’ll be rewarded with more high-intent traffic, phone calls, and sales from nearby searchers.

It’s work upfront, but pays off over time by connecting with ready-to-buy customers in your backyard. The beauty is as your locations and service territories expand over the years, you simply update your Google Ads settings to match. So, location targeting evolves along with your business.

Put these best practices of Google ads location targeting into play, and you’ll be on your way to local marketing success!

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