Geotargeting is one of the most powerful tools in a PPC advertiser’s arsenal.
Whether you’re running ads for a local business, an international ecommerce brand, or a luxury travel destination, targeting the right locations can significantly impact performance.
While most advertisers understand the basics (i.e., choosing countries, cities, or setting a radius), many aren’t fully leveraging the more advanced geotargeting capabilities available in Google Ads today.
The ability to target based on intent, real-time conditions, competitor locations, and hyperlocal precision can give campaigns a serious competitive edge.
This article explores the full spectrum of geotargeting tactics, from the basics to the more advanced strategies that can refine audience targeting, improve conversion rates, and increase return on ad spend (ROAS).
Traditional geotargeting methods
1. Country and regional targeting
The simplest form of geotargeting allows businesses to show ads to users based on country or regional selection.
This works well for brands operating at scale but lacks precision for businesses that rely on local demand.
Example
A UK-based SaaS company may want to target the U.S. market but only focus on high-adoption regions like New York, California, and Texas rather than running ads across all 50 states.
Limitations
Treats all areas within a country as equal, even though demand and competition vary.
Leads to wasted spend if not refined with bid adjustments.
2. City and postal code targeting
Focusing on specific cities or postcodes allows businesses to reach local audiences more precisely.
This benefits industries such as real estate, hospitality, and professional services.
Example
A law firm in London might target users searching for “divorce lawyer near me” but only within London postcodes, ensuring that leads are relevant and within their service area.
Limitations
Too restrictive if potential customers are willing to travel from outside the targeted area.
Requires regular analysis to avoid missing valuable leads from nearby locations.
3. Radius (proximity) targeting
Radius targeting allows advertisers to show ads to users within a defined distance from a specific location.
This is useful for businesses that rely on foot traffic or serve customers in a limited geographic area.
Example
A premium car dealership in Manchester could set up a 10-mile radius targeting its showroom to reach high-intent buyers searching for “luxury cars for sale near me” or “BMW dealership Manchester.” By refining the radius, the dealership ensures ads reach potential customers likely to visit in person for a test drive.
Limitations
In competitive urban areas, limiting the radius too much may exclude potential customers willing to travel further for high-value purchases.
In rural areas, expanding the radius may dilute relevance if the dealership’s offerings are not compelling enough to attract long-distance buyers.
4. Location-based bid adjustments
Rather than outright including or excluding locations, advertisers can adjust bids based on how different regions perform in terms of conversions, revenue, or ROAS.
Example
A high-end jewelry brand finds that conversion rates are higher in Mayfair and Kensington than in other parts of London. To optimize budget efficiency, they increase bids by 25% in those areas while decreasing bids elsewhere.
Limitations
Requires continuous optimization to avoid over- or under-bidding in specific areas.
Location performance changes over time due to seasonality and local market trends.
Dig deeper: Location targeting in Google Ads: Balancing automation and control
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Advanced geotargeting tactics
5. Targeting based on location intent
Google Ads allows advertisers to target users based on where they are and what they are searching for.
This is useful for the travel, real estate, and luxury industries, where the decision-making process often happens before the user is physically in the target location.