In a world where customers expect instant, relevant, and local results, geo-targeting in Google Ads is no longer optional—it’s essential. Whether you’re a local business looking to drive foot traffic or an eCommerce brand trying to reach high-converting regions, geo-targeting (also known as location targeting) allows you to put your ads in front of the right people, in the right places, at the right time.
But here’s the thing—most advertisers don’t use geo-targeting properly. Many either set broad targeting that wastes budget on irrelevant locations, or they miss out on high-value areas because they don’t know the advanced tricks that can take location-based advertising to the next level.
In this guide, we’ll break down exactly how to win local markets using geo-targeting in Google Ads. From basic setup to advanced tactics, you’ll learn how to make your ad spend work smarter—not harder.
What is Geo-Targeting in Google Ads?
Geo-targeting allows you to show your ads only to users in specific locations, whether that’s a country, city, region, or even a tight radius around your business.
Google Ads lets you target locations based on:
✅ Country-level targeting – Useful for international businesses.
✅ City or region targeting – Great for businesses serving multiple cities.
✅ Postcode or ZIP code targeting – Ideal for local services or franchises.
✅ Radius targeting (Proximity targeting) – Perfect for brick-and-mortar stores.
✅ Location groups (Places of Interest, Airports, etc.) – Advanced targeting for hyper-relevant placements.
Using geo-targeting correctly means you can:
✔️ Maximise ad relevance – Show ads to people in areas where they’re most likely to convert.
✔️ Eliminate wasted ad spend – Stop paying for clicks from users outside your service area.
✔️ Dominate local search – Outperform competitors by hyper-targeting your best locations.
Step 1: Setting Up Geo-Targeting in Google Ads
If you haven’t set up geo-targeting before, don’t worry—it’s straightforward:
- Navigate to Location Settings
- Log in to Google Ads
- Click on your campaign
- Go to Settings > Locations
- Choose Your Target Locations
Now, decide where you want to target. You can:
- Enter a specific country, city, region, or postcode
- Use radius targeting (e.g., people within 10 miles of your business)
- Select advanced location options (more on that later)
- Exclude Irrelevant Locations
Just as important as targeting the right areas is excluding the wrong ones. If you’re a London-based plumber, you don’t want to pay for clicks from users in Scotland.
Simply go to Settings > Locations > Exclusions, and remove any areas where you don’t want your ads to show.
Step 2: Advanced Geo-Targeting Tactics to Win Local Markets
Now that you’ve set up basic location targeting, let’s talk about how to supercharge your geo-targeting strategy.
- Use ‘Presence’ Targeting to Eliminate Irrelevant Clicks
Google gives you two key options for targeting:
- Presence: People who are physically in your target location
- Presence or Interest: People who are in OR have shown interest in your target location
Most advertisers leave this setting on default, meaning their ads are shown to people who might just be interested in the location but not actually there (e.g., tourists planning a trip).
👉 Fix this by selecting ‘Presence’ targeting only—this ensures your budget is spent on actual potential customers.
- Use Radius Targeting to Hyper-Target Local Customers
For local businesses, radius targeting (a.k.a. proximity targeting) is one of the best-kept secrets. Instead of targeting an entire city, you can tell Google to only show your ads to people within a 5-mile radius of your shop, office, or service area.
This is perfect for:
- Restaurants, cafes, and retail stores – Target people nearby who are more likely to visit.
- Service-based businesses – Ideal for plumbers, electricians, or delivery-based services.
- Event promotions – Only target users within walking distance of a venue.
👉 How to set it up:
- Go to Settings > Locations > Advanced Search
- Select Radius targeting
- Enter your address and choose the mile/kilometre radius you want to target
💡 Pro Tip: Set up different radius-based bid adjustments (e.g., bid higher for people within 2 miles, lower for those within 10 miles).
- Target High-Value Postcodes (and Exclude Low-Performers)
If you’re running ads in large cities, not all areas are equal. Some neighbourhoods might convert better than others, and some might just waste your ad spend.
👉 Solution: Use postcode-based targeting to prioritise high-performing areas and exclude low-value ones.
Example: If you’re a luxury real estate agent in Manchester, you might want to prioritise high-income postcodes like M20 (Didsbury) and exclude lower-income areas that don’t align with your target market.
💡 Pro Tip: Use your Google Ads Location Reports to see which postcodes are driving conversions, then adjust your targeting accordingly.
- Use Location-Based Bid Adjustments to Maximise ROI
Once you’ve identified which locations perform best, you can use bid adjustments to increase or decrease bids based on performance.
✅ Increase bids in high-converting areas – If people in a specific postcode or region convert at a higher rate, increase bids there.
❌ Decrease bids in low-performing areas – If certain locations are wasting budget with low conversions, lower your bids.
👉 How to set bid adjustments:
- Go to Locations > Select a location
- Click Edit > Adjust Bid
- Increase/decrease bids based on performance data
💡 Example:
If users in Birmingham city centre convert 30% more than those in the suburbs, you might increase bids by 20% in that area to capture more valuable traffic.
- Leverage Localised Ad Copy to Boost CTR & Conversions
Geo-targeting isn’t just about where you show your ads—it’s also about what you say in them.
Using localised ad copy can significantly boost your click-through rate (CTR) and conversions.
Example 1: Generic Ad Copy vs. Localised Ad Copy
🚫 Generic: “Get Affordable Car Insurance – Sign Up Today!”
✅ Localised: “Manchester Drivers: Get Affordable Car Insurance – Save £200 Today!”
By including the city name, the second ad feels more relevant and personal, increasing the likelihood of a click.
💡 Pro Tip: Use dynamic location insertion in Google Ads to automatically include a user’s location in your ad text:
{=html}
CopyEdit
{KeyWord:Best Car Insurance} in {Location(City)}
This way, if someone in Leeds sees the ad, it will automatically say:
👉 “Best Car Insurance in Leeds”
Win Local Markets with Smart Geo-Targeting
Geo-targeting in Google Ads is one of the most powerful ways to ensure your budget is spent on the right audience in the right locations. But most advertisers barely scratch the surface of what’s possible.
By combining advanced geo-targeting tactics like radius targeting, location-based bid adjustments, and postcode segmentation, you can take your local PPC campaigns to the next level—boosting conversions while eliminating wasted spend.
If you’re serious about dominating your local market, RS Digital can help. Let’s fine-tune your Google Ads strategy so you’re reaching the right customers, in the right places, at the right time.
Contact us today through www.RSDigital.co.uk enquiry form or call 01282 452096.
