How Accurate is Google Adwords Location Targeting?

Table of Contents

• 🎯 Why Accurate Location Targeting Matters
• 🧠 How to Set Up Google Ads Location Targeting Correctly
  • ✅ Choosing Your Target Locations
  • ⚡ Refining Location Settings
• 🚀 Advanced Google Ads Geotargeting Techniques
  • 💡 Using Bid Adjustments
  • 🔍 Layering Audience & Demographics
  • 📡 Leveraging Exclusion Zones
• ⚠️ Common Location Targeting Mistakes to Avoid
• 📊 Case Study: Boosting ROI with Smarter Location Targeting
• ❓ Frequently Asked Questions (FAQs)
• 📢 Get Expert Help with Google Ads Location Targeting

When it comes to setting up adwords you need to do a little bit of planning to make sure you target the correct customers who are looking for your products. This could be people overseas who are travelling to New Zealand, or it could be people sending gifts home. Location targeting lets you target people in a certain town, city or country. Lets say you see ski passes in Queenstown You could advertise using google ads to people in Queenstown as well as nationally and internationally. But the keywords they use may vary slightly.

e.g People looking for your service who are currently in Queenstown New Zealand ,might just type “ski pass” into Google

 People in Australia looking for your service based in Queenstown, New Zealand might type “ski pass Queenstown”.

What is Google AdWords Location Targeting & Why It’s Critical for ROI

Google AdWords Location Targeting (also known as Google Ads geotargeting) allows advertisers to show ads only to users within specific geographic regions. Whether you’re targeting local customers in New Zealand, specific suburbs in Australia, or a global audience, using accurate location targeting ensures you’re spending your ad budget on qualified leads. Poor location targeting often leads to wasted ad spend and irrelevant clicks, ultimately hurting ROI.

Learn more about how it all works in this video

TRANSCRIPTION

Hi, Lucy Ross here from Ecommerce Marketing with the Google AdWords Update. Now one frequently asked question I get when I run Google AdWords trainings with businesses is how accurate is the location targeting in Google AdWords in New Zealand?

First, I wanted to run through the different factors Google considers when it is zooming you up for that location and then we can look at some specific examples.

Essentially when you type in a location to Google, when you actually use a word like “online marketing Christchurch”, because you have typed the keyword Christchurch in, Google factors that in when it serves up the results.

It might also look at the IP address of your computer and say Okay that IP address is located in Christchurch so that’s another factor that makes things show up in Christchurch to that user.That would be more useful than perhaps if you just typed in online marketing or beauty parlour or Thai restaurant, so that it only shows you Christchurch related results in instances that you hadn’t added the keyword.

Then it also takes into a account the language in the country, you’ll see it in your Google profile.

If you have a Google-plus account or a Gmail address you make sure to go and fill out data in that account and you would have specified perhaps that you speak English and you’re located in Auckland or Christchurch.

Google also factors that in when serving up results.

If you’re using location tracking for your business to say, OK I’m a local masseuse and I only want to tailor to people who are within a 5K radius or a 10K radius of my business.

In the past, I haven’t seen the targeting for Google to be as refined as we would like, so it’s usually a good idea to either target by a keyword or maybe expand your radius a little bit.

That’s just because New Zealand is such a small country, we don’t have the IP ranges that are specific to a town or a city necessarily.

So Google might not have a way of targeting and you might find when you set up an account for a 3 or 5 or 10K radius that you’re not getting any data. In the cases of small towns, I know it’s annoying that New Zealand is a small country and we don’t have this sort of same data as people in the States or Australia. So we’re setting it a little bit wider and using your keyword to refine.

In summation, location targeting seems to work at a city or town level, but when it comes to targeting geographic radius’s, you want to test and measure and see how much data they have around there and if it’s actually working.

If you find you’re not getting any impressions, expand the data and use keywords to target your customers.

This is Lucy Ross from Ecommerce Marketing with another AdWords Update. If you’d like to receive more helpful tips like this and explanations, be sure to sign up to our newsletter. If you need any help with Google AdWords, we offer one-on-one google adwords training and google ads management services or digital marketing coaching to help you get up to speed and build a full marketing machine.

🎯 Mastering Google AdWords Location Targeting: Get Your Ads in Front of the Right Audience

If you’re running Google Ads in New Zealand, Australia, or targeting multiple regions, location targeting (also known as Google Ads geotargeting) can make or break your campaign success. Whether you’re trying to attract local customers or expand into new territories, ensuring that your ads reach the right audience at the right time is crucial.

However, many advertisers overlook the nuances of location targeting—leading to wasted ad spend and irrelevant clicks.

📍 Why Accurate Location Targeting Matters in Google Ads

Location targeting in Google Ads is more than just choosing a country or city. Done correctly, it allows you to:

✅ Increase Conversions: Show ads to users in the areas most likely to convert.
✅ Reduce Wasted Ad Spend: Prevent clicks from regions that won’t generate leads or sales.
✅ Enhance Local Relevance: Target customers with location-specific offers or promotions.
✅ Improve Ad Relevance & Quality Score: Google rewards precise targeting with higher ad relevance, improving your overall campaign performance.

🧠 How to Set Up Google Ads Location Targeting Correctly

If you’re just getting started or want to refine your settings, follow these steps to ensure your ads are being shown in the right locations:

1. Navigate to Your Campaign Settings

• Open your Google Ads Dashboard.

• Select the campaign you want to apply location targeting to.

• Click on ‘Settings’ and scroll down to ‘Locations’.

2. Choose Your Target Locations

Google Ads gives you 3 main options:

• Countries: Ideal for international campaigns or e-commerce stores shipping to multiple regions.

• Cities or Regions: Perfect for local businesses or service-based companies targeting specific areas.

• Radius Targeting: Target users within a certain distance from your business location (e.g., 5km, 10km).

👉 Pro Tip: Use radius targeting for brick-and-mortar stores or location-based services to capture customers who are nearby and ready to convert.

3. Refining Location Settings for Precision

For even more control over where your ads appear, refine your targeting using these advanced options:

✅ Presence or Interest Targeting: Choose to show ads only to people physically located in your target area or those who have shown interest in the location.
✅ Exclude Irrelevant Locations: Avoid showing ads in regions where you don’t deliver or have no business presence.

🚀 Advanced Google Ads Geotargeting Techniques to Maximise ROI

Once you’ve mastered the basics, it’s time to explore advanced location targeting options to supercharge your results.

🎯 1. Use Bid Adjustments Based on Location Performance

Bid higher in regions where conversions are more likely and reduce bids in underperforming areas. This ensures your budget is allocated effectively.

👉 Example:
If you’re targeting both Auckland and Wellington but conversions from Auckland are 25% higher, increase your bids for Auckland to capture more qualified leads.

🔍 2. Layer Audience & Demographic Targeting with Locations

Combine location targeting with detailed demographic and audience insights to pinpoint your ideal customer. This approach allows you to refine your ad delivery to high-intent users.

📡 3. Leverage Exclusion Zones to Avoid Irrelevant Clicks

Don’t just focus on where you want to show your ads—think about where you don’t. Exclude areas that aren’t relevant to avoid spending on clicks that won’t convert.

👉 Pro Tip: If you’re running ads for a Christchurch-based florist that doesn’t offer nationwide delivery, exclude other regions to avoid irrelevant traffic.

⚠️ Common Location Targeting Mistakes to Avoid

Even seasoned marketers make critical errors with location targeting. Here’s what to watch out for:

❌ Overly Broad Targeting: Targeting an entire country when only certain cities convert.
❌ Forgetting to Exclude Irrelevant Areas: Wasting budget on regions outside your service area.
❌ Ignoring Location Bid Adjustments: Treating all regions the same despite performance differences.

❓ Frequently Asked Questions (FAQs)

1. How do I target a specific city in Google Ads?  Go to your campaign’s ‘Settings’, click on ‘Locations’, and choose the city or region you want to target. Refine your audience with advanced settings for better accuracy.

2. What is radius targeting, and how does it work?  Radius targeting lets you target users within a set distance (e.g., 5km or 10km) around your location. Ideal for local businesses or service providers looking to attract nearby customers.

3. Can I exclude certain locations in Google Ads?  Yes, you can exclude regions where you don’t want your ads to show. This helps prevent wasted spend and ensures you only target relevant audiences.

📢 Get Expert Help with Google Ads Location Targeting in NZ & AU

If you’re unsure whether your Google Ads location targeting is optimised for maximum ROI, we’re here to help.

✅ Why Choose Us?

• Proven expertise in managing Google Ads for NZ and AU businesses.

• Tailored geotargeting strategies to minimise wasted ad spend.

• In-depth analysis and performance tracking to refine your campaigns.