Geo-targeting (location targeting) in Google Ads allows advertisers to show ads only to users in specific geographic locations — countries, regions, cities, radius around a postcode, or custom-drawn areas. UK businesses typically use geo-targeting to restrict ads to their service area (a plumber targeting a 15-mile radius from their location), focus budget on their highest-value markets (a national retailer targeting London, Manchester, and Birmingham with higher bids), or exclude irrelevant locations (a UK-only business excluding all non-UK traffic).
Geo-targeting is one of the most fundamental campaign settings in Google Ads and one of the most commonly misconfigured. The default location option — 'People in, or who show interest in, your targeted locations' — can show your ads to users outside your target area who are searching about that location. For most UK businesses, 'People in your targeted locations' (presence-based) is the correct setting to ensure ads only reach users physically located in the target area.
Geo-targeting configuration best practices
- Use 'Presence: People in your targeted locations' — not the default 'interested in' option, which allows out-of-area searches
- Set location exclusions — explicitly exclude areas where you cannot serve or do not want business
- Radius targeting for local service businesses — target a defined mile or kilometre radius around your location
- City and region targeting — for businesses serving multiple specific cities, target each explicitly
- Location bid adjustments — bid higher for higher-converting locations; lower for peripheral areas
- Separate campaigns by location — for very different markets (London vs. rest of UK), separate campaigns enable different budgets, bids, and ad copy
- Review location report — regularly check which locations are actually triggering ads and converting
Location targeting determines which geographic areas can see your ads at all. Location bid adjustments modify the bid up or down for users in specific locations within your targeting. For example: targeting the UK nationally (all UK users can see ads) but setting a +25% bid adjustment for London (increasing bids for London users who may be higher-value). You can combine broad targeting with selective bid adjustments to balance reach with efficiency — rather than excluding areas, you reduce bids where conversions are less valuable.
Service-area businesses (plumbers, electricians, local shops) should use precise radius or city targeting focused on their actual catchment area — broader targeting wastes budget on traffic they cannot serve. National businesses should target the UK nationally but use bid adjustments to weight budget toward highest-value markets. Ecommerce businesses should typically start with UK-wide targeting and apply bid adjustments based on conversion rate data by region. Split testing different geo configurations (UK-wide vs city-specific) with equal budget is the most reliable way to identify the optimal geographic strategy.