A Complete Guide to Setting Up Geotargeting in Google Ads

AdWords geotargeting transforms how businesses reach their ideal customers. Instead of broadcasting your ads across Australia and hoping for the best, you can pinpoint exactly where your ads appear – down to a specific suburb or even a radius around your storefront.

This targeting precision means your marketing budget works harder. Local businesses stop wasting spend on clicks from Sydney when they only service Melbourne. National companies can test different regions before rolling out campaigns nationwide. The result? Higher conversion rates, lower costs per acquisition, and better return on ad spend.

How AdWords Geotargeting Works

Google determines a user’s location through multiple signals: their IP address, GPS data from mobile devices, and search history patterns. When someone searches for your keywords, Google checks if they’re in your targeted locations before showing your ads.

The system works in real-time. A Brisbane resident searching for “digital marketing agency” whilst visiting Melbourne will see ads targeted to Melbourne, not Brisbane. This location accuracy has improved dramatically – Google now identifies user locations within metres, not kilometres.

You control whether to target people physically in your chosen locations or those searching for your locations whilst elsewhere. This flexibility matters for businesses with different customer behaviours. Hotels might target people searching for their city from anywhere. Restaurants typically target only people physically nearby.

Setting Up Location Targeting

Start in your AdWords account by selecting the campaign you want to modify. Click “Settings” then “Locations” to access the targeting options. By default, campaigns target all of Australia – fine for national businesses, but wasteful for local ones.

Basic Location Selection

Type your target location in the search box. Google suggests cities, postcodes, states, and even specific landmarks. Select from the dropdown and click “Add”. You can add multiple locations – useful for businesses with several service areas or store locations.

The interface shows each selected location with estimated weekly impressions. This data helps you understand potential reach before launching campaigns. High-population areas like Sydney CBD show massive impression volumes. Smaller suburbs might show “Low volume” warnings.

Radius Targeting Setup

Click “Advanced search” then “Radius targeting” for precise geographical control. Enter your business address or a specific landmark, then set your radius in kilometres. The map preview shows your exact coverage area.

We recommend starting with a 10-15km radius for suburban businesses, 25-50km for regional centres. You can always adjust based on performance data. Some industries need tighter targeting – emergency locksmiths might use 5km, whilst wedding photographers could target 100km+.

• Restaurant/cafe: 5-10km radius
• Retail store: 15-25km radius
• Professional services: 25-50km radius
• Specialised services: 50-100km+ radius

Location Exclusions Strategy

Excluding locations can be more valuable than including them. Maybe you deliver Australia-wide except Tasmania due to shipping costs. Or you’re a Melbourne business wanting to avoid expensive Sydney clicks from non-converting traffic.

To exclude locations, click “Exclusions” in the location targeting section. Add locations the same way as inclusions. Exclusions override inclusions, so if you target “Australia” but exclude “Sydney”, Sydney users won’t see your ads.

Common exclusion scenarios include competitors’ neighbourhoods, areas with poor delivery logistics, or regions where you’ve had compliance issues. Some businesses exclude their own city centre to focus on suburban customers who convert better.

Advanced Targeting Options

Location Intent Settings

Under “Advanced location options”, you’ll find three targeting choices that dramatically affect who sees your ads:

• Presence or interest: Shows ads to people in your targeted locations OR searching for your locations
• Presence: Only people physically in your targeted locations
• Search interest: Only people searching for your targeted locations (regardless of physical location)

“Presence” works best for local businesses needing foot traffic. “Search interest” suits travel, accommodation, and services where people research from afar. “Presence or interest” casts the widest net but can waste budget on irrelevant clicks.

Bid Adjustments by Location

Once your campaign runs, analyse performance by location. Some areas convert better than others. High-converting locations deserve bid increases; poor performers need decreases or exclusion.

Go to “Locations” in your campaign to see performance data. Set bid adjustments from -90% to +900%. A +50% adjustment means you’ll bid $1.50 when your base bid is $1.00. Use negative adjustments to reduce spend in underperforming areas whilst keeping them active.

Analysing Location Performance

Location reporting reveals which areas drive your best results. Click the “Geographic” report to see performance by city, region, or custom radius. Sort by conversion rate, cost per conversion, or return on ad spend to identify patterns.

Look for locations with high impression volumes but low conversion rates – classic budget wasters. Conversely, small locations with exceptional conversion rates might justify expanded targeting or higher bids. This data guides both immediate optimisations and long-term strategy.

Export location data monthly to track trends. Seasonal businesses often see shifting geographic patterns. Tourist areas might convert well in summer but poorly in winter. Tracking the right metrics helps you anticipate these changes and adjust targeting proactively.

Optimisation Best Practices

Start Broad, Then Narrow

Begin with wider geographic targeting to gather performance data. After 2-4 weeks, analyse which locations convert best and adjust accordingly. This approach prevents premature optimisation based on insufficient data.

Many businesses start too narrow and miss valuable opportunities. A Fortitude Valley restaurant might initially target only their suburb, missing nearby areas like New Farm or Teneriffe where residents regularly dine out.

Align Ad Copy with Locations

Include location-specific elements in your ads. “Melbourne Digital Marketing” performs better than generic “Digital Marketing” for Melbourne-targeted campaigns. Use ad customisers to automatically insert location names based on where users are searching.

Location extensions show your business address directly in ads, increasing credibility and click-through rates. Call extensions let mobile users phone immediately. These extensions work particularly well for local businesses combining AdWords with strong local SEO.

Test Different Radius Sizes

Create duplicate campaigns with different radius settings to test optimal coverage. Run a 15km radius against a 30km radius to see which delivers better return on investment. The larger radius might have lower conversion rates but higher total conversions.

Consider traffic patterns and competitor density when setting radii. A business near major highways might effectively target 50km+ because people travel further. Dense urban areas with many competitors might need tighter targeting to stay profitable.

Common Geotargeting Mistakes

The biggest mistake is targeting too broadly out of fear of missing opportunities. Broad targeting dilutes your message and wastes budget on unlikely converters. Better to dominate a smaller area than get lost in a large one.

Another error is ignoring mobile vs desktop location differences. Mobile users often search while on the move, creating different targeting needs than desktop users planning ahead. Consider separate campaigns or bid adjustments for device types.

Many businesses also forget to exclude areas where they cannot actually service customers. Targeting Adelaide when you can’t deliver there creates frustrated users and wasted ad spend. Always match your targeting to your actual service capabilities.

Finally, businesses often set up geotargeting but never review performance data. Creating effective AdWords campaigns requires ongoing optimisation based on real performance metrics, not set-and-forget approaches.

Integration with Other Marketing Channels

Geotargeting works best as part of integrated marketing campaigns. Use the same geographic focus across Google Ads, Facebook advertising, and local SEO efforts. This consistency reinforces your local presence and maximises budget efficiency.

Consider how your broader digital marketing strategy supports location-based campaigns. Your website should have location-specific landing pages that match your geographic targeting. Blog content can target local keywords and topics.

Email marketing can segment by location to send relevant offers. Social media can highlight location-specific events or promotions. When all channels align geographically, you create a cohesive local presence that builds trust and drives conversions.

Frequently Asked Questions