When running a Google Ads campaign, one of the most overlooked yet critical decisions is location targeting. Many businesses focus heavily on keywords, ad copy, and budgets, but fail to consider where their ads are actually being shown. This oversight can lead to wasted spend, irrelevant clicks, and poor conversion rates. By setting the correct location targeting, you ensure that your ads reach the right audience, in the right place, at the right time.
In this blog, we will explore why location targeting matters, how it impacts your route to market, and why a localised approach often delivers better results than a broad nationwide campaign. We will also use the example of selling a small strip of land in the West Midlands to illustrate how precise targeting can save money and improve outcomes.
Why Location Targeting Matters
Google Ads allows advertisers to choose where their ads appear geographically. This can be as broad as an entire country or as narrow as a specific postcode. The choice you make directly affects who sees your ad, and therefore who clicks on it.
- Relevance: Ads shown to people outside your service area are unlikely to convert.
- Cost Efficiency: Every irrelevant click drains your budget without delivering value.
- Conversion Rates: Targeting the right location increases the likelihood of enquiries, sales, or leads.
- User Experience: Customers expect ads to be relevant to their location. Seeing ads for services they cannot access creates frustration.
For businesses with a defined geographic market, location targeting is not optional—it is essential.
Thinking About the Ad Offering
Your ad offering should always dictate your targeting strategy. If you are selling a product or service that can be delivered nationwide, then a broader campaign may make sense. However, if your offering is tied to a specific location, you must narrow your targeting accordingly.
Take the example of selling a small strip of land in the West Midlands. This is a highly localised offering. The likelihood of someone in Scotland or Cornwall being interested in purchasing that land is slim. Running a nationwide campaign would generate clicks from people who cannot realistically act on the offer.
Instead, by setting a radius of 50 miles around the land’s location, you ensure that your ads are shown to people who are geographically close enough to consider the purchase. This increases relevance, reduces wasted spend, and improves the quality of your leads.
Route to Market and Audience Behaviour
When planning your route to market, location targeting plays a central role. Consider how your audience behaves:
- Local Buyers: People searching for land or property are often looking within a commutable distance.
- Regional Interest: Investors may be interested in opportunities within their region but not beyond.
- National Irrelevance: A person in London searching for land is unlikely to travel to the West Midlands for a small plot.
By aligning your targeting with audience behaviour, you create a more efficient route to market. You are not just advertising—you are strategically placing your offering in front of the people most likely to act.
The Cost of Wasted Clicks
One of the biggest dangers of poor location targeting is wasted clicks. Every time someone outside your target area clicks your ad, you pay for it. These costs add up quickly and can drain your budget without delivering results.
For example:
- A nationwide campaign for a small strip of land might generate 500 clicks in a month.
- If 70% of those clicks come from outside the West Midlands, that is 350 wasted clicks.
- At an average cost-per-click of £1.50, you have wasted £525 in a single month.
By narrowing your targeting to a 50-mile radius, you eliminate most of those irrelevant clicks. Your budget is spent on people who are actually able to purchase the land, making every pound more effective.
Examples of Localised vs Nationwide Campaigns
Example 1: Selling Land in the West Midlands
- Nationwide Campaign: Ads shown across the UK generate clicks from people in areas far removed from the land. High spend, low conversion.
- Localised Campaign: Ads restricted to a 50-mile radius around the land attract buyers and investors who can realistically visit and purchase. Lower spend, higher conversion.
Example 2: Local Restaurant in Manchester
- Nationwide Campaign: Ads shown to people in London, Cardiff, and Edinburgh. None of them will travel for dinner. Budget wasted.
- Localised Campaign: Ads shown within 10 miles of the restaurant. People nearby see the ad, book a table, and become paying customers.
Example 3: Online Retailer with Nationwide Delivery
- Nationwide Campaign: Ads shown across the UK make sense because the product can be shipped anywhere.
- Localised Campaign: Restricting ads to one region would unnecessarily limit reach.
These examples highlight the importance of aligning location targeting with the nature of your offering.
Balancing Reach and Relevance
The challenge in location targeting is balancing reach with relevance. Too broad, and you waste money. Too narrow, and you may miss potential customers. The key is to understand your market and set boundaries that maximise efficiency.
For the land sale example, a 50-mile radius is a sensible choice. It captures local buyers and regional investors without extending into irrelevant areas. For other businesses, the radius may be larger or smaller depending on the product, service, and audience.
Tools and Techniques for Effective Targeting
Google Ads provides several tools to refine your location targeting:
- Radius Targeting: Set a specific distance around a location. Ideal for localised offerings.
- Postcode Targeting: Focus on specific postcodes where your audience is concentrated.
- Exclusion Zones: Prevent ads from showing in areas where you know demand is low.
- Location Bid Adjustments: Increase or decrease bids based on performance in different areas.
By using these tools, you can fine-tune your campaign to maximise relevance and minimise waste.
Measuring Success
To ensure your location targeting is effective, you must measure results. Key metrics include:
- Click-Through Rate (CTR): Higher CTR indicates your ads are relevant to the audience.
- Conversion Rate: The percentage of clicks that lead to enquiries or sales.
- Cost Per Conversion: How much you spend to generate a lead or sale.
- Geographic Performance Reports: Google Ads provides data on where your clicks and conversions are coming from.
By analysing these metrics, you can adjust your targeting to improve performance over time.
Common Mistakes in Location Targeting
Many advertisers make the following mistakes:
- Targeting Too Broadly: Running nationwide campaigns for local offerings.
- Ignoring Exclusions: Failing to exclude areas where demand is irrelevant.
- Not Reviewing Data: Neglecting geographic performance reports.
- Assuming Nationwide Equals Better: Believing that more reach automatically means more success.
Avoiding these mistakes can save significant budget and improve campaign outcomes.
Strategic Benefits of Localised Campaigns
Beyond cost efficiency, localised campaigns offer several strategic benefits:
- Stronger Engagement: Local audiences are more likely to engage with ads that feel relevant.
- Community Connection: Local targeting builds trust and credibility within the community.
- Better ROI: Higher conversion rates lead to better return on investment.
- Scalability: Successful local campaigns can be replicated in other regions if needed.
Setting the correct location targeting in Google Ads is not just a technical detail—it is a strategic decision that can make or break your campaign. By aligning your targeting with your ad offering and route to market, you ensure that your budget is spent efficiently and your ads reach the people most likely to convert.
The example of selling a small strip of land in the West Midlands illustrates the importance of localised targeting. A nationwide campaign would waste clicks and drain budget, while a 50-mile radius ensures relevance and efficiency.
Whether you are selling property, running a local business, or offering nationwide delivery, the principle remains the same: match your location targeting to your market. By doing so, you maximise relevance, minimise waste, and achieve better results.
Speak to me about running your next Google paid ads campaign.
