When you’re running a local business in Canada, you don’t want your Google Ads reaching people in the wrong province—or worse, a different country altogether. That’s where geo-targeting comes in. With the right setup, Google Ads can help you reach nearby customers who are most likely to convert.
Whether you own a dental clinic in Ottawa, a landscaping company in Mississauga, or a restaurant in Vancouver, understanding how to use location targeting correctly can mean the difference between wasted ad spend and a steady stream of qualified leads.
Let’s walk through what geo-targeting is, why it matters, and how to use it effectively in your campaigns.
What Is Geo-Targeting in Google Ads?
Geo-targeting—also known as location targeting—is a feature that allows you to show your ads only to people in specific geographic areas. These areas can be as broad as a province or as specific as a postal code.
Google determines a user’s location based on several factors, including:
Their IP address
GPS data (for mobile users)
Search behaviour (e.g., “plumber near me” or “hair salon Toronto”)
By limiting your ad exposure to a targeted region, you avoid wasting money on clicks from people outside your service area. More importantly, you reach people in the right place at the right time.
Why Geo-Targeting Is Essential for Local Businesses
Imagine you’re running ads for a roofing company that only serves Calgary and nearby communities. Without geo-targeting, your ads could be shown to people across Alberta or even outside the province—none of whom are likely to become customers.
Effective geo-targeting allows you to:
Focus your budget on high-intent users in your service area
Improve click-through rates by showing locally relevant ads
Align your message with the needs and expectations of nearby customers
Reduce competition and increase Quality Score
When done right, geo-targeting can significantly improve your return on ad spend by ensuring your ads reach only the people who matter most.
Setting Up Geo-Targeting in Google Ads
Setting up geo-targeting is relatively straightforward, but the options can vary depending on your campaign type. Here’s how to configure it properly in a standard Search campaign.
- Go to your campaign settings
In the Google Ads dashboard, select the campaign you want to edit, then click “Settings.” - Find the “Locations” section
This is where you can choose the geographic areas where your ads should appear. - Choose your targeting method
You can target:- Countries (e.g., Canada)
- Provinces or territories (e.g., Ontario)
- Cities or municipalities (e.g., Halifax, Surrey)
- Postal codes or radius targeting (e.g., 10 km around your storefront)
- Exclude irrelevant areas
You can also exclude locations. For example, if you’re advertising across Ontario but don’t serve northern regions, you can exclude those to tighten your targeting. - Review “Location Options (Advanced)”
This setting controls who sees your ad. You’ll want to select:- “Presence: People in or regularly in your targeted locations”
This avoids showing ads to people who are just interested in your area but not physically present.
- “Presence: People in or regularly in your targeted locations”
Radius Targeting: Getting Even More Precise
For brick-and-mortar businesses or service providers, radius targeting is incredibly effective. This allows you to set a distance (e.g., 5 km or 25 km) around your address and target people within that zone.
For example, if you own a bakery in downtown Toronto and want to attract foot traffic, you could set a radius of 3 km. This focuses your ad spend on people who live or work nearby and are more likely to visit your shop.
Use Local Keywords and Ad Copy to Match Targeted Areas
Location targeting is only part of the equation. If you want to make the most of it, your keywords and ad copy should reflect the areas you’re targeting.
For instance, if you’re advertising to customers in Edmonton, your ad headlines and descriptions should reference that location. Instead of a generic “Affordable Pest Control,” say “Affordable Pest Control in Edmonton” or “Serving Edmonton Homes Since 2009.”
Not only does this boost relevance in the eyes of your potential customers, but it also improves your ad’s Quality Score, which can reduce your cost-per-click.
Track and Optimize by Location
Once your campaign is up and running, don’t forget to analyze performance based on geography. In the “Locations” tab in Google Ads, you can view how different areas are performing in terms of impressions, clicks, and conversions.
This helps you identify high-performing regions where you may want to increase bids, and low-performing areas where it makes sense to reduce or pause targeting.
Common Geo-Targeting Mistakes to Avoid
While geo-targeting is powerful, it’s easy to make mistakes if you’re not careful.
One common error is using the wrong location settings—such as targeting “People interested in” your location rather than “People in” your location. This can lead to irrelevant clicks from outside your service area.
Another mistake is using too broad of a location without layering in negative keywords or audience refinements. If you’re targeting all of Ontario, for example, your ads might show to users hundreds of kilometers away from your business.
Finally, don’t forget to consider language settings—especially in bilingual areas like Montreal. Make sure your ads and keywords are matched to the dominant language spoken in the area you’re targeting.
Final Thoughts
Geo-targeting in Google Ads isn’t just a “nice to have”—it’s essential for any local business looking to get the most out of their advertising budget. By narrowing your focus to the right cities, neighbourhoods, or postal codes, you can increase relevance, improve conversions, and cut down on wasteful spending.
If you’re unsure whether your campaign is making the most of geo-targeting, or you’re ready to take your local advertising to the next level, our team at nuBranch Media is here to help. We’ve helped countless Canadian businesses run smarter, more efficient Google Ads campaigns—and we’d love to do the same for you.