Location Targeting is a setting that can be enabled in Google Ads that allows you to select specific geographic locations in which to show your Text Ads. This is done at the campaign level and can include places of interest, your business’s location or areas within a place that hold potential to find new customers.
There are four options available to choose from:
Entire countries
Areas within a country (such as cities or territories)
A radius of a specific diameter around a particular location
And location groups
Location Targeting is used both to target specific locations and also to exclude geographic areas that may not be practical for your business to advertise in. It’s also especially useful in instances where you would like to reach your customers when they are near to a certain location and searching online for a specific product or service.
For example, a physical store that chooses to advertise in the same city as it is located—in order to bring local customers in that are searching for the products or services that the store offers.
Another good example is a goods delivery company that only operates within a certain radius around their main delivery office. They can choose to use the radius location setting to target Text Ads to people surrounding them in the same radius as they deliver, in order to reach the people that are searching within a practical distance for a goods delivery service.
Source: Location Targeting