Why is Google AdWords Location Based?

April 11, 2025 - by Lior Krolewicz, Founder and CEO,Yael Consulting

Why Is Google Ads Location-Based? (And Why It Works) 

Here’s today’s question: 
Why is Google Ads (AdWords) location-based—or even mostly location-based? 

To understand this, we need to take a step back and look at how Google Ads functions in the real world. 

Think of Google Ads Like a Modern-Day Newspaper 

Back in the day, you’d place ads in a newspaper to reach people in a specific location
If you ran a local plumbing service in New York, you wouldn’t advertise in a national magazine—you’d pick a local paper

Google Ads is the digital version of that. 

When you search on Google, it’s like looking through a giant, dynamic newspaper—but with targeted ad space that’s tied to where you are or where you’re looking to go. 

Google Knows Where the Searcher Is 

Let’s say someone searches “New York plumber” and they’re physically located in Manhattan

Google knows their location through their IP address or device signals. 

Meanwhile, a business can go into Google Ads and say: 

“I only want my ad to show in Manhattan.” 

Now it’s a match: 

  • ✅ The searcher is in Manhattan 
  • ✅ The advertiser is targeting Manhattan 
  • ✅ The ad shows up for that person 

That’s a highly relevant connection—because the searcher gets a local solution, and the advertiser reaches someone nearby. 

Google Ads Is Also Intention-Based 

Location isn’t the only factor. Intent matters too

If someone is sitting in Mobile, Alabama, and searches for “Los Angeles plumber”, Google knows they’re probably: 

  • Researching for someone in LA 
  • Moving there 
  • Helping a friend 
  • Or planning something that requires LA services 

In that case, Google may show them Los Angeles-based ads—because the search intent overrides the current location. 

Same goes for “bakery in Miami” or “Chicago dog walker.” The query includes location, and Google adapts. 

Final Thoughts 

So, why is Google Ads location-based? 

Because: 

  • Like traditional ads, location is critical for relevance 
  • Google matches searcher location with advertiser targeting 
  • But it also considers intent, so users still see relevant ads even if they’re not physically there 

This dual system—location + intent—is what makes Google Ads one of the most powerful targeting platforms in the world. 


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