Ad performance tends to vary for different geographic areas (even within the same country).

AdWords provides geographic performance reports by country, state and city (for some countries like the US even postal code). You can use this information to increase or decrease your cost per click bids for specific regions (or you can exclude regions altogether).

Step 1: Analyzing Geographic Performance

Click on a campaign -> Settings -> Locations

Click on “View location reports” -> What triggered your ad (geographic)

– In order to see the performance at the city level, click the “View: Country” (dropdown) and select “City”

Below is an example of an analysis for a German campaign at the city level. The analysis shows that some cities generate a much lower cost per acquisition than others (for example Hamburg €14.17).

Step 2: Optimizing Geographic Performance

In order to stop running your ads for a specific city, tick the box next to it and click “Edit” (dropdown), then select “Exclude”.

To increase or decrease the bids for a specific city, tick the box next to it and click “Edit” and select “Add targets and set bid adjustment”.

After selecting “Add targets and set bid adjustment” you can increase or decrease your bid for the selected city. Once you are done click “Add” to apply the changes. In this example all campaign bids for Hamburg would be increased by 10%.