It is actually the physical location. It is designed to keep you from wasting your money and help you get targeted visitors.

For instance, I did the Vanilla Visa Gift Card task today. It cannot be used outside of the United States and the District of Columbia... not even on websites for companies located outside... so if I wanted to advertise it on AdWords, I could limit it geographically to only advertise to US browsers.

Only those in the US would see the ad, so someone in Japan wouldn't be clicking the ad and costing me money when they can't get the card I'm offering.

On the other hand, I've advertised specific products before that were available in a number of countries. Being able to advertise to those specific countries means I can compete in locations others are not, which can increase the sales I have to those countries, and give me an additional income stream.

In order to catch the ones who lived in Detroit and those who are searching for a handyman in Detroit... your best bet is to include it in the ad...especially the headline... or possibly better, create a separate campaign or ad group targeting that keyword phrase in broad, phrase and exact format.

Hope that helps!
Source(s):
personal experience

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