Location targeting: presence versus intent
Geographic targeting settings dictate whether ads serve to people physically present in your territory or users merely researching your area from afar.
Presence versus interest: the critical distinction#
By default, Microsoft Advertising targets 'People in, searching for, or viewing pages about your targeted location'. This setting broadens reach by including users outside your target market who search for keywords containing your city name.
For regional service providers, legal practices, and brick-and-mortar businesses, this default causes significant waste. Selecting 'People in your targeted location' restricts delivery strictly to users with verified physical IP or device location as detailed in Microsoft Geographic Targeting Docs, 2026.
Radius targeting, postcodes, and postal districts#
Microsoft Advertising supports granular geographic boundaries, including countries, regions, cities, designated market areas (DMAs), specific postal codes, and custom radius circles (e.g., 10 miles around a storefront) as outlined in Microsoft Location Criterion API, 2026.
Local businesses should apply radius targeting around physical store locations with tiered bid adjustments (+25% within 3 miles).
Negative location exclusions and boundary gating#
Negative location exclusions create hard boundaries, preventing ads from serving in excluded regions even if user queries mention targeted service terms. Always explicitly exclude non-operational countries at the account level.
Layering geographic bid adjustments (-90% to +900%)#
Evaluate conversion rates by location in Geographic Performance reports and apply custom bid modifiers to allocate more budget to top-performing postal codes and municipal areas.
Consult our Microsoft Ads Hub for location auditing tools.
Location configuration decision checklist#
The checklist below guides location targeting configuration based on business operational model.
| Business Operational Model | Recommended Location Setting | Strategic Reason |
|---|---|---|
| Local Trade / Emergency Service | People in your targeted location | Eliminates calls from customers outside travel radius |
| Hotel / Tourism Destination | People searching for your location | Captures incoming travellers planning visits |
| B2B National Enterprise | People in your targeted location (Country) | Restricts leads to domestic commercial markets |
| E-Commerce (Domestic Shipping) | People in your targeted location (Nationwide) | Prevents orders with unfulfillable international shipping |
Frequently asked questions#
Why am I getting clicks from outside my targeted location on Microsoft Ads?
This occurs when your location setting is left on the default 'People in, searching for, or viewing pages about your targeted location'. Switch to 'People in your targeted location' to fix it.
Can I target specific postal codes on Bing Ads?
Yes, Microsoft Advertising supports granular postal code and postal district targeting in major markets including the UK, US, Canada, and Australia.
Do negative location exclusions override positive location targets?
Yes, negative location exclusions always take precedence over positive location targets if there is an overlapping geographic area.
What is the maximum radius I can set around a business location?
You can set custom radius circles from 1 to 500 miles (or kilometers) around any address, city, or coordinate point.
How do I see performance by city or state in Microsoft Ads reports?
Run a Geographic Report under the Reports tab, segmenting metrics by Location Type, City, State/Province, and Postal Code.
Read more on this topic#
The Microsoft Ads Hub
Free tools, campaign guides and live news for every Microsoft Ads format.
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