One of the best ways to fine tune your AdWords account is to identify what’s working and amplify it (or promote your “unicorns”—in Larry Kim speak). One route to do this is through location-based bid modifiers.
Far too many advertisers set their targeting to reflect the areas where their products are sold and neglect to revisit these settings. The problem is, not all geographic locations yield the same performance. For example, if you sell hunting equipment, there’s a good chance that you’ll see more conversions coming from searchers in rural areas where hunting is a popular sport than those in heavily populated urban centers.
Rather than guesstimating which regions are the most valuable for your business, head to the Dimensions Tab and set your view to Geographic. This will produce a sortable report that breaks down your performance metrics by country, region, metro area, city and “most specific location.” Organize by conversions to understand the regions that are bringing in the most sales for your business.
Once you’ve identified your most valuable locations, revisit your location targeting settings and set a positive bid adjustment for each of these locations. Higher bids will help you to attain better visibility for searchers located in (or searching for products within) your top locations, ushering in even more conversions.