Does adwords geolocation ad display work?

[newbie]

I set up a Google Adwords account last week.
Under the Google's login panel under GEO location options; I selected to only display ads in my local region as our business only services locally.

Friends are now telling me they are seeing my ads in Perth, Sydney, Brisbane and all over the place. I have contacted Google about this bug a few days ago but have had no response.

Anyone experienced this problem?
or am i doing something wrong?

[FIGJAM]

I have never had this problem in the US. maybe some issue with Google Australia.

[seoWiz]

One thing to keep in mind is that Google tries to classify different region by a internet users IP address.

Many PPC Advertising services Like Google Adwords provide you with the ability to display your ads to certain countries and even regions. Although Google allows you to display your ads in different countries quite accurately, the region targeting is useless in Australia.

It’s because Telstra delegates each internet service provider (ISP) with blocks of unique IP address ranges which are used to provide to there own internet users (your visitors). These blocks are in no way fixed to a region.

Big ISP’s like iiNet and Telstra Bigpond who provide internet all over Australia do not hand IP ranges out to different region’s, they just give you any wide area network IP for your internet connection. So in Australia everyone’s IP’s are all over the place.

[newbie]

Not sure if I am missing something here but what is the point of offering region targeting in Australia then?

[oneseer]

Regional targeting can be divided into two – IP targeting and geographic location targeting. IP targeting means that the ads distributed to the searcher are according to searcher location. Those ads which are most relevant to the searcher according to location will be shown to him and others will be shut out. Geographic targeting means using geographic keyword modifiers in searches for instance, when you search for ‘Miami personal trainer’ ads from Miami will be shown to you. There will be no reason to show you ads from anywhere else. It corresponds to a specific location. It is important to begin planning tactics around your regionally targeted campaigns. When constructing an IP address targeted campaign, make sure to use general keywords as well as geographically specific keywords. Running only an IP targeted campaign will limit the number of searchers who find your site since only IP addresses belonging to your region can access the site. Outside users who may want to avail of your services will be shut down. The way to counter this is to use a “companion campaign” which will release your ads to a nationwide audience by implementing geographic modifiers. This gives Ad Words the option to display the better performing ad and get you better coverage.

I hope it helps.