Just an FYI (the above suggestion is great).
In the above example, if the keyword 'widget' is geotargeted to Chicago, and someone from Florida searches for 'Chicago Widget' then it is possible the geotargeted ad is triggered.
One of the real advantages of this type of targeting is to use geospecific keywords in an ad for a nongeographic specific search. Someone in Chicago searching for 'widgets' and seeing an ad title of 'Chicago Widgets' is much more likely to click on an ad than seeing the title 'Discount Widgets for Sale' because of the relevancy factor.
Obviously, there are some industries where geoqualified words don't make a difference, however, in those where it does - they can make a huge difference.