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Adwords for Local Business Questions - maximizing coverage

Local Business Ads vs. Text ads

7:35 pm on Apr 3, 2008 (gmt 0)

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I am interested to see people's take (and Google's rationale as well) on how best to position a small local business on Adwords to harness only local clicks and show ads for all possible relevant local search volume.

In your experience, have you found a combination of Local Business Ads and regular Text Ads with Geographic Targeting gets you more coverage? Is it better somehow to do one or the other? What is the prevailing philosophy here?

Do you only see Local ads if the search term contains a mappable location (or if you search within Maps)?

I guess what I'm looking for is this: what is your take on the best way to maximize ad coverage for these advertisers if location is almost entirely a part of the search term? Bear in mind the budget is LOW.