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Can some one provide a better explanation for this?
[edited by: SEMblahblah at 11:30 am (utc) on June 5, 2008]
Targeting just new york you'll get lots of visitors from new york.
But say someone in Texas (A bit far away, I know) wanted some web design doing, but they knew they wanted to get services within new york.
They would type - "web design services new york"
And thus our advert would appear because there's a good chance he'll buy from us.
This is the reasoning google uses.
Secondly and more importantly, query parsing can occur only in case of a search campaign. But as I now notice, my ads are being shown in locations (other than targeted) in case of my content campaign.
How could this possibly happen?
I guess this parsing only works where the "x" is a city name or state name, and does not work with state abbreviations. If you want to stop this from happening you could make every major city and the state name a negative keyword & then see how this works in other states by using the ad preview tool [adwords.google.com...]
Then you could test and see if it is more profitable to attempt to ban this outside traffic, though it will probably also limit your in-state exposure as well. Just a though.