What your yellow pages seems to have done is this:
They create an AdWords campaign targeted at a certain geographical area(such as Montreal) and then place the keyword 'Montreal' in the title of their text ads for that campaign.
This takes a lot of work for someone who wants to advertise in many places, but I assume that your local yellow pages is only running AdWords ads targeted at their local area to avoid poaching other yellow pages customers.
See the example below and all will be clear to you:
[adwords.google.com...]
In your particular example, it is a combination between dynamic and static words in the title of an ad.
In such cases you only have to be careful with actual keywords.
Keep in mind that it will always be your keyword, not the actual search term that will show up as inserted term.
Also always remember the limited number of characters in both title and ad text.
I think that in his example it is not a case of dynamic keyword insertion, as he is seeing the geographical location name appear in the ad when the geo-name is not one of the keywords searched for.
If he had searched for 'painters in montreal' then I would attribute it to DKI.
I just used Ad Preview Tool and saw no YP ads anywhere in Quebec.
But I could see them in ON or BC for example.
They still target provinces only on the campaign level. That can be seen whenever an ad shows on a side, because it states the province in the fifth row.
How they insert city into title could only be based on local business ads, I would think. I see they always have a local company name in display URL.
Ads do not show in all cities, but seems only if the actual shop is located in the searcher's IP area.
So what you are telling me is they create multiple geo-targeted campain for every city! Wow it's a full time job!
