UK PPC Strategy: Why Location Targeting Is the Key to Google Ads Success

In Hong Kong, advertisers rarely need to think about geographic targeting — the city is dense, compact, and easy to cover with a single campaign. But in the UK, location targeting can make or break your Google Ads performance. Failing to define your target area means wasted ad spend on irrelevant clicks, poor lead quality, and higher CPCs.

In this article, we’ll explain why location targeting is so critical in the UK, how to set it up properly, and the different strategies for local vs nationwide businesses.

1. Why Location Targeting Matters So Much in the UK

Uneven Population and Economic Distribution

Unlike Hong Kong, the UK is a large, decentralised market. England, Scotland, Wales, and Northern Ireland each have very different population densities, local cultures, and purchasing behaviours.

For example:

• The average CPC in London is 30–50% higher than in the North of England — but conversion rates are stronger.

• Cities like Liverpool, Sheffield and Cardiff offer cheaper clicks but less predictable ROI.

If your business is based in Northamptonshire or Bicester, but your campaign targets “United Kingdom, ”you’re paying for clicks from places like Scotland or Cornwall where no one will ever become your customer.

User Behaviour Differs by Region

In Hong Kong, someone searching “decking,” “restaurant,” or “PPF” will usually get results within 5 km of their home.In the UK, users often search by region or city — they expect local results.

Typical UK queries look like:

“composite decking Northamptonshire”, “paint protection film Bicester”, “Italian restaurant Glasgow”

If your Google Ads campaigns don’t reflect these geographic patterns, you’ll miss the most conversion-ready searches.

2. How Location Targeting Works in Google Ads (UK Setup Guide)

A. Target by Region, City or Postcode

At the campaign level, you can choose to target:

• Counties or Cities (e.g. Manchester, Kent, Northamptonshire)

• Postcodes (e.g. NN14 2SR, OX26)

• Radius Targeting (e.g. “within 25 miles of your business address”)

Examples:

• Vigo Home targets “within 80 miles of NN14 2SR”

• PPF Guy targets “within 50 miles of Bicester”

• Restaurants like Trevi Italian Glasgow target “within 5 miles of G42 9JU”

This setup ensures you reach realistic customers based on how far they are willing to travel for your product or service.

B. Presence vs Interest — the Most Misunderstood Setting

Google Ads lets you choose between:

• Presence – Show ads only to people physically located in your target area. Ideal for local services like garages, restaurants, decking installers, clinics.

• Presence or Interest – Show ads to people either in the area or interested in it. For example, someone in London searching “decking company in Northampton” can still see ads for that region. Perfect for nationwide or B2B businesses.

Our recommendation:

• Local business → use Presence only

• Nationwide brand → use Presence or Interest

C. Bid Adjustments by Location

CPC and conversion rates vary greatly across the UK:

• London → ~40% higher CPCs but high buyer intent

• Manchester / Birmingham → medium CPC, balanced ROI

• Leeds, Sheffield → lower CPC, steady volume

Use Location Bid Adjustments to improve efficiency:

• +20% for high-performing cities

• −30% for low ROI areas

This strategy significantly boosts ROAS ( Return on Ad Spend ).

3. How to Use Location Targeting to Improve ROI in the UK

Check User Location Reports In Google Ads → Reports → User Location.Compare “Actual Location” vs “Location of Interest” to see which regions generate the most conversions.

Create Separate Campaigns per Region, e.g.

• Composite Decking London

• Composite Decking Northamptonshire

• Composite Decking Manchester

Each can share similar ad copy but have customised landing pages with localised images and CTAs.

Use Dynamic Keyword Insertion with Local Terms. For example, in your ad headline:

“{{KeyWord:Composite Decking}} near you” will automatically display the searched city (e.g. “Decking in Kettering”).

Optimise Your Google Business Profile (GBP) Make sure your GBP address and categories are accurate so your ads show up in local map results with directions, hours, and click-to-call.

4. Cultural Difference: UK vs Hong Kong

In Hong Kong, a single “Hong Kong wide” campaign can cover the entire market. In the UK, location itself is part of consumer language and trust. UK consumers regularly add “near me” or city names to their queries. They care about distance, availability, accents, and local credibility. So for UK advertisers, location targeting is not just a setting — it’s a marketing message.

5. How 1 Click Magic Helps You Master UK Location Targeting

At 1 Click Magic, we help brands move from generic nationwide targeting to precise regional structures that actually convert. Our team builds data-driven Google Ads frameworks based on your service radius, target cities and conversion patterns.

We provide:

• Geo-Level Performance Analysis – identify where your budget is working and where it’s wasted

• Regional Campaign Architecture – dedicated campaigns and landing pages for each key city or postcode

• Smart Bid Adjustments – automated CPC optimisation by region

• Geo Performance Dashboards – visual CPA, CTR and ROAS data for each location

Whether you’re a restaurant, a decking installer, a garage or a national e-commerce brand, location targeting will decide your ROI in the UK market.

Get in touch with 1 Click Magic today to build a UK-ready Google Ads structure that targets the right customers in the right places — and maximises every pound of your budget.