Once you set a campaign to target by geographic location, use the Geographic report to find out how your ads are doing in different locations. This information can help you decide where to focus more of your advertising efforts.
Two columns in this report give you details about the geographic location:
Let’s say you sell products only in Seattle, and you’re using the default targeting option for your campaign (“People in, searching for, or showing interest in your targeted location”). Your Geographic report shows that 100 ad clicks have a “Physical location” location type and 80 ad clicks have a “Location of interest” location type.
Based on this data, you conclude that along with many local searchers (searching their "physical location"), a significant number of people from outside Seattle are searching for a business like yours in Seattle (the "location of interest"). So, you might expand your location targeting to a larger radius, including other cities in the region, to reach out to potentially more interested people.
Along with clicks, you can compare the estimated impressions, impression rate (%), click-through rate (%), conversions, and conversion rate (%) to get a better idea of how your ad is performing in each location.