Getting your location targeting right is the most important step for a local business ad.
The Best Method: Yes, the ‘drop pin’ feature is the most precise tool for this. You should place a pin on your shop’s address and then adjust the radius to its smallest size, like one or two kilometres.
This level of precise targeting ensures your ad’s image and text content is only shown to the most relevant local audience.
In the Ads Manager, go to the audience section and find the locations map. Instead of typing in a city, you can click to drop a pin directly onto your business address or the centre of the CBD. A slider will then appear that lets you shrink the targeting radius right down, which is exactly what you need to do to avoid budget wastage. It is also critical to choose the right audience type within that radius; you can select to target ‘people living in this location’ for residents or ‘people recently in this location’ to reach the office worker crowd in an area like the CBD. This pin-drop method is far more accurate for a custom zone than targeting by a broad city name.
Cheers,
Jeff