YouTube ads offer businesses a way to reach defined audiences in a video environment. YouTube uses Google data to match the right message to the right audience at the right time. For local advertisers, the right place also matters. YouTube location targeting is pivotal to the success of these campaigns.
In this post, we’ll review the options and provide some scenarios for using location targeting effectively.
The Value of Location Targeting for Local Ads
YouTube has many ways to “build” an audience from its 238 million+ users in the U.S. That’s a large pool of people your advertisers have the potential to reach, and they can see great results from these ads.
Location-specific targeting and its value have much to do with the campaign’s goals. Businesses may want to drive purchases, increase website traffic or enhance brand awareness. Research on YouTube ads found that 87% of consumers took action after seeing one. Additionally, 61% of survey respondents said they are more likely to use the site for product research and discovery.
It’s a hot spot for engagement, and location sometimes plays a big role in the audience targeting. It will almost always be valuable for local advertisers operating in specific markets or states.
With YouTube location targeting, there’s less chance for ad waste. There are some nuances in how the site presents the ads. In some instances, users who have shown interest in a targeted location may also see the ads. This can benefit certain types of advertisers that may want to market to folks researching an area for a visit or relocation.
What Are the Geographic Targeting Options on YouTube?
The options include:
- City
- State
- County
- DMA (designated market area)
- ZIP code
- Address + radius
The target can be broad, which would work for businesses with multiple locations in a state. Those that want to be more granular can target by ZIP code. This may be more effective for businesses looking to target specific neighborhoods that are near their physical store. Other situations for narrower targeting could be companies expanding into a new area and looking to create brand awareness.
Asking questions about geographic targeting will assist you with your recommendations. Some conversation starters on this could include:
- Do you have specific service areas? A pest control company may only work in segments of a city if it’s a large market.
- Are their neighborhoods or communities you’ve identified as being a good source for new customers? They may have some market research that’s driving this decision.
- Is it important to target just the city or the entire county? For example, Mecklenburg County in North Carolina is the most populated in the state. The largest city in the county is Charlotte, but many smaller towns within the county make up the greater Charlotte area.
Advantages of Location Targeting
Whether a few ZIP codes or an entire city, location targeting gives advertisers great control over where ads play.
Localization Within Large Markets Enables Personalization
Large urban areas often have defined neighborhoods with their own culture or personality. Using that as part of the ad creative could generate more interest. Consumers may feel that the ad is talking to them on a personal level.
Companies could have several campaigns running in these designated areas. It could be the same area, just incredibly localized.
Waste Prevention
Another advantage is preventing wasted impressions that reach people outside the company’s typical radius or service area.
For example, internet providers don’t always have the same services for people within the same city. In this case, they’d want to advertise more on the ZIP code level. As a consumer, it would be very frustrating to see an ad, inquire about it, and find the service unavailable.
Targeting for Travel, Tourism and Hospitality
YouTube location targeting also helps businesses looking to attract people to their city. Anyone involved in travel, tourism or hospitality can use this to reach vacationers. Their internal data may reveal that they welcome people from specific areas routinely.
For example, people regularly come from northern Arizona to Las Vegas. Those living in western North Carolina often vacation at South Carolina beaches. If your advertisers know these spots, they can target those folks with deals and offers.
Location and Other Targeting Deliver a Curated Audience
When location targeting combines with other areas like demographics, interests, life events or topics, you can really refine the audience. You don’t want to make it too narrow, but curating a company’s ideal audience can lead to better performance.
Make sure customers are aware of the many types of geographic targeting and why they may choose cities over counties. Putting it all together in a proposal ensures they know the audience they will most likely reach and, ideally, convert.
Get more insights in our post on YouTube video advertising tips for local businesses.

