Regional targetting in Google adwords

I thought I'd give an update on how our recent trial with Google's new regional targetting service. Well, the interface is very nice, allowing you to draw a shape around your companies location in whichever proportions you like to show where you'd like to recieve visitors from and to exclude those from outside of that region.

Now, we only tried it on a small IT support company which recieves ver little rtraffic through adwords anyway as it's been so difficult to filter out those visitors who just want information and support and not the services of an IT company however, we did notice that once we'd put regional targetting on, the visitors from Adwords dropped to nil and pretty much stayed there.

Now the catchment area wasn't huge but it wasn't tiny either so if it's filtered out the visitors from outside the catchment area then we're obviously more than happy for not paying for them clicks however, we would like some visitors from our region.

I'm not too sure how exactly Google determines which areas people are located in as sometimes peoples location can show up from miles away if they are using a remote server so I think that the targetting service may be more useful for businesses targetting business to consumer clients rather then business to business.

The conclusion? Too early to say really, I'll have to try it out on a site with a larger amount of traffic and let you know.