How to Use Radius Targeting in Google Ads for a Local Service Area in 2026

By Rafirit Station Editorial Team · Updated 2026 · ⏱ 18 min read

Radius targeting in Google Ads is one of the most cost-effective ways to reach customers near your business. According to Google, 76% of people who search for something nearby visit a related business within 24 hours (Source). But most local service ads waste 30% of their budget on irrelevant clicks because of poor geo-targeting.

In 2026, as competition for local keywords like ‘electrician in Dhaka’ intensifies, radius targeting is no longer optional—it’s a necessity. Algorithms now prioritize relevance and location proximity, meaning a poorly targeted campaign will struggle to show at all.

The cost of inaction? If you’re a plumbing business in Dhaka spending ৳50,000/month on Google Ads without proper radius targeting, you could be losing ৳15,000+ to clicks from outside your service zone. That’s ৳180,000 wasted annually.

By the end of this guide, you’ll know exactly how to set up, optimize, and scale radius-targeted Google Ads campaigns that drive real leads for your local service area.

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📚 External Resources (Bookmark These)

• Google Ads Help: Location & Radius Targeting
• Ahrefs Blog: Google Ads Location Targeting Guide
• Backlinko: Local Business SEO & Ads Tips
• Moz: Local Search Ads Best Practices
• Semrush: Local PPC Tactics
• Shopify Blog: Local Marketing Strategies
• Neil Patel: Advanced Location Targeting
• WordStream: Location Targeting Optimization
• Search Engine Journal: 7 Tips for Location Targeting
• PPC Hero: Local Ad Copywriting Tips

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🔗 Rafirit Station Services

• Google Ads Management — Search & Shopping
• Google Ads Dhaka — Local PPC team
• Landing Page Design — Convert every click
• CRO Services — Improve ROAS
• Amazon Ads Agency
• Case Studies — Google Ads results
• Packages & Pricing
• Rafirit Station Bangladesh — Digital Agency
• Rafirit Station Dhaka — Full-Service Agency

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Phase 1: Understanding Radius Targeting Basics

Before diving into setup, you need to understand how Google Ads interprets location. There are two settings: ‘presence or interest’ (targets people in or looking at your area) and ‘presence’ (only people physically present). For local service businesses, always choose ‘presence’ to avoid clicks from outside your actual service zone.

Tactic 1.1: Choose the Right Radius Size

Why this works: A radius too large includes uninterested users; too small misses potential customers. The sweet spot aligns with your typical travel distance.

Exactly how to do it:

1. List your top 10 service cities or neighborhoods in Dhaka (e.g., Gulshan, Banani, Dhanmondi, Uttara, Mirpur, etc.).
2. Calculate average distance from your base: if you’re in Gulshan, most calls are within 10-15 km.
3. Set initial radius to 10 km and run for 2 weeks.
4. Review location reports: which distances generate leads? Adjust accordingly.
5. Create separate ad groups for inner (5 km) and outer (10-15 km) radii with different bids.
6. Use bid adjustments: +20% for inner, -10% for outer.
7. Exclude areas you don’t serve (e.g., outside Dhaka district).

Pro script / template: “Start with 10 km radius for a city-wide service business. For niche services like ’emergency locksmith’, use 5 km for faster response.”

📊 Expected results: 25% reduction in wasted clicks within 2 weeks, 15% higher conversion rate from inner radius.

Tactic 1.2: Layer Location Groups

Why this works: Combining radius targeting with location groups (cities, zip codes) gives precise control. You can target all of Dhaka but prioritize a 5 km ring around your office.

Exactly how to do it:

1. In campaign settings, add ‘Dhaka’ as a location group (country: Bangladesh, city: Dhaka).
2. Then add a radius location (e.g., your office) set to 5 km.
3. Choose ‘target people in my target location’ to intersect both.
4. Set bid adjustment for the radius to +50%.
5. Monitor overlap: if too narrow, increase radius to 10 km.
6. Use negative locations to exclude specific areas (e.g., industrial zones).
7. Test ‘presence only’ vs ‘presence or interest’ and switch to presence if budget is limited.

Pro script / template: “I tell clients: target your city plus a radius. For Dhaka, target ‘Bangladesh > Dhaka’ and add a 15 km radius around your Gulshan office with +30% bid.”

📊 Expected results: 18% increase in click-through rate from nearby users, 12% lower cost per conversion.

Tactic 1.3: Exclude Irrelevant Locations

Why this works: Without exclusions, your ads may show in areas you don’t serve, like neighboring cities or rural villages. This wastes budget on unqualified clicks.

Exactly how to do it:

1. Export your location report from Google Ads to see where clicks originate.
2. Identify non-service areas (e.g., airports, industrial zones, other cities).
3. Add these as excluded locations at the campaign level.
4. Use radius exclusion if needed: exclude a 2 km ring around competitors? (Careful: can be anti-competitive, but fine to exclude non-service zones).
5. Set up a ‘test’ campaign with wide targeting for 1 week to find bad locations, then exclude.
6. Monitor weekly and update exclusions.
7. For Dhaka businesses, exclude areas like Narayanganj or Gazipur if you don’t serve there.

Pro script / template: “Check your search terms report: if someone in Narayanganj clicks your ad for ‘electrician Dhaka’ but you don’t go there, add Narayanganj as negative location.”

📊 Expected results: 30% increase in conversion rate, 20% lower cost per lead.

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Phase 2: Bid Adjustments & Campaign Settings

Once your base targeting is set, you need to optimize bids by distance. Not all locations are equal: a customer 2 km away is more valuable than one 12 km away (higher likelihood to convert, lower travel cost).

Tactic 2.1: Create Distance-Based Bid Adjustments

Why this works: Google Ads allows location bid adjustments up to +900% or -90%. By increasing bids for close radii, you win top positions for high-intent searchers.

Exactly how to do it:

1. Add multiple radius locations from your business point: 1 km, 2 km, 5 km, 10 km, 15 km.
2. Set bid adjustment: +50% for 1 km, +30% for 2 km, +10% for 5 km, 0% for 10 km, -20% for 15 km.
3. Ensure no overlap issues: Google uses the most specific radius, so overlapping is fine but adjust sequentially.
4. Use ‘location report’ to see performance per radius and fine-tune.
5. Consider time of day: if you serve emergency services, bid higher for late hours.
6. A/B test: one campaign with flat bids, one with adjustments.
7. Track leads by distance using call tracking or custom landing pages.

Pro script / template: “Set radius bid adjustments like this: 1-3 km: +40%, 3-5 km: +20%, 5-10 km: 0%, 10-15 km: -30%.”

📊 Expected results: 25% higher conversion rate from inner zones, 18% lower CPA overall.

Tactic 2.2: Use Location Extensions & Ad Customizers

Why this works: Location extensions show your address and phone number, increasing trust. Ad customizers can insert the user’s location into headlines, like “Plumber in Gulshan.”

Exactly how to do it:

1. Link your Google My Business account to Google Ads.
2. Enable location extensions at the campaign level.
3. Create ad customizers: data feed with city names mapped to keywords (e.g., ‘Dhaka’, ‘Gulshan’, ‘Banani’).
4. Write ad headlines: {=CityName} Electrician – Fast Service.
5. Test with and without customizers to measure CTR uplift.
6. Use call extensions for mobile users who want to call directly.
7. Track phone calls as conversions.

Pro script / template: “Ad: ‘Need an Electrician in Dhaka? Call Now – 24/7 Service in Gulshan & Banani’. Use ad customizer: ‘Need an Electrician in {=Customizer.City}?'”

📊 Expected results: 20% higher CTR, 15% more phone calls, 10% higher conversion.

Tactic 2.3: Optimize for ‘Near Me’ Searches

Why this works: ‘Near me’ searches have high intent, and Google prioritizes ads with location extensions. Over 60% of ‘near me’ clicks go to the first two ad positions.

Exactly how to do it:

1. Add exact match keywords like ‘plumber near me’, ‘electrician near me’, ‘hvac service near me’.
2. Use phrase match for ‘near me plumbing’, etc.
3. Set high bids for these keywords (e.g., +40% bid adjustment).
4. Ensure your Google My Business listing is verified and optimized (response rate, reviews).
5. Create a separate campaign for ‘near me’ keywords to control budget.
6. Use call only ads for ‘near me’ searches (mobile only).
7. Monitor impression share; if low, increase bids or add more keywords.

Pro script / template: “Start with ‘near me’ keywords: ‘best plumber near me’, ’emergency electrician near me’. Bid 30% higher than your standard keywords.”

📊 Expected results: 35% higher CTR on ‘near me’ keywords, 28% lower CPA.

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Phase 3: Advanced Radius Targeting Techniques

Once you master the basics, you can layer in advanced strategies like targeting competitor locations or using location-based schedule adjustments. These tactics require granular tracking but can significantly boost ROI.

Tactic 3.1: Target Competitor Locations (With Caution)

Why this works: If you are a plumber, you can target the vicinity of a competitor’s business to intercept potential customers. This is ethically debated but legal—focus on providing better value.

Exactly how to do it:

1. List top 5 competitors in your area (e.g., other electricians in Gulshan).
2. Use geo-coordinates of their offices (publicly available from Google Maps).
3. Add radius targeting of 1-2 km around each competitor’s location.
4. Create a separate ad group with ad copy highlighting your unique advantages (e.g., ‘Faster response’, ‘5-star rating’).
5. Use negative keywords to avoid irrelevant terms (e.g., competitor names if trademarked).
6. Monitor brand terms: if competitor bids on your brand, you can do the same legally in Bangladesh? But generally avoid bidding on trademarked names.
7. Track conversions from these zones; they may have lower conversion rates.

Pro script / template: “Ad: ‘Need an Electrician? We’re Right in Gulshan – Available 24/7. Compare our reviews to others!”

📊 Expected results: 10-15% increase in leads from competitor-dense areas, but CPA may be 20% higher due to lower intent.

Tactic 3.2: Use Location-Based Schedule Adjustments

Why this works: For emergency services (plumber, electrical), intent peaks evenings and weekends. For office services (IT support), weekdays 9-5. Adjust bids by time of day per location.

Exactly how to do it:

1. Analyze your conversion data by hour and day.
2. Determine high-intent times: for emergencies, 5 PM–10 PM might be peak.
3. Create a bid schedule: +30% during high-intent hours.
4. Keep this adjustment separate from location bid adjustments—they stack.
5. Use ad schedule in Google Ads: Monday-Sunday, 6AM-12AM (adjust).
6. Test different schedules by location (e.g., weekday vs weekend).
7. Monitor impression share to ensure your ad shows during peak times.

Pro script / template: “For a Dhaka electrician: increase bids by 30% on Friday and Saturday evenings (6-10 PM) to capture home repair demand.”

📊 Expected results: 22% higher conversion rate during adjusted hours, 15% lower CPA overall.

Tactic 3.3: Retarget Users by Location Distance

Why this works: Users who visited your site from a close radius (e.g., within 5 km) are highly likely to convert. Retarget them with special offers.

Exactly how to do it:

1. Set up a remarketing tag on your site.
2. Create a custom audience based on location: use Google Analytics to segment users by location distance from your address.
3. Define audience ‘Users who visited site and were within 5 km of our office’.
4. Create a remarketing campaign with tailored ads: ‘Plumber in Gulshan – Book Now – 10% Off for Neighbors’.
5. Set frequency cap: 3 ads per week to avoid annoyance.
6. Separate bid for remarketing: typically lower CPA.
7. Exclude converters to avoid over-serving.

Pro script / template: “Use Google Ads custom combination audience: ‘Site visitors’ AND ‘Location: within 5 km of Gulshan’ – then bid +100%.”

📊 Expected results: 30% higher conversion rate from retargeted users, 25% lower CPA.

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Phase 4: Measuring Results and Scaling Your Campaign

Without proper measurement, you’re flying blind. Use Google Ads location reports, call tracking, and UTM parameters to understand which radii perform best, then scale budget accordingly.

Tactic 4.1: Set Up Conversion Tracking by Location

Why this works: Not all conversions are equal. A lead from 2 km away may have a 50% close rate vs 20% from 15 km. Track both call and form submissions with location context.

Exactly how to do it:

1. Implement Google Ads conversion tracking for phone calls (call extensions) and form submissions.
2. Use dynamic number insertion (DNI) for calls, or separate numbers per location page.
3. Create custom conversion actions: ‘Phone call lead’ and ‘Form lead’.
4. Import offline conversions if you track sales CRM data.
5. Segment location report by ‘distance’ (if available) or by ad group targeting different radii.
6. Calculate cost per qualified lead (CPQL) for each radius.
7. Shift budget to the radius with lowest CPQL.

Pro script / template: “Set up a Google Ads conversion rule: ‘Phone calls > 60 seconds’ as a conversion. Then in location report, sort by calls and find your best radius.”

📊 Expected results: 20% reduction in wasted budget, 15% higher overall ROI.

Tactic 4.2: A/B Test Radii in Separate Campaigns

Why this works: Running two campaigns with different radius sizes allows you to statistically compare performance. You can then settle on the most profitable radius.

Exactly how to do it:

1. Dupe your best-performing campaign.
2. In Campaign A, keep 10 km radius. In Campaign B, change to 15 km.
3. Set same budget, same ad copy, same keywords.
4. Run for 4 weeks (minimum) to gather sufficient data.
5. Compare CPA, conversion rate, and lead quality (via call scripts or form fields).
6. Pick winner; consider multivariate test for bid adjustments as well.
7. Scale winner’s budget by 30% per week.

Pro script / template: “Test 10 km vs 15 km for your electrician campaign. Use exact same settings, then after 30 days, compare cost per booking. Stick with the winner.”

📊 Expected results: 10-15% lower CPA after scaling, identification of optimal radius.

Tactic 4.3: Scale with Lookalike Audiences (Advanced)

Why this works: Google Ads allows you to create similar audiences based on location data. If you have a list of past customers with their addresses, you can target lookalikes in nearby areas.

Exactly how to do it:

1. Create a list of past clients from your CRM, including location (city area).
2. Upload list to Google Ads as a customer match audience (with permission).
3. Create a lookalike audience targeting ‘Similar to customers in Dhaka/Gulshan’.
4. Use radius targeting combined with lookalike for precision.
5. Set bid adjustment +20% for lookalike audience.
6. Monitor performance: lookalikes may have lower conversion rates but higher volume.
7. Segment reports by audience to measure incremental lift.

Pro script / template: “Upload CSV of past customer zip codes or neighborhoods, then create lookalike audience ‘Similar to past customers’ and target with a 10 km radius.”

📊 Expected results: 20% more leads from similar customer profiles, 15% higher conversion rate than cold targeting.

Tactic 4.4: Scale to New Geographic Locations

Why this works: Once your radius targeting is profitable in one city (e.g., Dhaka), replicate the structure in nearby cities like Narayanganj, Gazipur, or Chattogram. Use local ad copy and separate campaigns.

Exactly how to do it:

1. Identify second city: e.g., Chittagong for expansion.
2. Copy your Dhaka campaign structure as template.
3. Adjust radius targeting: start with 10 km around city center.
4. Localize ad copy: mention city name, landmarks.
5. Set lower budget initially (20% of Dhaka’s budget) to test.
6. Monitor for 2 weeks; if CPA is within 20% of Dhaka’s, scale.
7. Repeat for each new city, iterating on best practices.

Pro script / template: “To expand to Chittagong: copy campaign, change location to ‘Bangladesh > Chittagong’, add a 12 km radius around GEC circle, and rewrite ads with ‘Chittagong’.”

📊 Expected results: 40% increase in total leads within 3 months, 15% lower CPA as you learn from each city.

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🏆 Real Case Study: How a Dhaka Electrician Used Radius Targeting to Increase Leads by 200%

Before: A local electrician in Dhaka (serving Gulshan, Banani, and Uttara) was spending ৳60,000/month on Google Ads without radius targeting. His ads were showing across all Dhaka, including areas he didn’t serve (e.g., Narayanganj). His CPA was ৳1,200 per lead, with about 50 leads per month, but only 20 were qualified (in his service area).

Strategy: Our team at Rafirit Station implemented the following:

• Set radius targeting to 12 km from his Gulshan office
• Added radius bid adjustments: +40% for 0-3 km, +20% for 3-6 km, 0% for 6-9 km, -30% for 9-12 km
• Excluded areas outside his service (Narayanganj, Savar, etc.)
• Created separate ad groups for each major neighborhood (Gulshan, Banani, Uttara) with local ad copy
• Added call extensions and tracked phone calls >60 seconds as conversions
• Used ad schedule: increased bids 30% on Fridays and weekends (peak demand)

Results after 90 days:

• Monthly leads increased from 50 to 120 (140% increase)
• Qualified leads (within service area) went from 20 to 95 (375% increase)
• CPA dropped from ৳1,200 to ৳500 (58% reduction)
• Monthly revenue from ads went from ৳1,50,000 to ৳4,80,000 (320% increase)
• Cost per qualified lead fell to ৳320

Client quote: “I didn’t realize how much budget I was wasting on clicks outside my area. After Rafirit Station optimized our radius targeting, my phone hasn’t stopped ringing. Best decision I made.” – Ahsan, Owner of TopFix Electric Dhaka

See more Rafirit Station case studies →

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✅ Radius Targeting Optimization Checklist

Step	Status
Set up radius targeting (10 km initial)	✅
Choose ‘presence’ targeting	✅
Add location extensions	✅
Exclude irrelevant areas	❌
Set distance-based bid adjustments	✅
Create separate ad groups per neighborhood	⚠️
Use ad customizers for location text	✅
Add ‘near me’ keywords	✅
Track phone calls as conversions	❌
Set up ad schedule adjustments	⚠️
A/B test different radii	✅
Review location report weekly	✅
Scale profitable radius to other cities	❌

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❓ Frequently Asked Questions

Q: What is radius targeting in Google Ads?

Radius targeting is a Google Ads location option that lets you target a circular area around your business or a specific point. It’s ideal for local service providers like plumbers or electricians who serve customers within a defined distance. You set a radius in kilometers or miles, and ads show to users within that zone.

Q: How do I set up radius targeting in Google Ads?

In your Google Ads campaign, go to ‘Locations’ under ‘Settings’. Click ‘Advanced search’, then ‘Radius’. Enter your business address or pin a location, choose a radius distance (e.g., 10 km), and save. You can also add bid adjustments for specific radii.

Q: What radius size should I use for a local service business?

The ideal radius depends on your service area. For example, a Dhaka-based plumber might set 15-20 km to cover the city. Start with a radius that matches your typical travel distance and adjust based on lead quality. Use Google Ads’ location report to see which distances perform best.

Q: Can I use radius targeting with other location options?

Yes, you can combine radius targeting with location groups (e.g., country, city) or exclude areas. For instance, target the entire city of Dhaka but add a radius around your office to prioritize nearby customers. This hybrid approach maximizes reach while keeping focus.

Q: How do I optimize radius targeting for better ROI?

Use bid adjustments to increase bids for users within a closer radius (e.g., 5 km) and decrease for outer zones. A/B test different radii and track conversions via call tracking or form submissions. Also, exclude areas where you don’t offer service, like industrial zones.

Q: Does radius targeting work for mobile users?

Yes, radius targeting works well for mobile users because Google uses device location data. For local searches like ‘electrician near me’, mobile ads with radius targeting often have higher click-through rates. Ensure your landing page is mobile-friendly to maximize conversions.

Q: What common mistakes should I avoid with radius targeting?

Common mistakes include setting too large a radius (wasting budget), not excluding irrelevant locations, and ignoring ‘presence or interest’ vs ‘presence only’ settings. Always choose ‘presence’ to target people physically in the area. Also, don’t forget to add location exclusions for towns you don’t serve.

Q: Does Rafirit Station offer Google Ads radius targeting services?

Yes, Rafirit Station provides professional Google Ads management, including radius targeting setup and optimization. Our team in Dhaka specializes in local service campaigns for Bangladeshi businesses. Visit our Google Ads page for more details or book a free consultation.

🎯 The Bottom Line

Radius targeting is not just a nice-to-have; it’s the foundation of any successful local service Google Ads campaign in 2026. The counterintuitive truth is that you can actually increase your total leads by decreasing your target area if you bid aggressively on the most valuable nearby customers. Most small businesses fear they’ll miss out by targeting too small, but the data shows that tighter targeting with higher bids yields better ROI.

Start small, test rigorously, and always track conversions by location. With the strategies outlined here—from basic setup to advanced layering—you can turn your Google Ads account into a lead-generating machine for your local service business in Bangladesh.

⚡ Your Next Step (Do This Today)

1. Log in to Google Ads and navigate to your campaign settings. Check your current location targeting. If you haven’t set radius targeting, add a 10 km radius around your business.
2. Export your location report from the last 30 days. Identify any areas generating clicks but no conversions – add those as exclusions.
3. Create a simple bid adjustment: increase bids by 20% for the 3 km radius around your office.
4. Enable call extensions and set up phone call conversions (choose ‘calls from ads’ as conversion action).
5. Write two new ads: one with a local keyword in the headline (e.g., “Electrician in Gulshan”) and one general. Launch them as an A/B test.

💬 Drop “radius targeting” in the comments and we’ll send you our free radius targeting checklist — no email required.