Guide

Location intent leakage in Google Ads (lead gen)

Location leakage happens when your ads show to people outside your service area or with the wrong location intent. This guide shows how to find the leakage, tighten settings, and clean up the search terms that create waste.

Start with the Search Term Waste Finder and the Search Terms cleanup SOP. If you want the full cleanup done fast, book the Waste Reduction Sprint.

Leakage signals to look for

  • Leads from locations you do not serve.
  • Search terms with city or state names outside your area.
  • High spend from "people interested in" but not in your location.
  • Call volume spikes with low qualification rate.

Example leakage pattern

A local service business targets a 25-mile radius but sees 30% of leads from cities it does not serve. The Location report confirms out-of-area clicks, and Search Terms include city names from those regions. That is location intent leakage.

Why location leakage happens

Google Ads location settings default to "presence or interest." That means your ads can show to users who are outside your service area but searching for it. This is fine for national brands. For lead gen, it is usually wasted spend.

You also get leakage from broad match expansion and vague queries. If you do not add geo negatives or tighten match types, the system will keep buying traffic that does not convert.

Fast fixes (operator table)

IssueSignalFix
Presence or interest targetingOut-of-area clicksSwitch to presence only
Radius too wideLeads far from service areaTighten radius or add exclusions
Search term geo driftCity/state terms outside areaAdd phrase negatives

Location settings checklist

  • Target presence only for service-area lead gen.
  • Exclude known out-of-area cities and states.
  • Review Locations report monthly.
  • Keep separate campaigns for distinct regions.

Audit routine

  1. Pull Search Terms for the last 30-90 days.
  2. Filter for geo tokens outside your service area.
  3. Review the Locations report by city/region.
  4. Map out-of-area leads to waste themes.
  5. Apply exclusions and negatives, then re-check weekly.

Use the negative keyword generator to speed up geo exclusions and maintain a safe list.

Common failure modes

SymptomCauseFix
Out-of-area leads spike after budget increasePresence or interest targetingSwitch to presence only
Geo terms dominate search queriesBroad match driftAdd geo phrase negatives
Good leads drop after exclusionsOver-blocking core termsRebuild a safelist and test changes

Guardrails that prevent regression

  • Presence-only location targeting for service-area lead gen.
  • Explicit exclusions for nearby cities you do not serve.
  • Separate campaigns for different regions.
  • Weekly search term review until leakage is stable.

If you need a full cleanup sequence, follow the wasted spend guide.

FAQ

Should I ever use presence or interest?

Only if you sell nationally or serve remote areas. For local lead gen, use presence only.

Is radius targeting safer than city targeting?

It can be, but you still need exclusions if you serve only a subset of the radius.

Do location settings override search terms?

No. Search terms can still carry geo intent that leaks outside your area.

How often should I audit locations?

Monthly at minimum, weekly during active cleanup.

What to do next

DIY: Build a geo negative list and lock location settings to presence only.

Sprint: Book the Waste Reduction Sprint and receive a documented Waste Report.