TL;DR:
Switch every campaign from "Presence or interest" to "Presence only." Use town-by-town targeting for irregular service areas, radius only when your area is genuinely circular. Exclude Boston proper if you do not serve it. Add bid adjustments to push budget toward your highest-value towns. Local Services Ads handle geography differently from Search ads and require separate configuration.
Presence vs. Interest: The Default That Wastes Your Budget
When you create a new Google Ads campaign and select a target location, Google quietly pre-selects a setting called Presence or interest under Location options. It does not highlight this setting. It does not explain it. It simply defaults to it, and most contractors never change it.
Here is what that setting does: it shows your ads not only to people physically located in your target area, but also to anyone who has recently searched for, read content about, or otherwise signaled interest in your target location, regardless of where they are sitting. A person in Springfield searching "roofing contractor Worcester" from their living room can trigger your Worcester-targeted ad. You pay for that click. They are not in Worcester. They are not your customer.
The correct setting for any service-area business is Presence only (labeled "People in or regularly in your targeted locations"). This limits your ads to people who are physically present in the areas you have targeted. For a contractor who drives to jobs, "Presence only" is not a conservative option -- it is the only setting that makes sense.
To change this setting: open your campaign in Google Ads, go to Settings, scroll to Location options, expand it, and switch from "Presence or interest" to "Presence." Do this for every campaign you are running. The change takes effect immediately and does not reset when you edit other campaign settings, but it is worth checking after any major campaign edit because Google has occasionally reverted it during campaign restructuring.
Why Google Defaults to "Presence or Interest"
Google's incentive is volume. "Presence or interest" expands your eligible audience, which produces more impressions, more clicks, and more ad spend. That is good for Google's revenue. It is not necessarily good for a Worcester plumber who cannot drive to Boston for a job. Understanding that this default exists and actively works against your interest as a local contractor is the first step toward running campaigns that do not hemorrhage budget on unserectable clicks.
Radius Targeting vs. Town-by-Town Targeting
Once your location match type is set to "Presence only," the next decision is how to define your target geography: a radius from your business address, or a manually built list of specific towns and cities. Both are legitimate approaches. The right choice depends on the shape of your actual service area.
When Radius Targeting Works
Radius targeting is the right call when your service area is genuinely circular -- when you will drive equally in any direction from your base. This works well for contractors whose shop sits near the center of their market. A Worcester roofer willing to travel 15 miles in any direction can set a 15-mile radius from their Worcester address and capture Worcester, Shrewsbury, Millbury, Auburn, Leicester, Holden, Sterling, and Boylston in one setting. The radius does not respect town lines, but if your commitment to travel is consistent regardless of direction, the radius approach is fast to set up and easy to maintain.
The practical risk of radius targeting is that it captures geography you did not intend. A 15-mile radius from central Worcester extends into Grafton to the south and Leominster to the north. If you have no interest in Leominster jobs, you are paying for clicks from people there. That leak is correctable with negative locations, which are covered in the next section.
When Town-by-Town Targeting Is More Precise
Town-by-town targeting means adding specific cities and towns to your campaign individually. This approach is more work to set up but gives you complete control over which municipalities receive budget. It is the right choice in three situations: when your service area is irregular (you serve some towns but skip adjacent ones), when your area crosses county or state lines in ways a radius would handle poorly, and when you want to apply different bid adjustments to different towns without complex radius-overlay math.
Consider a Framingham contractor who serves Framingham, Natick, Ashland, Holliston, Southborough, and Marlborough but does not take jobs in Boston proper. A radius from Framingham that reaches all of those towns would also extend into Newton, Waltham, and the inner suburbs, where jobs are expensive to win and margins are thinner due to longer drive times and more competitive pricing. Town-by-town targeting lets this contractor include exactly the six towns they want and exclude everything else -- including Boston -- without needing negative locations to clean up radius bleed.
The Worcester Roofer Case: Radius vs. Adjacent Towns
Here is a concrete example of how these two approaches play out for a Worcester roofing contractor. The contractor covers the central Worcester market plus the adjacent towns where their referral network is strong.
Option A: Radius targeting. Set a 15-mile radius centered on Worcester. This covers Worcester plus roughly 15 surrounding towns. Setup time is about two minutes. However, the 15-mile radius also includes parts of Northborough and Hudson to the east, and clips into Winchendon to the north -- areas where the contractor does not have established relationships and where the drive time cuts into job profitability.
Option B: Town-by-town targeting. Add Worcester, Shrewsbury, Auburn, Millbury, Grafton, Northborough, Westborough, Holden, Leicester, and Paxton individually. Setup time is about ten minutes. The contractor now targets exactly their profitable footprint. When they want to expand south toward Sutton or north toward Sterling, they add a town. When a particular town underperforms on conversion rate, they can pause it or reduce its bid adjustment without touching any other area.
For most Massachusetts contractors with non-circular service areas -- which is most of them -- Option B produces less waste and more actionable data over time.
Excluding Low-Value Areas: Negative Locations for MA Contractors
Negative locations work exactly like negative keywords: they prevent your ads from showing in areas you have explicitly excluded. They are your second line of defense when your primary targeting is broader than your ideal footprint.
The most common use case for Massachusetts contractors is excluding areas that fall inside a radius but outside the real service area. A South Shore contractor using a 25-mile radius from Quincy will capture parts of Plymouth County and, depending on the center point, may clip into Cape Cod. If that contractor does not serve the Cape, Barnstable County should be a negative location. If they do not serve Rhode Island and their radius extends south, Rhode Island goes in as a negative.
A second use case specific to the Massachusetts market is excluding Boston proper. For a Framingham contractor, a radius that reaches all of their core service area will often extend into Newton and the inner suburbs. Adding Boston proper as a negative location removes expensive, competitive, low-converting clicks from Boston addresses from the campaign. Boston CPC rates are meaningfully higher than rates in the MetroWest suburbs, and conversion rates for out-of-Boston contractors are lower because homeowners in Boston tend to find local contractors through the neighborhood social networks first. The math almost always favors excluding Boston if you do not specifically serve it.
To add a negative location: in your campaign, go to Locations, click the Search tab to find locations to add, then switch to the Excluded tab and search for what you want to block. You can exclude at the state, county, city, or postal code level.
Bid Adjustments by City: Spending More Where It Pays
Location bid adjustments let you increase or decrease your bids for specific areas within your target geography. If you are targeting ten towns but three of those towns produce 70 percent of your revenue, bid adjustments let you compete more aggressively in those three towns without overpaying in the others.
The setup: in your campaign Locations tab, you will see every location you have added. Next to each one is a bid adjustment column. Click the cell to set a percentage increase or decrease. A +20% adjustment on Worcester means that when a user in Worcester triggers your ad, your effective bid is 20% higher than your baseline, which improves your ad position and increases the likelihood of appearing at the top of results for searches from that city.
A practical approach for a contractor starting out with location bid adjustments: set the baseline (0% adjustment) for all towns, run for 30 days, then pull the location report (covered in a later section) to see which towns are producing conversions at what cost. Towns with low cost-per-lead and high lead volume deserve positive adjustments. Towns with high cost-per-lead and few conversions may warrant negative adjustments, or removal from the campaign entirely.
Bid adjustments compound with other adjustments, including device and time-of-day adjustments. If you have both a location bid adjustment of +15% and a mobile device adjustment of +10%, the combined adjustment for a mobile click from that location is approximately +26.5% (1.15 x 1.10 - 1). Keep that math in mind when stacking adjustments to avoid inflating bids beyond what the job economics support.
The "Boston Metro" Mistake That Drains Contractor Budgets
One of the most consistent and expensive location targeting mistakes contractors make in Massachusetts is targeting "Boston metro" or "Greater Boston" as a location, especially when their actual business is based in a suburb and they rarely or never work in the city itself.
The problem has two dimensions. First, "Boston" as a Google Ads location target is interpreted broadly. Google may expand your targeting to include the Boston DMA (Designated Market Area), which stretches from the North Shore down through Providence, Rhode Island. That is a lot of geography for a contractor who operates primarily in the MetroWest corridor or along Route 128.
Second, clicks from Boston proper are expensive. Boston has high population density, more competing contractors per square mile, and CPCs that run above the Massachusetts average for most contractor categories. A Natick HVAC company paying Boston-level CPCs for leads they cannot serve efficiently is losing money on every Boston click.
The correct approach is to target specific service towns by name. If you serve Natick, add Natick. If you serve Newton, add Newton. If you do not serve Boston proper, do not add it, and consider adding it as a negative location to make sure radius bleed or "Presence or interest" carry-over does not pull in Boston traffic after you make your other fixes.
This specificity also helps with ad relevance. When you run separate ad groups for specific towns, your ads can include the town name in the headline and description. "Roof replacement in Natick" outperforms "roof replacement near you" in click-through rate and, more importantly, in conversion rate, because the homeowner sees that you explicitly serve their area before they click.
Local Services Ads vs. Traditional Search Ads: Location Targeting Differs
Google operates two paid-placement systems for contractors: traditional Search ads (pay-per-click, keyword-targeted, with the location targeting controls described throughout this article) and Local Services Ads (LSAs), which appear above Search ads and operate on a pay-per-lead model with a Google Guarantee badge.
These two systems handle location targeting differently, and contractors who run both need to understand the distinction to avoid paying for redundant coverage or creating gaps in their presence.
How Local Services Ads Handle Location
In Local Services Ads, you do not set keyword lists or bid on locations in the same way you do in Search campaigns. Google controls which searches trigger your LSA based on your business category, your service area settings within the LSA dashboard, and your Google Business Profile. You set a service area by city and zip code in the LSA account, and Google determines when to show your ad based on proximity and relevance signals it calculates internally.
Critically, LSAs do not have a "Presence or interest" vs. "Presence only" toggle. Google manages the geographic matching for LSAs on its end, and contractors have less granular control. The lever you do have is the service area configuration: be specific about which zip codes and towns you include. Over-broad service areas in LSAs lead to low-quality leads from areas you cannot serve economically, which drag down your lead score and may reduce your ad frequency over time.
Layering LSAs with Search Campaigns
Because LSAs appear above Search ads and carry the Google Guarantee badge, they tend to get higher click-through rates for high-intent queries like "roofer near me" and "roof repair [town]." Traditional Search campaigns tend to perform better for queries with more specific intent -- branded searches, specific services, or longer-tail questions that a homeowner is researching rather than immediately converting on.
The practical approach for a Massachusetts contractor running both: configure LSA service areas to match your actual core service towns, and let Search campaigns cover the same geography plus adjacent towns where you are willing to take jobs but where LSA coverage is thinner. Use the location report from Search campaigns to identify which towns are generating leads, then compare against your LSA lead data to see where the two channels are overlapping vs. complementing each other.
Reading the Location Report to Catch Leaks
Even after you have configured location targeting correctly, your campaign will occasionally show ads in unexpected places. This can happen because of how Google interprets "regularly in" for the Presence match type, because of geographic ambiguity in certain queries, or because a setting reverted during a campaign edit. The location report is where you audit for these leaks.
To pull the location report: in your Google Ads campaign, go to Insights and reports in the left navigation, then select "Where ads showed." Set your date range to the last 30 to 90 days and review the data. The report has two tabs: user location (where the person was physically) and location of interest (what location they were searching about). For most contractors, the user location tab is more actionable.
Sort by clicks descending. The highest-click locations at the top of the list should all be within your service area. If you see a location that surprises you -- a town you do not serve, a city that is outside your radius, a neighboring state -- add it as a negative location immediately and check your campaign settings to understand how it got through.
Run this audit monthly. Location data accumulates slowly, so a 30-day window may not capture occasional outlier locations. A 90-day window gives a fuller picture of where your budget has actually gone. For campaigns with smaller daily budgets where individual anomalous clicks represent a larger share of total spend, consider running the report more frequently until you are confident the campaign is geographically stable.
The combination of correct location match type, explicit town-by-town targeting (or a tightly bounded radius with negatives), bid adjustments based on actual conversion data, and monthly location report audits is what separates a campaign that generates qualified local leads from one that bleeds budget across geography where you cannot compete. None of these steps require outside help -- but all of them require intentional setup. Most contractor campaigns have never received that intentional setup, which is why location waste is one of the first things we address in a Google Ads management engagement for a new client.