How accurate is the Geo-Targeting of Google and Bing/Yahoo PPC ads?

[JKuly]

I have a client who serves a local market and who has had trouble in the past with people out of her service area clicking on ads. She asked how accurate the geo-targeting option is.  I know it's not possible to be completely accurate resolving the location of IP addresses, but was wondering if there are any recent statistics out there regarding how accurate or inaccurate geo-targeting is.  I did some quick searches but did not see any current numbers.

Many Thanks!

[DavidKonigsberg]

Keep in mind it goes based on the location of the isp and not users real address.

[MaryAnneG]

FYI, this may help filter out some of those inaccurate results:

http://adwords.blogspot.com/2011/03/location-targeting-on-adwords-now-with.html

[JKuly]

Thanks, that was real close to my own estimates. Would be interested if anyone had done any actual research into the accuracy lately though.

[flowsimple]

I've read in the past that geo-targeting is about 85% to 95% accurate. That's the short ball park answer.

While search engines are getting better at geo-targeting, I'd say that right now it depends on how specific of a market you're targeting. Done on a national, state or (major) city level and it's going to be pretty accurate to about 95%. If you're narrowing down on specific zip codes, or using custom shapes you will see clicks from non targeted areas.