Google has improved the "target customers by location" feature in the AdWords console, which lets you specify where in the world you want Google to show your ads. You can target countries, cities, regions, or any other geographic area you'd like.
If you use the AdWords Standard Edition, you'll notice a new version of location targeting. With the newly added interactive map, you can see all the locations you've selected. They've also added more flexible targeting options that cater to your unique advertising needs. For example, let's say you run an online store, and you ship to all of the United States except Hawaii and Alaska. With these new targeting options, you can target your campaign to the U.S. and exclude those two states. Or, you might run campaigns that are relevant to markets across the United States and a few cities in Europe -- now you can target all of those locations in one single campaign.[Google AdWords Blog]
You can see old screen captures of the multi-step process at the Search Engine Roundtable, but the new method is much more intuitive. You are given four tabs that include "Search," "Browse," "Bundles" and "Custom." The interface overlays this screen above the AdWords interface and utilizes Google Maps technology to make it, dare I say it, fun. SEL Blog
Here are screen captures of the new interface:
To access this yourself, login to your AdWords account, click on a campaign, then click on "edit campaign settings," then click on "Edit" under "Locations" within "Target Audience."
If you'd like to learn more about the new location targeting features, visit the location targeting section of help center.Google, AdWords, New Features, Featured News