Location targeting is just as it sounds, you use a specific location to reach your intended audience. You can choose to select an entire country, a specific region, a state, or even a town that you want your ad to appear. Say you are a small business and you only want your ad too appear to people living within 30 miles of your business. All you have to do is put in your location and then track a thirty mile radius around it. Another important bit of information to keep in mind with location targeting is that you want to pick areas that you are able to serve. If you only ship within the United States then targeting your ad outside of the USA would not make sense.
Language is another key way you can target your ads. If you create a product that is known internationally then you can target your ads to reach people who speak all different type of languages. For example, if you sell furniture that people in Paris love but you are located in the U.S. you can target your ad to French speaking individuals. You should remember that your keywords should be written in the language that you are targeting as well.
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