With some recent improvements to AdWords, advertisers can now modify bids for different locations all through a single campaign. Location-specific bids can help you achieve higher ad rank in places where you get the best response and spend less in regions and cities that don't work as well. For example, a retailer selling snow tires can set higher bids for customers searching from snowy Colorado than for people who are located in sunny California.
First, you'll need to analyze the results you are getting from you current target locations. To see location specific data, follow these steps: