Precision Targeting in LA: The Rise of Geo-Fencing Over Radius Campaigns

Geo-fencing is quietly outperforming radius-based targeting in competitive Los Angeles markets — here’s why it matters for your PPC.

When running Google Ads for a local business in Los Angeles, understanding how you define your target area can make or break campaign ROI. While most advertisers rely on the default “radius” targeting, savvy marketers are switching to geo-fencing—and seeing impressive results.

Quick Takeaway

A/B tests in Koreatown and Downtown LA show that geo-fencing delivered up to 35% lower cost-per-lead than radius-based campaigns.

Let’s unpack the difference—and when to use each.

Radius Targeting vs. Geo-Fencing — What’s the Difference?

Radius Targeting (The Classic Approach)

• Defines a circular boundary around a central address (e.g., 2 miles from your store)
• Fast and simple
• Works well for broad reach, but lacks precision

Geo-Fencing (The Smart Upgrade)

• Allows you to draw boundaries around specific streets, buildings, or competitor locations
• Offers surgical precision
• Requires more setup, but delivers highly relevant clicks

Real A/B Test Results from LA Businesses

Test #1: Koreatown Med Spa

• Radius: 1-mile zone around spa ➝ CPL = $45
• Geo-Fencing: Competitor addresses ➝ CPL = $33 (–27%)

Test #2: DTLA Lunch Café

• Radius: 2-mile radius ➝ CPL = $20
• Geo-Fencing: Office buildings and co-working hubs ➝ CPL = $14 (–30%)

Geo-fencing puts your ads in front of high-intent users at just the right location.

How to Set Up Your Own Geo-Fencing Test

1. Choose Your Zones: Map out top competitor addresses or strategic locations
2. Create a Radius Campaign: Use your business address as the center
3. Create a Geo-Fenced Campaign: Upload custom locations via Google Ads or third-party tools
4. Run Simultaneously: Keep creative, budgets, and settings identical
5. Compare CPL, CTR, and Conversion Quality

Budget + Ad Copy Tips

Smart Budgeting:

• Start geo-fencing campaigns with 20–30% of total ad spend
• Scale once validated with results

Ad Copy Differences:

• Radius ad: “Serving All of Silver Lake”
• Geo-fence ad: “Tired of Long Waits at [Competitor]? We’re 2 Blocks Away!”

Landing Page Tip:
Include local trust boosters like maps, neighborhood callouts, and testimonials from nearby clients.

When to Use Which Strategy

FAQ

What’s geo-fencing in Google Ads?
Geo-fencing lets you place ads only around specific streets, competitor stores, or custom areas—not just a radius.

Is geo-fencing more expensive?
No. In fact, it’s often cheaper per lead because you’re targeting users with higher intent.

Can I run both strategies together?
Yes. Just make sure you separate campaigns for clean performance tracking.

🤔 Want Smarter LA Ad Campaigns?

If you’ve been using radius targeting only, you might be overpaying for underperforming traffic. A geo-fencing test could unlock better leads at lower cost.

👉 Book a strategic audit now and ask us to compare both for your business.