AdWords offers the ability to restrict whom your ads are shown to and exclude locations you do not do business with, or cities and zip codes that are not profitable for you. By showing ads only to locations you are interested in working with, you can improve your results and ROI.
The following is a list of who will benefit from excluding locations:
Business that do not ship to certain states or regions
Businesses that want to avoid working in specific cities or zip codes
Companies that may not be licensed to operate in all states