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Views content on the Google Display Network related to a geographic location. A location mentioned on a page may not always indicate interest in that location. For example, someone who is reading news about San Francisco isn’t necessarily interested in ads for San Francisco florists. For that reason, we'll determine location from a limited set of pages when we believe it can be useful for targeting your ads.

We may also estimate an approximate physical location or location of interest and serve relevant ads based on a person’s past searches or physical location, if they’ve enabled these features.
That reminds me that I need to do a last double-check of the targeting on all my client accounts, to block this expanded serving.  I did check before, but I like to be sure....
ya I dont really like the display network influence when it comes to ad serving on the Search Network.  
It's tricky, isn't it?

I mean, for newbie advertisers or those who don't really understand what they're doing, it could be great or it could be disastrous.

For those of us who know what we're doing--well, if we wanted those other areas targeted, we'd have been targeting them already. :)

Have to say, not seeing the benefit on this one.
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