What counts as interest
Google detects interest in a location from the terms people use in their searches, places they were recently, and content they view related to the location. That is why a campaign targeting one country can still pick up clicks from people elsewhere who searched about it. Presence is narrower but not a fence: it still counts anyone likely to be in the area, including visitors, and Google calls all location targeting a best effort.
Which campaigns have these options
The two options apply to Search, Display and Demand Gen, where Presence or interest is the default and Google's recommendation. Hotel campaigns use only Presence. Location exclusions always use Presence: Google no longer lets Search, Display, Performance Max or Shopping campaigns exclude by interest.
Which one to use
Use Presence when your buyer has to be physically in the area: local services, a delivery radius, or a B2B offer you can only sell in certain countries. Keep Presence or interest when people research a place before they are in it. Google reports that advertisers in travel, real estate and education who switched to Presence or interest saw about 5% more conversions on Search. The full argument is in our piece on the location default that shows your ads abroad.
How to check where clicks came from
Use the Locations table in Report editor, in the When and where ads showed category, which Google describes as users' physical locations regardless of the location used to match the ad. The Matched locations view is not the place to look: an ad matched on interest reports the location you targeted, and location reports only show locations inside the country you target.
Common questions
What is the default location option in Google Ads?
Presence or interest, for Search, Display and Demand Gen campaigns. It reaches people in or regularly in your targeted locations and people who have shown interest in them. You have to switch to Presence yourself. Hotel campaigns use only Presence.
What is the difference between Presence and Presence or interest?
Presence reaches people likely to be located, or regularly located, in your targeted areas. Presence or interest adds people elsewhere who have shown interest in those areas through their searches, places they were recently, or content they view.
Do location exclusions use Presence or interest?
No. Location exclusions always use Presence, which excludes people likely to be located in the excluded areas. Google no longer allows interest-based exclusions in Search, Display, Performance Max or Shopping campaigns.
Where can I see where the people who clicked actually were?
In the Locations table in Report editor, under When and where ads showed. Google describes it as users' physical locations regardless of the location used to match the ad. Matched locations reports the location that matched, which for interest matches is the place you targeted.
Does Presence guarantee only local people see my ads?
No. Presence counts people likely to be in or regularly in the area, including visitors, and Google says location targeting is a best effort without 100% accuracy. Use it to cut out interest from elsewhere, not as a hard boundary.