Google just announced some new tools that will make your Google AdWords campaigns significantly more specific and automated.
The first change is the ability to specify a Zip code instead of just a city with a radius attached to it. For example, if you wanted to market to Campus West in Fort Collins exclusively, you could specify a Zip code of 80521 and the ads would only show up to residents in those areas.
On the other end of the spectrum, you can also go local with a national campaign. You can specify {lb.city:Local} in your title and description, and AdWords will fill in the city that the person is in or interested in.
Using either of these tools will allow you to go significantly more specific with your ads and increase conversion from your ads!
Read more here.