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How does demographic targeting work in the new AdWords UI?

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In the old AdWords UI, demographic targeting such as household income was a filter of sorts on geotargeting, so basically you would choose the area of interest, such as California, and then specify what locations you wanted to target within that AOI that met the household income requirements.

 

In the new AdWords UI, demographic targeting appears to be at the same level as geotargeting. I'm able to specify income level targets without any reference to locations. How does AdWords know which locations I want to do the demographic targeting under? Or it is something different from what the old UI used to offer?