I just spent a good amount of time chatting with a Google AdWords representative about a campaign that we run in Costa Rica related to events such as weddings and parties. She noticed that we had our language setting to Spanish only. She suggested to me that I add English also because, as she explained, if someone searches for our keywords using Google.cr or Google.mx, they will see our ad. However, if someone searches for our keyword using Google.com (even though they are phsyically located in Costa Rica) they would not see our ad. She told me that the language setting isn't just related to the language their browser is set in but also the Google domain they choose to use for a search.
Can anyone verify this information and perhaps explain a little more about this? I've read some help pages on the matter but I would like to get some real-world input as well.
Re: Language targeting
This is a nice question;
I started to type my reply and on a second thought deleted it and started a new one, because I think the Rep misunderstood you.
It is correct that each Google's domain has default language. However, this can be changed, either using the user's Google's account setting (if logged in), or by changing the browser language settings.
Now, if you had a user outside Costa Rica searching about Costa Rica, and have English as his UI language, he most likely adds Spanish as another / additional language.
A user physically in Costa Rica, who would like to use an English UI, could do that on Google.cr. He doesn't have to switch to Google.com (which is not straight forward setting). And even if he did, he most likely would keep Spanish an additional language (since he is in a territory in which Spanish is spoken)
So my opinion: your setting is correct. Adding google.com is a redundancy, it would not harm, but it is a redundancy.
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