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Search Engine Journal reports that Google AdWords is dropping the custom shapes, also known as multi-point / polygon location targets option within AdWords.
What is that? It was the ability to draw on a map and tell AdWords to target only searchers within the drawing. Here is a picture that describes it:
Not sure how I didn't see this a month ago, but according to a Google help document, this feature is sunsetting at the end of 2011. So you can still use it until then, but in 2012, those custom locations will switch to a similar radius location target option. So you have the choice of switching over your custom locations to radius or other location target options.
Plus, location targeting is being completely removed from certain countries on July 8, 2011. The countries and locations include Japan, Denmark, Spain, and the Netherlands, among others. Google said this is due to "changes in real-world geography, or because of duplicate or overlapping locations."
For more details on those locations, see this help document.
Forum discussion at WebmasterWorld.
