Google Ads defaults location targeting to "People in, or who show interest in, your targeted locations." For a plumber in Austin, that means someone in Dallas reading a blog post about Austin water heaters can still see the ad. Clicks go up, calls don't.
Take a dental clinic running Search in one city. Switching to "People in your targeted location" usually cuts impressions a lot, but what you lose is mostly people researching from far away, not people who can book a chair next Tuesday. Interest-based targeting makes more sense for a national product or a travel brand. For anything you serve in person, I'd go presence only and look at the location report before deciding.
Has anyone seen interest targeting bring in customers who actually converted?