Google recently announced on Google+ the rollout of new distance reporting and targeting features for location extensions.
The distance report can be found under the Dimensions tab and allows you to view impressions, clicks, costs and conversions data, segmented by the distance users were located when they viewed your ad (between 0.7 miles and 40 miles)…
Although this report was just introduced, it provides data since November 2013 so you can already begin reviewing historical data and optimize your campaigns accordingly with the new location extension targeting feature.
The targeting feature can be found by navigating to Settings > Edit > Advanced Search > Location Group > Location Extensions. Here you can add more granular location targeting to your campaigns by selecting different radiuses around your business locations.
With location extension radius targeting in place, you can begin setting different bid adjustments for each. For instance, if you are looking to attract more customers to a retail store, it may be beneficial to increase bids for users within closer radiuses and decrease them for users who are located further away. Utilize the distance report so you can make adjustments appropriate for your specific goals.