AdWords Place Names

Do those of you who are knowledgeable with AdWords recommend including place names (cities, towns, counties, etc.) in keywords, or not? I know I can target a campaign to specific geographic areas, but could I get better results if the search query includes a place name that matches my keyword?

For example the keyword "Cape Cod website design" seems it would get better results if the search also included those words. It seems to me that a potential client searching for a broad service like website design would be inclined to include their location, especially if they don't realize that Google already knows where they are located. Or maybe Google can take a place name from the search and match it to geographically targeted campaigns. Does anyone know if it does that?
 
Top