I manage campaigns for a local, independent contractor. The business runs ads with a meager budget, <$500 a month. At the same time, clicks average around $5. The conversion rate hovers around 15% for those within the service area. That's a cost per conversion of ~$30.

For those who are outside of the service area it's less than <1%. While it may only receive a handful of clicks from outside the area a month, it eats into the already minuscule budget for the long shot of a person who decides to look up the service while on vacation or visiting relatives. It's not efficient ad spend for a business like this.

A SaaS business is a different case, but this issue is persistent and getting worse.