Step 5: Choose Your Customer

• Select Set Up Specific Areas (It is more specific and you will know exactly where your traffics are comming from)
• Write down the names of cities, states or countries that you prefer you Ads to appear.
• The square on your right side shows the potential audience size that your Ads will reach.
  
• Once you are done and satisfied with the selection of your audiences, Click Next.

NB: Note that you can still adjust and find newer customers after completely setting up your Ads.

Step 6: Define Your Product

• Click English button if you need to change the language.
• Under Business Category, type the name of your product or services that your Ads will be showing. For example, I typed Affiliate Marketing as my porduct and Google has shown me relevant related keywords that I can choose from. Google always shows broader keywords so in order for you to narrow it down to small amount of audience, you need to enter you own keywords.
• Click Add Another button to add other related keywords relevant to the business category you choose.
• When you are done defining your product Click Next.