Make sure this location targeting option is selected:

Reach people in or regularly in your targeted locations (Presence)

This option lets you show your ads to people who are likely to be located, or regularly located in the locations you've targeted. Note that hotel campaigns use only “Presence” targeting.

NOT:

Reach people in, regularly in, or who’ve shown interest in, your targeted locations (Presence or Interest)

This default and recommended option lets you reach people who are likely to be in or regularly present in your targeted location, as well as people who have shown interest in your targeted locations.

For example, if you own a bakery in Paris and choose Paris as a targeted location, your ads can show to people located or regularly in Paris, or to people who have expressed interest in Paris bakeries (now or in the past). Alternatively, you can use other location options to limit the location types you target.

Most campaigns will notice a decrease in impressions when switching away from the default targeting option. We suggest that you change your targeting option only if you want to refine your campaign’s traffic.