While searching for "Yahoo Search Marketing Blog" on Google (from Australia) I noticed an example of poor AdWords location targeting from Google itself! The ad displayed was: Business Blog Ache blogs com a pesquisa Google ou crie você mesmo um blog grátis blogsearch.google.com If this ad isn't displayed in the UK or US I have posted a screenshot on my blog.
Not google's fault. Google gets your location through your Ip address. Ip addresses changes all the time. Location-IP database is 95% accurate and google can do little about it. text is Portuguese (brazil) not Spanish as you said in your blog.
That's what I thought at first but all the other ad's I've seen are mainly targeted to Australian websites all English speaking. Also there must be some sort of problem as it's using an English title.
The creator of the Ad may not have selected regions... it's not Google's fault if your ISP are using Brazilian IPs.
Yes, it's an english title, but "business" and "blog" are global words, even in brazil Conclusion: Some brazilian created an ad, with some english words in the title and did not selected regions. [edited] ups... ad is from google so Conclusion: Google created an ad, with some global english words in the title and your ISP are using Brazilian IPs