According to Google it is not (http://www.google.com/ads/sitetargeted.html) However, I have successfuly run site targeted campaigns? What gives? The problem I am also finding is that I have a couple of sites that I would like to target. When I setup the ad and search for the URL, I get the message that the site is not available for targeting. However, when I actually go to their site, I can click on the Google "Advertise on this site" link and sign up that way. My ads never actually appear on their site though. Is it because of the keywords I have used in the ad or what? I also have the ads targeted to a specific area, but I know they get traffic from users in that area, so I should at least be getting impressions. I think I will need to get another degree just to learn how to use all these mysterious Google features
You can advertise on sites if they are part of the Google content network. On the chosen site it will show in the adsense listings.