A month ago, Yahoo made some serious enhancements to the search marketing platform, improving the local targeting capabilities amongst other features.

WebmasterWorld moderator, werty, has been gathering local data since the feature has been released and has posted the somewhat disappointing results. werty said in a WebmasterWorld thread:

Werty goes on to share:

These are some serious insights and hopefully this is only a bug that is impacting this individual advertiser. I do highly doubt it though and I wonder if Yahoo will respond to this.

Forum discussion at WebmasterWorld.

Update: Yahoo responded in the thread asking: