These figures come from Glass Door. It's a lot lower than I expected, but you will not find a good/dedicated one for less than $80,000. If you do they are just there temporarily until they find a better paying position. 

Option two or three would be your best option more than likely.

There are some basic geo setting in Google Adwords that Google recommends. I do not, and never have. It simply makes them more money, and effects your campaign in a negative way. 

Here is a good example. This is from a client of mine in Wareham, Massachusetts. They offer a product that sells to a specific area about 15 miles around their location. The product is something a customer will not drive many miles for because they can get it locally for the same price.

The previous paid search vendor was serving ads mostly in Boston. In fact, 85% of their paid search budget was wasted with sloppy geo targeting. With the same budget, I increased their local paid search traffic by 85% resulting in more sales and opportunities.

There are many other factors and KPI's (Key Performance Indicators) to monitor. Most importantly, don't be focused or sold on CPC (Cost Per Click). Cost Per Conversion is what matters most.

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