Well, let me do something to remove your confusion here. So think about it, if you try to communicate with others who don’t speak the same language, you might find it tough to get your message across. Similarly with Adwords, I am sure, you want your ads to appear for customers who can understand them and avail their benefits.
Language targeting allows you to choose the language of the sites that you’d like your ads to appear on. So once Language setting is done, Google will show your ads to customers who use search or Display Network in that same language. But make sure that your ads are written in the language that you are planning to target, because unfortunately Adwords doesn’t translate ads or keywords.
Adwords allows you to target your customers through Display Network as well, So If your coffee business has an image ad for freshly ground coffee with Spanish ad text, and you can target your ads to run only on Spanish language websites.
So, language targeting is the right way to reduce the number of people who will view your ad and it makes your target audience a little more specific, which saves your money and helps you optimize your campaigns very well.