Today around 12:00pm EDT, a post was uploaded to r/whenthe by u/concussionmaker_91 about how despite their multiple privacy measures, Reddit was still able to ping their location and show them an ad about a business in close proximity to their house. Then, in less than 2 hours after the post when live, their year old account was permanently banned. 
Redditors in the comment section used a website called SnooSnoop to see if this account has done anything malicious in the past that may be grounds for a ban only to find nothing. 
I don’t think this is a mere coincidence and some comments I read on the post may be there to dismiss the situation.
I’m currently working on archiving the post and comments in case Reddit decides to try and erase this entire situation from the web, I’ll attach the files when I do.
You just don’t get it by only concealing IP address. I bet if they also managed to avoid browser fingerprinting and giving clues about their location through their use of the site, that would have been enough that Reddit isn’t showing advertising based on location.
The biggest lie of the internet is that VPNs give you privacy.
They give you privacy from on-path attackers (ISP, network peers) from snooping on your traffic, that’s about it. Maybe also mixing your traffic into everyone else sharing the VPN server.