Hello,
Sorry, i am a little confused about your question.
Are you talking about "Specify intranet Microsoft update service location"?
If you use http, it should like "http://server.domain.local:8530"
Or are you talking about "Enable client-side targeting"?
If you enable this policy and specify a group name, then you should create the same group in the WSUS console and enable "Use Group Policy or registry settings on computers to assign computers to groups", the the computers linking above policy would
be assigned to the specified group. Refer to following screenshots.


Hope my answer could help you.
Best Regards,
Ray
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