I think you are following the [Installing SmartTarget Web service instructions][1] from the manual. That one mentions `Go to your Content Delivery %TRIDION_HOME%\config directory and copy the smarttarget_conf.xml file to the classes or config subdirectory of your Web application.`. The installer will place the `smarttarget_conf.xml` in the TridionHome/config but you can also copy it from the installation media in `SmartTarget 2014\Content Delivery\configuration\samples`.

In any case, try to align the `smarttarget_conf.xml` across your web applications, just like you would do for the cd_storage_conf.xml. This will make the maintenance of the configurations a lot easier. The following applications are using the `smarttarget_conf.xml`:

 - SmartTarget web service / Content Delivery web service (the one you are looking at)
 - CD deployer
 - Presentation server / your website webapp


  [1]: http://sdllivecontent.sdl.com/LiveContent/content/en-US/SDL_SmartTarget_2014-v1/GUID-C46FC390-C929-418D-9B11-AB052EF3CF0E