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Home / PPC / Google Ad Extensions: Why Location Extensions Have The Largest Impact On Performance

Google Ad Extensions: Why Location Extensions Have The Largest Impact On Performance

May 6, 2021 By Eric Bodziony

Adding location extensions to your Google Ads account? Here’s what you need to know about these Google ad extensions from Ignite Visibility’s Sr. Paid Media Strategist, Eric Bodziony.

If you’ve already linked your Google My Business account in Google Ads, you’re ready to add location extensions to your campaigns.

Even if you’ve added numerous extensions before, you should know that this one’s different. Google Ads local extensions may have the largest impact on performance than any other extension. Plus, they open up a whole new world of cool reporting features.

Google Ad Extensions: Why Location Decisions Have Largest Impact on Performance

Google Ad Extensions: Why Location Decisions Have Largest Impact on Performance

Google Loves Local Extensions

In short,  local extensions show ads for your business that include your address, map, phone number, or distance from the viewers’ home.

By clicking the ad, users are led to your Google My Business page where they can get more pertinent information about your business. It’s a real hub of info that provides users with precisely what they’re looking for in a concise way.

Google ad extensions like this one are not like other extensions you may know about. For one, they’re different from image or price extensions, where you add them and see few (if any) impressions.

When you add location extensions, you can expect them to show up frequently. At Ignite Visibility, we find that about 80% of all impressions serve location extensions.

The fact of the matter is that Google wants to optimize searches, and location extensions are a way for them to do so.

Why Location Extensions Have the Largest Impact on Performance Out of All Google Ad Extensions

There are a few types of queries on Google (including local, informational, and transactional). Almost half of Google searches are local searches, so they take up the largest chunk of the 3.5 billion Google searches per day.

Google Ads local extensions make it easier for a potential or existing customer to call your business’ phone number, visit your storefront’s address, or simply find out the NAP (name, address, and phone number) of your business for future reference. All of this is stellar for your brand.

Location extensions aren’t the only kind of extension in Google Ads. There’s also:

  • Callout extensions to get customers to buy from you in-store and convert on your site
  • Call extensions to get customers to call you
  • Sitelink extensions to get customers to convert on your site
  • Structured snippet extensions to get customers to convert on your site
  • Price extensions to get the customer to convert on your site
  • App extensions to get people to download
  • Lead form extensions to get first-party data
Various Google Ad Extensions

Various Google Ad Extensions

All of these are great, but they don’t deliver a serious CTR boost in the same way location and affiliate location extensions do (more on affiliate location extensions in a bit).

Count On Your Performance to Change for the Better (CTR Included)

Impressions are bound to increase from using localized Google ad extensions.

Once you implement them, your ads may now appear on Google Maps, including the maps app. This is super interesting given that Google Maps is the clear leader in the navigation app segment with more than 154 million monthly active users.

Google Ads Local Extension Showing Up as the First Result on Google Maps

Google Ads Local Extension Showing Up as the First Result on Google Maps

As a result of visibility like this, your click-through rate (CTR) will increase as much as 25% from local Google ad extensions alone. This is because your listing is larger, more robust and more relevant to the user.

Another example of placement includes on the SERP of a local search. Not all searches are localized, but a solid chunk of them are. Data suggests as much as 46% of all Google queries are local.

Google Ad Extensions Put to Work on SERP for Local Search

Google Ad Extensions Put to Work on SERP for Local Search

You’ll also see location extensions run on Display Network campaigns, so this can be a solid way to optimize existing and new ads alike.

There’s even the option of having them show on your YouTube ads. YouTube TrueView in-stream and bumper ads allow for location extensions when users are near you based on their IP or shared address, and for users who have frequently searched your area.

If you have images (either posted by yourself or by loyal customers), these will also show up on your click-through location page. Images are often a deciding factor on whether someone tries a new establishment.

Think of it this way. More clicks are being driven away from your site and to your Google My Business page. Your conversion rate (CVR) for on-site conversion actions will decline as a result of fewer users being directed to your website, but your Google My Business CTR will reap the rewards.

You’ll See New Conversions Courtesy Of Google Ads Local Extensions

In the realm of conversions, you’ll experience more store visits, which will boost your foot traffic margins in a marked way.

Plus, your Google-hosted conversions will increase (also called local actions conversions, which are added to your account once you enable Google Ads local extensions).

Google-hosted conversions are unable to contribute to the “conversion” column, so you have to create a custom column to monitor and optimize toward click-to-call conversions. This is relevant because we typically see that more users will call a business from the location extension rather than their website.

Google Hosted Conversations Are More Likely to Result in a Call Than On-Site Info

Google Hosted Conversations Are More Likely to Result in a Call Than On-Site Info

Let’s imagine a scenario. Someone in Delray Beach, Florida searches for “vintage clothing store” in hopes of finding one nearby. A business that has activated its Google Ads local extensions will show up on top. If the user clicks through, they’re led straight to its Google My Business page, which divulges all the information a customer needs to convert. The user likes what they see and makes an impromptu Saturday outing to the local vintage clothing store that’s about to be their new favorite hangout.

This is just an example, but it’s a real scenario. Local extensions cause conversions like this all the time, and there’s no reason your business will be any different.

Take Advantage of New Reporting Opportunities from Google Ad Extensions

It’s not just CTC and CRV that see a difference once you utilize localized Google ad extensions. It’s also your reporting capabilities within Google Ads itself. This means that you can analyze your results, potentially predict future outcomes, and optimize your ads as necessary.

The “distance from location extension” is a new dimension that will become available in the reporting tab. Use this report to advise what radius you should target around your location.

There’s also the per store report for you to take advantage of!

There’s also an existing favorite, call reporting. By enabling call reporting, you can see a full report of calls made from your location extension.

Whatever the report, you’ll need to make sure your Google Ads account-level reporting is turned on.

How to Set Up Google Ads Local Extensions

Think with Google Location Extensions

Think with Google Location Extensions

Using location extensions is a simple few-step process. It involves setting up the actual extension as well as taking action to optimize your efforts after they’re done.

  1. From your Google Ads dashboard, click Ads & extensions on the left-hand menu.
  2. Click Extensions. You’ll see this at the top of the page.
  3. Click the blue button
  4. Click Location extensions
  5. Link your chain locations directly in Google Ads or link to your Google My Business account.
    • To link chain locations, click Select curated locations, choose your options and save.
    • Alternatively, link your ads to Google My Business, and select the option to show the Google My Business location as the business’ location. Wait for verification.
Google Support: Create Location Extensions

Google Support: Create Location Extensions

That’s only a few steps, but it can make a world of difference. From my vantage point, it’s safe to say you shouldn’t sleep on location extensions.

FAQs On Location Extensions

1. What happens to location extensions if you mark your business as temporarily or permanently closed?

In this case, your Google Ads local extensions won’t show to your potential or existing customers.

2. What if you make products that are sold in stores, but don’t have a store of your own?

You can use affiliate location extensions in Google Ads, too. Basically, this extension is a way for customers to find out where your products are sold near them. Google gives the rundown on affiliate location extensions for your reference.

3. Do location extensions show up automatically?

If you have campaigns up and running, you have to specifically opt out of those who don’t want running location extensions. Some people may want to keep their Google ads extensions honed, but the more the merrier. Your Google My Business click-through rates and conversions are bound to increase as a result.

Wrapping Up

Google Ads local extensions are an absolute must for brick-and-mortar businesses and companies who sell their products in stores.

Given the boost in CTR and CVR, you’d be remiss not to take advantage of this promising extension. In my role at Ignite, I’ve witnessed intense performance spikes that are only attributable to one super effective tool: localized Google ad extensions.

About Eric Bodziony

Eric is a Sr. Paid Media Strategist at Ignite with 5+ years of experience working with large lead generation and e-commerce accounts. He is passionate about developing data-driven paid media strategies and identifying opportunities for growth. He gets way too excited about reporting and nerds out when new features or betas become available within ad platforms. Outside of work, Eric enjoys reading (philosophy, psychology and personal development type stuff), practicing yoga, learning to surf and enjoying live music.

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John Lincoln is CEO of Ignite Visibility, one of the top digital marketing agencies in the nation and a 6x Inc. 5,000 company. Lincoln is consistently named one of the top marketing experts in the industry. He has been recipient of the Search Engine Land "Search Marketer of the Year" award, named the #1 SEO consultant in the USA by Clutch.co, most admired CEO and 40 under 40. Lincoln has written two books (The Forecaster Method and Digital Influencer) and made two movies (SEO: The Movie and Social Media Marketing: The Movie) on digital marketing. He is a digital marketing strategy adviser to some of the biggest names in business. John Lincoln is the editor of the Ignite Visibility blog. While he is a major contributor, he does not write all of the articles.

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