Location Extensions vs. Location Targeting vs. Location Bid Adjustment in AdWords

Sometimes it is a bit confusing what a location extension is, location targeting or even for what exactly location bid adjustment are used. This is supposed to be a little guide to clarify what exactly the three things are, because it seems that people are mixing them up a lot. In this series of small articles about the different localization options that you have in AdWords, I would like to start with the easiest one: Location Extensions. However, to give a quick answer, in a nutshell you can say that Location Extensions are additional information which appear when your ad is triggered. Location targeting is a setting to show your ads to different customers using their geographical location. And you can use Location Bid Adjustment e.g., to bid more for an ad that is shown to a customer who is close by your shop.

And if you still want to know more about the three topics, please continue reading:

Location Extensions

It is very simple, the term extensions tells you already that in your ad will appear showing more information, once you have enabled the location extensions. The information shown can include:

  • Business address
  • Phone number
  • Map Marker
  • On mobile it can include a link with directions to your business.

Why should you use Location Extensions?

Simply when you want to point out a physical store, for example. It really doesn’t make sense to use location extensions when you just sell online. But if you do have a physical store, then the following points might convince you to use it:

  1. Most importantly, your ad is taking up more space in the search and, therefore, is more visible for the user, according to Google they also have a 10% higher CTR.
  2. You can encourage people to check out your store in person.
  3. If you link your Google MyBusiness account you can appear with multiple locations.
  4. It is possible to target an exact radius around your address.

Where can your ad appear?

Your ad can appear on the Google Search Network, Google Search Network Partner Sites, Google Maps, and on mobile devices. You have the full control on where you want to show your ads as well as what location you want to show in the ad. You can decide on a campaign or ad group level which business names, categories and/or labels you want to show.