AdWords Location Extensions: Worth Paying For?

Location extensions have been a great asset to Google AdWords advertisers. Up until just recently, if a user clicked on directions listed under the location extension you wouldn’t be charged for it. You could promote the location of your business and not have to worry about paying for this added visibility. Unfortunately for advertisers this has changed. Now when someone clicks on the directions link, you’ll have to pay just as if someone clicked on the ad headline itself.

What are Location Extensions?

If you’re new to AdWords or unfamiliar with location extensions, they are basically an extension of your ad allowing advertisers to show their businesses address, phone number and a link for directions on Google Maps. These can be used to target one business location or multiple locations. It can also give users quick access to the information they need when looking to physically visit or contact a local business.

Who Should be Still Using Location Extensions

Because this feature can end up costing you money, advertisers now have to ask themselves whether it is worth using. This all depends on the type of business you have or the price you’re paying for your clicks. In most cases there are obvious reasons why you want to continue to pay for location extensions. If your business model revolves around actual physical locations and you’re looking to increase foot traffic, then you’ll definitely want to keep this in-tact. Car Dealerships, Restaurants, Hotels will all likely want to keep the extensions in place.

Who Should Consider Removing Location Extensions

With some advertisers, using location extensions has been more about creating additional real estate for their ad and less about driving consumers to a physical location. Companies that have been listing their distribution facilities or corporate offices may now want to consider removing them from location extensions.

Who Needs to Take a Closer Look at Location Extensions

With some companies, it might not be as clear cut as to whether the extension should be removed. This includes companies which pay a premium for clicks but don’t necessarily rely on foot traffic. Lawyers may be a good example of this. If you’re advertising a law firm, there are advantages of having an extension displaying your office location. It can help to differentiate your ad from the competition and it can allow people determine whether the office is at a convenient location. But is this worth the expensive price of lawyer related keywords? Would your money be better spent removing the extension to ensure users are driven to a targeted landing page?

Anytime extensions are used you need to examine why a user might want to click and determine whether its really worth paying for. Location extensions are going to be an asset in many instances. But now that we’re paying for them, its important to have a closer look.