Google launches location-based mobile display ads

Google introduced AdWords location extensions that let advertisers put their businesses' location and phone number on a Google map ad for mobile websites and applications. The company is looking to target ads to smartphone users who often use Google Maps to get directions and find businesses.

Ads on Google Maps with location extensions

Google Maps users will see such ads surface as banner text ads with a business icon that expands to show the business location on a Google map along with the ad creative, click-to-call phone number and directions.

Click-to-call ads let advertisers add local business numbers alongside their destination URLs in mobile search ads. When smartphone users search for a local business from their mobile phone (such as Apple's iPhone and Android phones) and see ads that have these numbers, they may simply click the number to call the business.

While one may think that a Google ad that leverages user location would leverage the GPS capabilities of handsets as well as Google's location servers, Google will merely use IP addresses to determine users' locations.

Location extensions ads have greater ROIs

Business advertisers are actually not charged when users click to expand the map or get directions, advertisers are only charged when a user clicks to call the business or clicks to visit its website.

Click-through rates are also up 6% when Google provides a phone number and 8% when it offers a local address with ads.