Google has begun automatically appending location extensions to eligible Google Display Network ads when users are nearby and express interest in a certain category of business.
Like location extensions in Search and Maps, display ad location extensions will include information such as photos, business hours, and store location.
Google display ads with location extensions will be shown to users who are near the location and may be interested in a particular business. Google gives the example of a user browsing a food blog being shown and ad for a local bakery complete with location extensions.
Internal data from Google indicates location extensions lead to an increase in clicks to a business, with 60% of clicks being related to directions or store information.
Location extensions can be added to display network campaigns campaigns by selecting the option to “Extend my ads with location information.”