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Local businesses face challenges when they receive business leads to which they cannot cater to, through ads that are not properly targeted. To address this situation, Google has released Ad Extensions. Google Ad Extensions is an expanded version of a standard text ad with additional business information such as an address of a business. For example, if a user searches for a hotel in Boston and an ad shows up with an address of a hotel in Boston with the location, there is a high probability that the user will click on the ad. In this way, you can target prospective customers who will convert a query into business.
Here is how Google Ad Extensions appear in a search result:

It is easier to lure customers if they know you are located in an area that is relevant to their search. These prospective customers might show interest in your company due to proximity. For example, a collector searches for antiques and sees your ad with the ad extension and your address in the search result. There is a high chance that this collector will come to your store to purchase the antique.
You can now use Google Ad Extensions to gain visibility among non-local customers. For example, a user in New York searches for a vegetarian restaurant to eat at during his visit to San Francisco. Immediately after he hits return, your ad appears with the name of your restaurant along with the address, in the area he was looking for. This helps the user get the required information with extra information that is relevant to him.
If one of your branches has a special offer on the products in a specific location, then it becomes easy to showcase the local address with the ad.
As Google Ad Extensions make your ads more relevant to users, there is a higher chance that they will click on your ads, increasing the ads’ click through rate.
You can get reports from Google Ad extensions that contain information on the performance of your ad campaigns. This can help you understand how your various ads are performing, the CTRs of your ads and how many of them have contributed to successful conversions.
Google gives you the option to add an unlimited number of addresses to your ad. But be informed that only addresses added from the Local Business Center listing are unlimited. If you enter addresses that are not on the Local Business Center listing, you can only enter up to nine addresses.
Google Ad Extension is a useful way to increase conversions from areas where your business is located. This is an advantage when you target prospects from a specific region.
Contributed by Chetan Prakash Umarani
Thats very good to know… thanks