Ad extensions are a type of ad format that show extra information about your business. Some can be added manually and others are automated. Their importance is reflected primarily in increased visibility and conspicuousness of your AdWords ads. They usually refer to the ads on the top 3 positions and less for ads on the right side or at the end of the organic search results.
If a hypothetical two competing ads have the same range and quality, the ad that has a higher expected impact of the extension ad is more likely to appear in a higher position.
Another reason why you should use Ad extensions is higher Click-through rate of ads as a consequence of the greater visibility of ads. This will certainly affect a better return on investment in AdWords advertising because more clicks mean a higher traffic to the clients website.
Managing ad extensions can be done at the level of the entire accounts, campaigns and ad groups. If you want to create Ad extensions, you should go to your campaign settings and then clickon the "Ad extensions" tab.
How does the AdWords ad extensions work?
AdWords shows one or more extensions with your ad when it calculates that the extension will improve your campaign performance and when your Ad Rank is high enough for it to appear. Adding an extension won’t guarantee that it will show up with your ad, but you can keep track of it and check when your extensions are appearing on the Ad extensions tab.
How much ad extensions cost?
Defining and adding extensions is free. On the other hand, you're going to be charged as usual for clicks on your ad.
For example, click on the "Call" button when browsing from mobile devices will be charged as a standard click on the ad. Clicks on review extensions, social annotations and seller rating annotations are an exception – they are free.
Where the ad extensions can be displayed?
Ad extensions appear with ads on the Search network and depending on the extension, they might also appear with ads on the Display network.
What are the types of ad extensions available to advertisers?
1. App extensions
Show a link below your ad text that sends people to the app store or begins downloading your app.
2. Call extensions
Let people click a button to give you a phone call.
3. Consumer ratings annotations
Show off what customers appreciate with high-quality survey data.
4. Location extensions
Help people nearby find your nearest storefront or give you a call.
5. Previous visit annotations
Show people if they've clicked through to your website from Google Search results before.
6. Review extensions
Show your potential customers previous users reviews.
7. Seller rating annotations
Show your online business ratings with your ad.
8. Sitelink extensions
Add links to help people find what they’re looking for.
9. Dynamic sitelink extensions
Add dynamically generated sitelinks to help people find more relevant pages on your site.
10. Callout extensions
Add descriptive text to your ad to help people learn more about what you have to offer.
11. Social annotations
Show how many Google+ followers you have.
What types of ads are the most important?
From my personal experience, the most important are Sitelinks, Callout and Call extensions. You should definitely use them.
You still believe that the ad extensions are not necessary for your advertising goals? Maybe this fact will convince you!
Another very important reason for using ad extensions is that Google has changed its formula to rank your ads (so called “Ad rank”). Earlier, the Ad Rank was calculated as the product of the maximum cost per click (Max. CPC) and the quality of your ads (Quality score).
At the end of last year, ad extensions were added to the formula of calculating Ad Rank. Therefore, if you want your ads to be in top positions and if you want as lowest prices per click as possible, use ad extensions!
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