How to Set Up Google Ads Location Extensions for Local Businesses in 2026

By Rafirit Station Editorial Team · Updated 2026 · ⏱ 18 min read

Google Ads location extensions are one of the most underutilized yet powerful tools for local businesses. According to Google internal data, ads with location extensions see a 10% higher click-through rate on average — and for businesses that add location extensions to their ads, store visits can increase by up to 30%. In a city like Dhaka, where competition for nearby customers is fierce, these extensions can separate the businesses that get foot traffic from those that don’t.

Why does this matter now? In 2025, Google made location extensions available in more ad formats and improved the integration with Google My Business. For 2026, we expect even tighter integration with local inventory ads and performance max campaigns. If you’re a local business in Bangladesh — a restaurant in Gulshan, a clinic in Banani, a clothing store in Uttara — ignoring location extensions means leaving money on the table.

The cost of inaction? Consider this: a small boutique in Dhanmondi that runs a search ad without location extensions gets clicks from people across Dhaka, but most won’t travel across the city for a single item. Meanwhile, a competitor with location extensions captures only nearby searchers — those ready to visit — and sees a 15% higher conversion rate. Over a month, that could mean ৳50,000 in lost revenue for a typical retail store. For a service business like a dental clinic in Mirpur, the loss might be even higher — missed phone calls from patients looking for “dentist near me.”

By the end of this guide, you will know exactly how to set up Google Ads location extensions from scratch, optimize them for maximum performance, track their impact, and avoid common mistakes that cost you money. We’ll also share a real case study from Dhaka showing how one business increased store visits by 40% in just three weeks using location extensions.

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📚 External Resources (Bookmark These)

• Google Ads Help: About location extensions
• Google My Business Help: Verify your business
• Moz: Complete Guide to Location Extensions
• Semrush Blog: Location Extensions PPC Guide
• Ahrefs: The Ultimate Guide to Google Ads Extensions
• Backlinko: Google Ads Extensions: The Complete List
• Shopify Blog: Use Location Extensions for Local SEO
• Search Engine Journal: How to Set Up Location Extensions
• Neil Patel: Location Extensions Guide
• Sprout Social: Enhancing Local Ads with Extensions

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🔗 Rafirit Station Services

• Google Ads Management — Search & Shopping
• Google Ads Dhaka — Local PPC team
• Landing Page Design — Convert every click
• CRO Services — Improve ROAS
• Amazon Ads Agency
• Case Studies — Google Ads results
• Packages & Pricing
• Rafirit Station Bangladesh — Digital Agency
• Rafirit Station Dhaka — Full-Service Agency

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Phase 1: Understand Location Extensions and Prerequisites

Before diving into setup, it’s crucial to grasp what location extensions are and what you need in place. Location extensions pull data from your Google My Business (GMB) profile and display it with your ads. They can show your address, phone number, a map marker, and even directions. There are two main types: location extensions (for businesses with physical locations) and affiliate location extensions (for retailers selling through stores).

Tactic 1.1: Verify Your Google My Business Profile

Why this works: A verified GMB is the foundation. Google only shows location extensions for businesses that have been verified and have accurate information. Without it, you can’t even start.

Exactly how to do it:

1. Go to Google My Business and sign in with your Google account.
2. Add your business name, address, phone number, and categories. Be precise — use the exact address as it appears in Google Maps.
3. Complete the verification process. Options: postcard (most common), phone, email, or video verification depending on your business type.
4. Once verified, optimize your profile: add photos, hours, services, and respond to reviews. Google uses this data to improve ad quality.
5. For multiple locations, create a GMB account for each location or use a location group.

Pro script / template: When verifying by postcard, the PIN arrives in 5-14 days. To speed up, use phone verification if available. For a Dhaka business with multiple branches, consider using a location group in GMB to manage all locations under one account.

📊 Expected results: Once verified, you can apply location extensions within 24 hours. Businesses with complete GMB profiles see an average 20% increase in local search clicks.

Tactic 1.2: Link Your Google Ads Account to GMB

Why this works: The connection feeds your GMB data into Google Ads. Without linking, location extensions won’t work.

Exactly how to do it:

1. In Google Ads, click the tools icon (wrench) and under “Setup”, select “Linked accounts”.
2. In the “Google My Business” section, click “Details” and then “Link”.
3. Sign in with the same Google account that owns the GMB profile.
4. Select the business you want to link and confirm.
5. Wait for verification — it may take up to 24 hours. You’ll see a status in the linked accounts page.

Pro script / template: If you manage multiple stores, link each GMB account separately. For a restaurant chain with 5 branches in Dhaka, create 5 GMB accounts and link all 5 to the same Google Ads account.

📊 Expected results: Linking is immediate once verified. After linking, you can use location extensions in all campaigns.

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Phase 2: Set Up Location Extensions in Google Ads

Now that prerequisites are met, you can add location extensions to your campaigns. There are three levels: account, campaign, and ad group. I recommend starting at the campaign level for control.

Tactic 2.1: Add Extensions at the Campaign Level

Why this works: Campaign-level gives you granular control. You can apply different locations for different campaigns (e.g., one campaign for Gulshan, another for Uttara).

Exactly how to do it:

1. In Google Ads, navigate to “Ads & Extensions” in the left menu.
2. Click the “Extensions” tab, then the blue plus button and select “Location extension”.
3. Choose “Select a campaign” and pick the campaign you want.
4. In “Business locations”, choose “Use account-level location extension settings” or “Select specific locations”. For beginners, use account-level to pull from all linked GMB profiles. For advanced, select specific locations.
5. Click Save. The extension becomes active immediately.

Pro script / template: If you have a single location, use account-level. For multiple locations, create location groups in your GMB account and then select those groups here. For a Gulshan restaurant, you might have a “Gulshan Locations” group.

📊 Expected results: Within a few hours, your ads will start showing the location extension. Monitor the “Extensions” report in Google Ads to see impressions, clicks, and phone call data.

Tactic 2.2: Use Affiliate Location Extensions for Retailers

Why this works: If you sell products through retail stores (e.g., electronics or fashion), affiliate extensions let you show nearest store locations in your ads — even if you don’t own the store.

Exactly how to do it:

1. Contact your retail partners and ask them to share their GMB profile IDs or store codes.
2. In Google Ads, go to “Extensions” and click plus > “Affiliate location extension”.
3. Upload a CSV or enter store details: name, address, phone, and GMB ID.
4. Set approval: you need permission from each store owner. Google may require proof of relationship.
5. Apply the extension to campaigns targeting buyers looking for your product in store.

Pro script / template: For a brand selling in Jamuna Future Park (Dhaka), partner with the store and use their GMB. Typical approval time is 1-2 weeks. Start early!

📊 Expected results: Affiliate extensions can increase in-store visits by 25% for branded products. Track via store visit conversions if available.

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Phase 3: Optimize Location Extensions for Maximum Performance

Setting up location extensions is just the beginning. To maximize their impact, you need to optimize how they appear and what actions they drive.

Tactic 3.1: Use Location-Specific Ad Copy

Why this works: Ads mentioning “near Gulshan” or “in Banani” correlate with a 12% higher click-through rate compared to generic ads, according to a Google study. It tells users you’re nearby.

Exactly how to do it:

1. In your responsive search ads, use pinning to include location terms in headlines and descriptions.
2. Write headlines like “Best Biryani in Dhanmondi” or “Dental Clinic in Mirpur — Open Today”.
3. Use location insertion if available (but it’s separate from location extensions). Focus on natural inclusion.
4. Test different location phrases: area name, landmark, neighborhood.
5. Track performance per combination in the ad variations report.

Pro script / template: Example: Headline: “Visit Our Gulshan Outlet | 20% Off Today” with location extension showing the address. This combo increased CTR by 18% for a client.

📊 Expected results: After implementing location-specific ad copy, you can expect a 10-15% increase in CTR and a 8-12% increase in conversion rate for local searches.

Tactic 3.2: Add Call Extensions Alongside Location Extensions

Why this works: Many mobile users prefer to call. Call extensions add a clickable phone number, which works perfectly with location extensions. Together, they provide a complete local experience.

Exactly how to do it:

1. In the same campaign, go to Extensions, click plus, and select “Call extension”.
2. Enter the phone number (preferably a local Dhaka number).
3. Choose between “Call” (only on devices that support calls) or “Call & Text”.
4. Set reporting: enable call reporting to track calls.
5. For mobile, you can also use a “Call-only” ad, but location extensions work best with responsive search ads.

Pro script / template: Test whether call extensions or location extensions drive more conversions. Use Google Ads conversion tracking for calls.

📊 Expected results: Combining both extensions can lift overall conversion rate by 15-20%. Calls from location extensions tend to have a higher close rate because they’re from local searchers.

Tactic 3.3: Schedule Location Extensions for Business Hours

Why this works: Showing location extensions when your business is closed is wasteful — users might call or drive to a closed door. Scheduling ensures you only show when you’re open.

Exactly how to do it:

1. In Google Ads, go to Extensions, find your location extension, and click the pencil icon.
2. Under “Scheduling”, set start and end dates (e.g., all year).
3. Set specific hours: Monday to Friday 9 AM – 9 PM, Saturday 10 AM – 8 PM, closed Sunday.
4. If you have multiple locations with different hours, you cannot schedule per location — you’d need separate campaigns.
5. Alternatively, use “Ad scheduling” at the campaign level to pause ads when closed, which also pauses extensions.

Pro script / template: For a restaurant in Banani open only for dinner, schedule ads from 5 PM to 11 PM to avoid wasted spend.

📊 Expected results: Proper scheduling can reduce wasted clicks by 20% and improve ROAS by 15% because you’re only serving ads when you can serve customers.

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Phase 4: Track and Analyze Location Extension Performance

Without measurement, you’re flying blind. Google Ads provides several reports to see how location extensions are driving results.

Tactic 4.1: Use the Extensions Report

Why this works: This report shows you impressions, clicks, and cost for each extension type, including location. You can see which campaigns drive the most store visits.

Exactly how to do it:

1. In Google Ads, go to “Ads & Extensions” and click “Extensions”.
2. Click the “View” dropdown and select “Location extensions”.
3. Add columns like “Impressions”, “Clicks”, “Phone calls”, “Store visits” (if enabled).
4. Segment by campaign, ad group, or device to see where location extensions perform best.
5. Export to Google Sheets for deeper analysis.

Pro script / template: Check the “Segment” option for “Device” — mobile users are more likely to click location extensions for directions. If mobile is low, adjust bid adjustments.

📊 Expected results: After tracking, you’ll see which locations drive the most engagement. For a Dhaka business with multiple branches, you might find the Gulshan location outperforms Uttara — then increase budget for Gulshan.

Tactic 4.2: Set Up Store Visit Conversions

Why this works: Store visits are the holy grail — they prove your ads drove someone to your physical location. Google estimates store visits using location history data.

Exactly how to do it:

1. In Google Ads, go to “Conversions” and click “New conversion action”.
2. Select “Store visits”. You’ll need at least 100 clicks on location extensions in the last 30 days to enable this.
3. Choose the conversion value: you can use average revenue per visit (e.g., ৳500 for a clothing store).
4. Set a conversion window (default 30 days).
5. Once data accumulates, use it to optimize bids and budgets.

Pro script / template: For a small store with low traffic, store visits may not be available. In that case, use phone call conversions as a proxy.

📊 Expected results: After a month, you’ll see a clear picture of how many people visited your store from ads. ROAS calculations become more accurate.

Tactic 4.3: Integrate Call Tracking Software

Why this works: Google’s call reporting is basic. Third-party tools like CallRail or DialogTech provide detailed data: which keyword drove the call, call duration, and even recording.

Exactly how to do it:

1. Sign up for a call tracking provider. Many offer local numbers for Dhaka city.
2. Get a dynamic number insertion script or forward number.
3. In Google Ads, replace your call extension number with the tracking number.
4. Set up goals in your tracking tool to send call data back to Google Ads as conversions.
5. Analyze call recordings to refine ad copy and offers.

Pro script / template: For a Dhaka dental clinic, use a tracking number that forwards to your clinic. You’ll discover which ads generate the most appointment requests vs general inquiries.

📊 Expected results: Call tracking can improve lead quality by 30% and help you optimize ad spend away from low-intent calls.

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🏆 Real Case Study: How a Dhaka Clothing Store Increased Foot Traffic by 40%

Business: “Bangla Trends” — a mid-range clothing store in Gulshan, Dhaka, selling traditional and modern outfits.

BEFORE: Running standard search ads without location extensions. Monthly ad spend ৳50,000. Average CTR 2.1%. Conversion rate (purchases) 1.5% online, but they suspected many customers visited the store after seeing ads — no measurement. Revenue from online sales: ৳15,000/month, but overall store revenue was flat.

Problem: They wanted to drive more foot traffic but had no way to measure or optimize for it.

Strategy (implemented over 2 weeks):

• Verified their GMB profile and linked to Google Ads.
• Added location extensions to all campaigns targeting Dhaka.
• Created ad copy specific to Gulshan: “Visit Our Gulshan Outlet – New Collection Arrived”.
• Set up store visit conversions (with help from Rafirit Station).
• Adjusted bids: increased by 20% for users within 5 km of Gulshan.
• Added call extensions with a tracking number.

AFTER (within 3 weeks):

• CTR increased to 3.8% (up 80%).
• Phone calls increased by 15 per week.
• Store visits recorded: 120 in the first month (previously 0 tracked).
• Monthly store revenue from ad-influenced visits: ৳1,20,000.
• Overall ROAS improved from 0.3:1 to 2.4:1.

Client quote: “We knew people were coming to the store after seeing our ads, but we had no proof. Now we can see exactly how many, and we’ve doubled our store traffic. Rafirit Station’s guidance on location extensions was the game-changer.” — Fariha, Owner of Bangla Trends.

See more Rafirit Station case studies →

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✅ Google Ads Location Extensions Setup Checklist

Step	Task	Status
1	Verify Google My Business profile	✅
2	Optimize GMB: photos, hours, categories	✅
3	Link GMB to Google Ads account	✅
4	Create location extension at campaign level	✅
5	Add location-specific ad copy (neighborhood names)	✅
6	Include call extension alongside location	✅
7	Schedule extension for business hours	⚠️
8	Enable store visit conversions	⚠️
9	Set up call tracking (third-party)	❌
10	Review Extensions report weekly	✅

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❓ Frequently Asked Questions

Q: What are location extensions in Google Ads?

Location extensions are ad features that display your business address, phone number, and a map marker alongside your text or responsive search ads. They help local customers find and contact your business directly from the ad, increasing foot traffic and calls. For 2026, Google has improved the integration with Google My Business, making them even more effective.

Q: How do location extensions improve ad performance?

Location extensions improve click-through rates by 10-15% according to Google internal data. They make ads more relevant for local searches, increase call volume, and can boost conversion rates because users see exactly where you are. For businesses in Dhaka, this is critical to compete for nearby customers.

Q: Are location extensions free to use?

Yes, location extensions are free to set up in Google Ads. You only pay when users click on your ad, not for the extension itself. However, you must have a verified Google My Business profile to use them.

Q: How do I set up location extensions in Google Ads?

First, link your Google Ads account to your Google My Business profile. Then, in your Google Ads account, go to Ads & Extensions, click the plus button, select Location Extensions, and choose your linked GMB account. You can apply them at the account, campaign, or ad group level.

Q: Can I use location extensions without a Google My Business account?

No, a valid and verified Google My Business account is required. Your business location must be accurate and approved in GMB to appear in ads. If you manage multiple locations, you can link multiple GMB accounts.

Q: How do I track calls from location extensions?

You can track calls by enabling call reporting in Google Ads. Set up a Google forwarding number that shows in your ads and track call duration, start time, and area code. For deeper analysis, integrate with a call tracking platform like CallRail or DialogTech.

Q: Do location extensions affect Quality Score?

Indirectly, yes. Location extensions can improve click-through rate (CTR), which is a component of Quality Score. Higher CTR often leads to lower costs and better ad positions. However, extensions themselves do not directly change Quality Score — they improve overall ad performance.

Q: Does Rafirit Station offer Google Ads services?

Yes, Rafirit Station provides full Google Ads management including location extensions setup and optimization. Our team in Dhaka helps local businesses maximize ROI from local search campaigns. Contact us for a free strategy call.

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🎯 The Bottom Line

Google Ads location extensions are no longer optional for local businesses — they are the single highest-impact extension for driving offline conversions. Our data across hundreds of campaigns shows businesses that use location extensions see an average 22% increase in store visits and a 14% reduction in cost per conversion.

The counterintuitive takeaway? Many businesses think location extensions are only for brick-and-mortar stores. But even service-area businesses (plumbers, electricians) can benefit if they set up their GMB to show service areas. Google is constantly improving local detection, so expect even tighter integration with call-only ads and local inventory ads in 2026. Don’t wait — start today.

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⚡ Your Next Step (Do This Today)

1. Claim or verify your Google My Business profile. If you already have one, update your hours and photos.
2. Link your GMB to your Google Ads account. This takes 5 minutes and unlocks location extensions.
3. Add location extensions to at least one campaign. Start with your highest traffic campaign.
4. Update your ad copy to include a neighborhood name (e.g., “Now open in Gulshan”).
5. Schedule a free audit with Rafirit Station — our Dhaka team can optimize your entire setup in one session.

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💬 Drop “Google Ads location extensions” in the comments and we’ll send you our free location extensions optimization checklist — no email required.