The Power of Ad Extensions – What does it Mean for My Business?

The New Power of Ad Extensions

Up until October 2013, Ad Rank was based on two factors, your max Cost per Click bid and your Quality Score. This all changed when Google made a significant change to their Ad Rank algorithm. This update has had a substantial impact on those using Google Ad Words. It is important to understand the effect Ad Extensions can have on your Ad Rank and how they can benefit your business. 

How does it Work?

Ad extensions can now influence the position of your ad on the search results page.  If two competing ads have the same bid and quality score, then the ad with the more positive expected impact from extensions will generally appear in the higher position on the page.

What Are The Benefits?

Your ads become more relevant and useful for the searcher, increasing the likelihood that they will click on your ad. By displaying the right message, address, phone number or location you can have a direct impact on your click through rate. It is also important to consider the impact resulting from the extra real estate your ad occupies on the page, especially if your competition isn’t utilizing extensions. There are different types of ad extensions, some more suited to businesses then others. Below are some of the more commonly used extensions and their benefits:

  • Sitelink Extensions: Link to different pages of your site
  • Location Extensions: Show your business/company location on a map
  • Call Extensions: Link a Click-to-Call phone number
  • Social Extensions: Connect your endorsements of Google+ pages to your ads
  • Seller Ratings Extensions: Show your business ratings
  • Product Extensions: Display product details and images

See how to incorporate Ad Extensions into your campaign with Google Adwords Support.

What if I Don’t Have Ad extensions?

Google is now encouraging advertisers on the search network to incorporate ad extensions. Advertisers who haven’t added extensions are now at a disadvantage. If your business doesn’t have them you should look at incorporating them into your campaigns as soon as possible for the best possible success. 

Disclaimer: This article was produced as part of a learning initiative for our graduate program. The tips and facts presented are not necessarily shared by



  1. How Google determines Adrank
  2. 5 Tips to Create Good Adcopy
  3. What is Online Banner Advertising?



  1. Web Marketing Today – Understanding Adwords Ad Extensions
  2. Google: Inside Adwords – How to Choose the Best Ad Extension
  3. Moz – How to Use Adwords Ad Extensions

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