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Google AdWords, Ad Extensions and Price Extensions – Defined

Google's AdWords, Ad Extensions and Price Extensions, Defined

In 2000, Google introduced a service called AdWords. It allows businesses to pay for space on Google’s front page – the mecca of all billboards.

Over the last 17 years, Google has expanded on its original concept quite a bit by creating Ad Extensions and Price Extensions. They are separate pieces of the search engine giant’s advertising puzzle.

In this blog, we will break down how all of these terms are defined and how they benefit your business.

What is AdWords and how do I use it?

Google’s AdWords platform only charges businesses for an ad when a visitor clicks on it. Think of it as seeing a physical billboard on the interstate, and deciding whether or not you read what it advertises. You know it’s there, but do you go the extra step and read the words on the sign? That is Google AdWords. And businesses only pay for the ad when a visitor clicks on it. Hence “Pay-per-Click” (PPC).

Google has a list of best practices for businesses just starting out. Things to note:


  • Consider only advertising to the city or region where your business is located so you get the most qualified customers
  • Set your budget conservatively until you get into the swing of things. What is the maximum amount of money you are willing to pay for a visitor to come to your website? Think of this in terms of ROI and if $2.10, $1.70 or $4.36 is worth advertising to – per person.
  • Think through which keywords your ideal customer may be searching for. Use real-life examples of questions your customers ask on the phone and narrow in on the words they use the most. Shorten that up. As an example, our customers are searching, “best web design agency.” So that is one of the keywords phrases we sink money into.

What are Ad Extensions?

In its earliest iterations, AdWords was very limited text. A couple of lines of shortened words and not much descriptive language. You saw a headline with a sub-header under it, and that was it.

Ad Extensions tripled the amount of real estate ads take up. No longer just a headline, businesses can add in descriptive text like addresses, phone numbers and other information that enables users to find what they need quickly. These extensions are perfect for businesses localizing their marketing.

Examples of ad extensions -- call outs: phone number, free shipping, open 24/7 (things that will separate your business from others) (12 different kinds; price is 1 of many that can show up with an ad).

What are Price Extensions?

Google is always evolving and Price Extensions are their latest update to the AdWords platform. These are a type of Ad Extensions displayed as a card under a business’ main advertisement on a search page. They are mainly for local businesses to display prices for individual services or events, locations, etc.

When a user clicks on the card, they are directed to a landing page geared towards the specific card they chose. A business can purchase up to 8 cards at a time, so an auto shop may have an advertisement about oil changes that points to a landing page about oil changes, a tire rotation card pointing to a landing page about tire rotations, etc. These cards just flip out every time a new user searches for the business’ keywords. User 1 sees the first card. User 2 sees the second, and so on.

Price Extensions appear across all devices now, which is an important addition because users can click directly on a phone number or address straight from their mobile device.

Relevant ads mean relevant customers

If users are searching for a specific term, it is 99.99999% likely they need a product or service. Using AdWords to draw in someone who has already identified a need puts your business on the Internet’s biggest billboard. Can you afford NOT to fund your AdWords account?

What are some of the things keeping you from starting your PPC campaigns? Are you up and running but worried your keywords aren’t quite right or want to test a few against one another? Let us know your pain points in the comments below or reach out to our team of expert SEO managers. The Creative Momentum’s Pay-Per-Click Advertising Service may be exactly what your business needs to get on the front page of search engines.  

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