What metrics should you track to evaluate the success of location extensions?

To evaluate the success of location extensions in your Google Ads campaigns, you should track a combination of metrics that reflect both user engagement and overall performance. Here are key metrics to monitor:

1. **Click-Through Rate (CTR):**
   - **Definition:** The percentage of users who click on your ad after seeing it.
   - **Importance:** A high CTR indicates that users find the location extension relevant and engaging. If your CTR is high, it suggests that the location information is attracting clicks.

2. **Conversion Rate:**
   - **Definition:** The percentage of users who complete a desired action (like making a purchase or signing up) after clicking on your ad.
   - **Importance:** This metric shows how well your location extension drives valuable actions. A high conversion rate suggests that users who click on your ad are more likely to convert, indicating that the location information is effectively leading to actionable results.

3. **Conversions:**
   - **Definition:** The total number of completed actions (e.g., purchases, sign-ups) resulting from users who interacted with your ads.
   - **Importance:** Tracking total conversions helps you understand how many users are taking action due to your location extensions, which directly impacts your business's goals.

4. **Cost Per Click (CPC):**
   - **Definition:** The average cost you pay for each click on your ad.
   - **Importance:** Monitoring CPC helps you evaluate the cost-effectiveness of your location extensions. A higher CPC might indicate competitive bidding or that the location extension is driving high-value traffic.

5. **Cost Per Conversion:**
   - **Definition:** The average cost associated with each conversion.
   - **Importance:** This metric helps you assess the efficiency of your location extensions in driving profitable actions. A lower cost per conversion means that location extensions are contributing to conversions at a reasonable cost.

6. **Impressions:**
   - **Definition:** The number of times your ad is shown.
   - **Importance:** Tracking impressions helps you understand the reach of your location extensions. If impressions are high but CTR or conversions are low, it might indicate that the location extension is not compelling enough or not reaching the right audience.

7. **Engagement Metrics:**
   - **Click-to-Call Conversions:** The number of calls generated directly from the location extension.
   - **Store Visits:** For physical locations, the number of visits attributed to users who saw the location extension. This data may require linking your Google Ads account with Google My Business.

8. **Location Performance Data:**
   - **Geographic Reports:** Analyze how your ads perform in different geographic locations. This helps determine which areas generate the most engagement and conversions.
   - **Local Actions:** Track specific local actions like directions requests or calls that are directly attributable to your location extensions.

9. **Return on Ad Spend (ROAS):**
   - **Definition:** The revenue generated for every dollar spent on advertising.
   - **Importance:** A high ROAS indicates that your location extensions are contributing positively to your revenue and justifying the ad spend.

10. **Quality Score:**
    - **Definition:** A measure of the relevance and quality of your ads, keywords, and landing pages.
    - **Importance:** Although not specific to location extensions, a higher Quality Score can indirectly reflect the effectiveness of location extensions by indicating overall ad quality.

Regularly reviewing these metrics will give you insights into how well your location extensions are performing and where you might need to make adjustments to improve their effectiveness.