The Impact of Ad Extensions on Click-Through Rates and Conversions

What Are Ad Extensions? Types and Features. 

Ad extensions are additional pieces of information that you can include in your Search ads. They supplement the standard text within ads by offering more details or actions for users to take. These extensions can include extra links, phone numbers, or special promotions, making your ad more appealing and relevant to searchers. Below is a list of the primary types of ad extensions: 

#1 Sitelink Extensions

These provide additional links to specific pages on your website. Ideally, these should be pages from which visitors can immediately convert. They appear below the main ad, and help users navigate directly to relevant pages, thus shortening the customer journey. Sitelinks can boost click-through rates by making it easier for customers to find the information they’re most interested in, quickly. As asserted by the ‘paradox of choice’ theory, while too many choices can overwhelm, well-structured, limited sitelinks guide users to take confident action by reducing decision fatigue and anchoring them toward clear paths.

#2 Callout Extensions

These are short snippets of text that highlight key features, benefits, or the unique selling points of your business, products, or services.

#3 Structured Snippets

These display additional, non-clickable information about your product or service using predefined headers, such as, “Types” or “Destinations.” They appear below the description of your ad, and highlight specific details to give potential customers more context at a glance. 

#4 Promotion Extensions

These highlight special offers or discounts that can entice users to click through to take advantage of limited-time deals. Promotion extensions leverage ‘loss aversion’, a key principle in behavioural economics that suggests people are more motivated by the fear of missing out on a deal than by the potential of gaining something of equal value, or by the potential of gaining something later. 

#5 Call Extensions

These display your business’s phone number directly within the ad, enabling users to call your business with one click—especially useful on mobile. According to the behavioural principles of ‘cognitive ease’, when actions feel easier, people are more likely to follow through. Reducing steps between intention and action increases the likelihood of conversions.

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#6 Location Extensions

These show your business address, making it easy for users to find your location or navigate via Google Maps. Location extensions satisfy the principle of ‘proximity bias’, where people tend to favour and act on options that are geographically closer, especially for services or purchases requiring immediacy. You should take advantage of this. 

How Do Ad Extensions Improve CTR?

Higher CTRs indicate that your ads are capturing the attention of users and compelling them to click. Ad extensions directly contribute to this by providing users with more options and more reasons to engage with your ad. They…

…increase ad visibility, and…
One of the primary reasons ad extensions boost CTR is that they take up more space on the SERP. Ads with extensions often appear larger and more visually appealing, making them more noticeable among competing ads. This additional space allows users to engage with more relevant information right off the bat.

…enhance ad relevance.
Ad extensions enable you to address specific user needs directly in the ad. For example, a user searching for “24/7 emergency plumbing” is more likely to click on an ad featuring a call extension with a visible phone number and a callout extension stating “24/7 Service Available.” By preemptively answering questions or offering next steps, ad extensions make your ad more relevant and user-friendly. 

How Do Ad Extensions Improve Conversions?

Ad extensions can influence not just the number of clicks but also the quality of those clicks, leading to better conversion rates overall. They…

…ensure better pre-qualified traffic, and…
When you use ad extensions, you provide more detailed information in the ad itself, which helps potential customers decide if they are interested in what you’re offering before they even click. This means the users who do click are more likely to convert because they already have a clear idea of what to expect.

For example, a price extension showing the cost of a product or service can help weed out users who are price-sensitive and unlikely to convert, while attracting those who are ready to purchase. Similarly, a promotion extension showcasing a discount can drive more conversions by highlighting an irresistible offer.

…streamline the user journey.
Ad extensions, particularly call and location extensions, are excellent for reducing friction in the customer journey. Mobile users searching for local services (like a nearby restaurant or dentist) are more likely to convert if they can quickly call or navigate to your location directly from the ad. This simplifies their decision-making process, making it more likely for them to act right away. Reducing friction aligns with the ‘nudge theory’. By making the desired action the path of least resistance, you’re nudging users toward high-value behaviours without requiring extra effort.

Key Takeaways: 

• Ad extensions enhance ads by adding context, visibility, and engagement points, which boost CTR and conversions.
• Types ad extensions include (but are not limited to) sitelinks, callouts, structured snippets, location, call, price, and promotion extensions.
• Extensions expand ad space, making ads more noticeable and relevant, which can increase CTR.
• By pre-qualifying leads and reducing friction, extensions streamline the customer journey, and improve conversion rates.

Want to find out how incorporating ad extensions into your strategy could drive more clicks and conversions for you?  We’d love to help you take your campaigns to the next level – reach out to one of our team to get started!