I received this notice last week, along with all other Google Adwords advertisers:
"Important changes to Google AdWords local business ads
Dear AdWords Advertiser,
We are writing to let you know that we’ll soon begin automatically transitioning the local business ads in your AdWords account. This email gives you an overview of the transition process and how you can enable location extensions, a new and improved way to run local ads and drive traffic to your stores.
What will happen to my account?
Over the next few weeks, any campaign containing local business ads will be automatically enabled with extensions using addresses from your local business ads. This means that any standard text ads in that campaign can show with one of your local business addresses when relevant to the user. You can visit our website to learn more.In addition, your local business ads will be replaced with new ads that are individually associated with an “address override” to ensure the same behavior as the local business ads they replace. While your text ads in the campaign can serve with any of your addresses, each transitioned local business ad is tied to a single address and will only show to users near that address.
Please be aware that ads with address overrides offer limited flexibility compared to location extensions. Since locations extensions offer many new functionalities in comparison to local business ads, we encourage you to upgrade to location extensions as soon as possible to enjoy the full benefits of this new feature. Visit our website for a step-by-step guide on how to convert your local business ads to location extensions before or after the automatic transition.
We are committed to the success of your local business and value your feedback throughout this transition. Please feel free to share any comments you have related to the process.
The Google AdWords Team"
In short, if you do nothing, the local business ads in your adwords account will be transitioned automatically to "location extensions" with address overrides. The address overrides act to limit the display of your ad to within a 10 mile radius of the ad address. This is the same behavior seen with your local business ad, but it's a better idea to just create a new extension, and then delete the transitioned ad with the override. This effectively removes the display limit for the ad. For businesses with multiple locations (in Google Places) it also makes the address displayed dynamic, so instead of multiple local business ads, you need just one locations extension in your Adwords campaign.
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