Optimising Local Campaigns: Using Google Business in Ads

Why Google Business and Google Ads belong together

Google processes over 8.5 billion searches per day - and a growing share of them has a local reference. According to Google, 46% of all searches contain local intent, such as "hairdresser near me" or "tax advisor Vienna" (Source: Google/Ipsos, Understanding Consumers' Local Search Behavior). Anyone running Google Ads as a local business without linking their Google Business Profile misses exactly these users.

The integration brings three central advantages:

• Location Assets in ads: Your business address, phone number and opening hours appear directly in the ad. That demonstrably raises the click-through rate by up to 10% compared to ads without location information.
• Local ad formats: Only with a linked GBP can you use Performance Max for Store Goals - the most powerful campaign type for local goals in 2026.
• Better data foundation: Google can measure store visits, local actions (calls, route requests) and offline conversions and optimise your campaigns on that basis.

Without this link, your campaigns simply lack the data signals Google needs for effective local delivery.

Linking Google Business Profile with Google Ads: step by step

The link is technically straightforward but requires the right permissions. You need owner rights or administrative access to both accounts - the Google Business Profile and the Google Ads account.

Check prerequisites

Before you start, make sure:

• Your Google Business Profile is fully completed and verified
• Opening hours, address, phone number and category are up to date
• You have at least admin rights in the Google Ads account
• Your GBP dashboard account and Ads account use the same Google account link (or you know the email address of the GBP owner)

Set up the link in Google Ads

1. Sign in to your Google Ads account

2. Navigate to Campaigns > Assets in the left menu

3. Click the plus sign (+) and choose** Location**

4. Choose Our locations and click** Next**

5. Click Link with a Business Profile dashboard account I know

6. Enter the email address of the Google Business Profile owner

7. After confirmation by the owner, your locations will be automatically synchronised

(Source: Google Ads Help - Create location assets)

Important: The link can take up to 24 hours. Location data from your Business Profile is then automatically taken over into Google Ads - including address, opening hours and phone number.

Linking via the Manager Account (MCC)

If you use a Google Ads Manager Account (MCC), you can set up the link centrally for multiple ad accounts. That's particularly practical for companies with multiple locations. The steps are identical, only that you make the link at MCC level and then assign the locations to the individual accounts.

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Understand location assets and use them correctly

With the successful link, you now have so-called Location Assets (previously: location extensions) at your disposal. Google changed the naming from "extensions" to "assets" in 2023 - the functionality however is identical.

What location assets show

Location Assets complement your text ads with:

• Business address with link to Google Maps
• Distance to the searcher (on mobile search)
• Phone number with click-to-call function
• Opening hours in real time (open/closed)
• Review stars from your Google Business Profile

This information doesn't appear in every delivery - Google decides dynamically when Location Assets are likely to improve ad performance. As a rule, they are shown for searches with clear local reference or for users in geographic proximity to your location.

Location Assets at campaign or account level

You can assign Location Assets at two levels:

• Account level: All campaigns can use the location data. Recommended as the baseline.
• Campaign level: Specific locations are only assigned to certain campaigns. Sensible when you have multiple branches and run location-specific campaigns.

For most local businesses with one or few locations, assignment at account level is sufficient.

Performance Max for Store Goals: the campaign type for local advertising

Since Google transitioned the classic Local Campaigns into Performance Max in 2023, "Performance Max for Store Goals" is the central campaign type for location-based advertising. In 2026, Google has further expanded this campaign type - among other things with extended inventory on Waze and improved channel reporting (Source: Google Ads Help - Performance Max Campaigns).

How Performance Max for Store Goals works

This campaign type uses Google AI to deliver your ads across channels:

• Google Search (including Maps results)
• Google Maps directly
• YouTube
• Google Display Network
• Gmail
• Google Discover

You deliver Google three inputs: your locations (via the GBP link), your budget and your ad assets (copy, images, videos). Google then automatically optimises bids, placements and asset combinations for maximum local performance.

Choose campaign goals

Performance Max for Store Goals offers three optimisation goals:

For most local businesses in the DACH region, "Local actions" is the most pragmatic starting point, since store visits require a high minimum number of conversions that smaller businesses rarely reach.

Assets for local Performance Max campaigns

For Google AI to work optimally, you should provide the following assets:

• At least 5 text ad titles (max. 30 characters) with local reference
• At least 5 descriptions (max. 90 characters)
• At least 5 images in various formats (landscape, square, portrait)
• At least 1 video (ideally 15-30 seconds) - if no video is available, Google automatically creates one from your images and copy
• Logo in high resolution
• Call-to-action fitting the business goal

Practical tip: Use the place name or region in your text ad titles. "Tax consultancy Graz" or "Dentist 1010 Vienna" perform significantly better in local campaigns than generic titles like "Professional advice".

Bidding strategies for local campaigns

The choice of the right bidding strategy is decisive for the success of your local campaigns. In Performance Max campaigns, two primary strategies are available.

Maximise Conversions

This strategy is suitable when you want to achieve as many local actions (calls, route requests, contact requests) as possible and don't yet have a sufficient data base for a Target CPA. Google deploys your entire daily budget to achieve the maximum number of conversions.

Recommendation: Start with "Maximise Conversions" and collect at least 30-50 conversions over a period of 2-4 weeks before switching to a CPA-based strategy.

Target CPA (Cost per Acquisition)

Once enough conversion data is available, you can set a Target CPA. Google then optimises for conversions within your defined cost limit. For local campaigns that means: you define how much a call, a route request or a store visit is worth to you.

Sample calculation for a local service provider:

• Average order value: €500
• Close rate from enquiries: 25%
• Maximum CPA: €500 × 25% = €125 per qualified enquiry
• Recommended Target CPA in Google Ads: €80-100 (with safety buffer)

Bid adjustments by location

Regardless of the campaign type, in Google Ads you can make bid adjustments for specific geographic areas. For local campaigns that means:

• Increase bids in the direct catchment area (e.g. +20% within a 10 km radius)
• Reduce bids in more distant areas or exclude them
• Use postcode-based targeting for precise geographic control

These adjustments are particularly effective in combination with Location Assets, as Google then aligns both the ad extension and the bid adjustment to the user's location.

Local search ads on Google Maps

An often overlooked but extremely valuable placement location for local ads is Google Maps. If your Google Business Profile is linked with Google Ads and you have Location Assets activated, your ads can appear directly in Google Maps.

Where your ads appear on Maps

Local search ads on Google Maps are delivered in prominent positions:

• Above the organic Maps results for relevant searches
• In the map view as a highlighted pin
• In the detail view when users click your listing

These placements are particularly valuable because users on Google Maps have high buying intent. Those searching on Maps for "Restaurant nearby" want to make a decision in the next minutes or hours.

Optimise Maps ads

For your Maps ads to perform optimally:

• Keep your Google Business Profile up to date: Current photos, complete opening hours, correct category
• Collect reviews: Businesses with more than 50 reviews and an average rating above 4.0 receive significantly more clicks on Maps ads
• Use promotion extensions: Promotions and special offers from your GBP are prominently displayed in Maps ads
• Optimise your business description in the GBP with relevant keywords - these feed into the relevance rating for Maps ads

Set up Conversion Tracking for local campaigns

Without clean tracking, you're flying blind. Local campaigns require an extended conversion setup that goes beyond classic website conversions.

Which conversions you should track

Configure call tracking correctly

For local businesses, phone calls are often the most valuable conversion. Google Ads offers two options:

Calls directly from the ad: Are automatically tracked when you use a call extension or Location Assets with phone number. Here you can also define a minimum call duration (e.g. 60 seconds) to distinguish quality calls from accidental clicks.

Calls from the website: Require a Google Forwarding Number that's shown on your website when the visitor came via a Google Ads ad. That way you can trace the entire conversion path - from ad click to phone call.

Import offline conversions

For companies that close deals in the shop or by phone, importing offline conversions is decisive. That way you close the gap between online click and offline close:

1. At every close, capture the Google Click ID (GCLID) - this is automatically appended to the target URL

2. Regularly (at least weekly) import your close data with the associated GCLID into Google Ads

3. Google can then assign the conversion to the original click and optimise your campaigns on that

This step is ignored by most local businesses - yet it's one of the biggest levers for campaign optimisation.

Audience signals for local campaigns

In Performance Max campaigns you can't apply classic audience restrictions - instead you work with audience signals. These help Google AI identify the right users faster.

Effective audience signals for local advertising

• Custom segments: Create segments based on search terms your audience uses. For a dentist that could be terms like "dentist appointment", "toothache", "dental cleaning cost".
• Interests and purchase intentions: Choose Google categories that fit your business. Google knows user purchase intent through search behaviour, YouTube consumption and app usage.
• Your data (first-party): Upload customer lists so Google finds similar users in your catchment area. Particularly valuable are lists of existing customers with high lifetime value.
• Website visitors: Create remarketing lists of users who have visited your website but didn't convert. Combined with local targeting, you reach these users again when they are in your catchment area.

Important: Audience signals are not hard restrictions in Performance Max. Google uses them as a starting point but extends delivery to further relevant users. That's why geographic targeting (location targeting) is the more important lever for local campaigns.

Set geographic targeting precisely

Location targeting is the most important lever for local campaigns. A common mistake: the default setting "People in your target regions or interested in them" is too broad for local campaigns.

Recommended setting for local campaigns

Change the targeting option to "People in your target regions or who are regularly there". That excludes users who are interested in your region (e.g. tourists planning a trip) but aren't physically on site.

Define the catchment area

For defining your catchment area, several options are available:

• Radius targeting: Define a radius around your location (e.g. 15 km). Ideal for service providers with a fixed catchment area.
• Postcode targeting: Choose specific postcodes. Enables precise targeting and differentiated bid adjustments per area.
• City/region targeting: Choose entire cities or federal states. Suitable for supra-regional local campaigns.

Practical tip: Create separate campaigns or ad groups for different distance zones. Example for a tradesperson in Salzburg:

• Zone 1 (0-10 km): Core area, highest bids
• Zone 2 (10-25 km): Extended area, moderate bids
• Zone 3 (25-50 km): Only for certain services with higher order value

Optimise ad copy for local campaigns

Local ad copy follows different rules than generic text ads. The local reference must be immediately recognisable.

Best practices for local ad titles

• Use place names: "Dentist Vienna 1030" or "Roofer Innsbruck"
• Emphasise local USPs: "In Graz since 1987" or "Your partner in Vorarlberg"
• Signal availability: "Appointments still available today" or "24/7 emergency service in Linz"
• Communicate distance: "5 min from main station" or "Right on Rathausplatz"

Dynamic location insertion

Google Ads offers the option to dynamically insert the location into ad copy. With the parameter {LOCATION(City)} the user's city is automatically inserted. That works particularly well for companies with multiple locations:

"Book an appointment in {LOCATION(City)} now"

becomes "Book an appointment in Vienna now" or "Book an appointment in Graz now" - depending on where the user is searching.

Local ad assets: more than just text

Alongside Location Assets, Google Ads offers further asset types that strengthen local campaigns.

Call assets

Show your phone number directly in the ad. On mobile devices, users can call with a tap. For local businesses where phone enquiries are the primary conversion channel, this asset is mandatory.

Sitelink assets with local reference

Link to location-specific subpages:

• "Directions & parking"
• "Our opening hours"
• "Team at the Vienna location"
• "Current offers on site"

Image assets

In 2026, Google increasingly prioritises visually enriched ads. Upload high-quality images of your business, your team or your products. Authentic shots perform particularly well - not generic stock photos.

Promotion assets

Highlight local promotions: "20% off initial consultation in Klagenfurt" or "Free call-out in the Salzburg area". Promotion assets demonstrably raise the click-through rate because they communicate concrete added value.

Success measurement: the right KPIs for local campaigns

Local campaigns require a different KPI set than classic e-commerce campaigns. The focus shifts from online revenue to offline interactions.

Primary KPIs

• Cost per Local Action (CPLA): Cost per local action (call, route request, website visit). The most important KPI for local campaigns.
• Store Visit Rate: Share of ad clicks that lead to a physical store visit. Only available with sufficient volume.
• Call quality: Share of calls over a defined minimum duration (e.g. 60 seconds). Distinguishes real enquiries from misdials.
• Click-to-call rate: Share of impressions that lead to a call. Shows how relevant your ad is for users with call intent.

Secondary KPIs

• Local impression share: How often your ads appear in the defined catchment area in relation to total demand. Shows untapped potential.
• Maps interactions: Clicks on the Maps pin, route requests, profile views.
• Average distance: At what average distance users interact with your ads. Helps with catchment area optimisation.

Reporting tips

Set up monthly reporting that shows these KPIs over time. Pay particular attention to seasonal fluctuations - local demand often varies more than online demand, because weather, holidays and local events have a direct influence.

Common mistakes in local Google Ads campaigns

Practice shows the same mistakes over and over again that slow down local campaigns.

Mistake 1: Google Business Profile not maintained

The integration only works as well as the data source. A GBP with wrong opening hours, missing photos or outdated phone number actively harms your campaigns. Google uses this data for Location Assets - wrong information leads to poor user experience and lower ad quality.

Solution: Check your GBP at least monthly. Update photos quarterly. Respond to new reviews within 48 hours.

Mistake 2: Geographic targeting too broad

Many local campaigns target entire federal states or countries, although the catchment area is only 20 km. That wastes budget on clicks from users who will never visit your business.

Solution: Define a realistic catchment area based on your actual customer data. Where do your customers come from? How far do they travel for your service?

Mistake 3: No separate call tracking

When phone calls are an important conversion channel (and they are for most local businesses) but are not tracked, Google lacks the data base for sensible optimisation.

Solution: Set up call tracking - at least for calls from the ad, ideally also for calls from the website.

Mistake 4: Only one campaign for all locations

Companies with multiple locations often pack all branches into one campaign. That prevents location-specific budgeting and evaluation.

Solution: Create separate campaigns or at least separate ad groups per location. That way you can control budget, bids and ad copy individually.

Mistake 5: Neglecting mobile users

Over 60% of local searches happen on mobile devices. Yet many companies optimise their landing pages and ads primarily for desktop.

Solution: Check your landing page for mobile load time (under 3 seconds), click-to-call function and mobile map integration. Increase your bid adjustment for mobile devices if necessary.

Checklist: local Google Ads campaign in 10 steps

Use this checklist as a basis for building or optimising your local campaigns:

1. ✅ Fully complete and verify Google Business Profile

2. ✅ Link GBP with Google Ads (activate Location Assets)

3. ✅ Narrow geographic targeting to catchment area

4. ✅ Change targeting option to "People in your target regions"

5. ✅ Set up call tracking (ad + website)

6. ✅ Create Performance Max for Store Goals

7. ✅ Write local ad copy with place reference

8. ✅ Upload high-quality images and videos as assets

9. ✅ Create audience signals with local search terms

10. ✅ Set up monthly reporting with local KPIs

Advanced strategies for 2026

Local inventory and e-commerce integration

In 2026, Google further expanded the integration of Google Business Profile with e-commerce tools and Local Service Ads. Customers can see local inventory directly in the search results, make purchases or book services - without leaving Google Search (Source: OAK Interactive - Google Business Profile Updates 2026).

For local retailers that means: if you maintain your product catalogue in Google Merchant Center and link it with your GBP, your products can appear with availability display directly in Maps and local search.

AI-driven ad optimisation

In 2026, Performance Max relies more heavily on AI-generated ad assets. Google automatically creates copy variants, image suggestions and even video ads based on your existing assets and your Google Business Profile. You should regularly review these automatically generated assets and replace them if necessary - the AI quality is good but not perfect, especially with industry-specific vocabulary.

Waze integration (outlook)

At the end of 2025, Google announced it would extend the Waze inventory for Performance Max for Store Goals to further markets outside the US. For the DACH region that potentially means a further placement option for local ads - directly in the navigation app, when users are on the move near your location.

Frequently asked questions (FAQ)