Google has came up with a new way to run local ads in the new AdWords interface. It's called Location Extensions that allow advertisers or business owners to extend their AdWords campaigns by dynamically attaching their business addresses to the ads.
Primary business owners can set up Local Business Center (LBC) account. Those who are not the primary business owners of the locations they are advertising can manually enter addresses directly into AdWords. When extensions are set up, Google will dynamically match the locations to the user's location or search terms and show relevant addresses with the text ads. If Google fails to determine a user's location or if it does not find relevant addresses to show, it will show the business owner's ad without an address.
Business owners also enjoys the option not to consider dynamically match addresses to their ads. They can simply choose a particular address to show with one particular ad, and they can do this just by setting up specific location extensions for individual ads . The ads can be shown on Google and Google maps with their relevant extensions and as regular text ads on search and content partner sites.
To learn more about location extensions, check out the location extensions overview section at the Help Center for the new AdWords interface.