Location extension is used to guide people to the correct place. If it is present in the ad, people can just click on it and be guided straight to the location.
The advertiser gets charged if a user clicks on the extension.
If you have a Google My Business (GMB) account and you already have an address associated with this account then chances are that they are going to be adding in these extensions automatically and you will have to opt out in order to make sure that these extensions aren't automatically added in.
To add a location extension, go to your Google Ads dashboard and click “Ads and extensions” then click on “Extensions”.
Click and select “Location extension” from the drop–down menu.
Choose where you want it to be added.
Then choose the location source.
Don’t forget to hit “Save” when you’re done.