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Google today announced on its Mobile Ads blog that it has launched location-aware display advertisements for mobile phones. Through Google’s “location extension” feature, advertisers can now include their location and phone numbers to appear in display ads on iPhone and Android mobile websites.

The feature, previously available only on search ads, will appear as banner text advertising and will pinpoint business locations on a small map as well as a “click-to-call” phone number. Consumers will also have the option for generate directions if needed.

Giving consumers the option of viewing businesses in their area increases Google’s chance that the consumer will call the business or click to its website, which are the two ways Google makes money on the service. The move shows Google’s increased investment in mobile and display advertising, two areas that have traditionally played second-fiddle to regular search advertising.

The location aware advertisements might be just what local businesses need as well. According to TechCrunch, “Google says that mobile ads that offer a location generally see an average 8 percent increase in click-through rates over plain-vanilla mobile ads, and click-to-call mobile ads see a 6 percent increase in clicks.”

Advertisers have to opt-in to the Google Ad Network and make sure they check the “Display Network” option. From there, the advertiser includes its number and address as well as the option to upload a logo. The last step is to check the box for iPhones and other mobile devices will full Internet browsers.

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