Google has recently put a new strategy and feature for their Gogle AdWords. It is called location extension, a feature so good advertisers of the AdWords can actually add dynamic addresses to their specific ads. These extension is accessible through your Local Business Account (LBC).
One you put an address to your ad, the searches done by people for shops, stores will automatically be related to their searches, your address and their address. This way you can get your advertisement on the AdWords 'localized'.
If you do not wish for a single location to be published on the searches, you can do so by manually inserting specific addresses. "For example, a clothing brand that distributes to a number of different stores might want to associate their ads with various store locations through extensions, even though their official business address doesn't correspond to those addresses.". - as explained in their Google blog.
With the introduction of local extension, Google AdWords' local business ads will no longer be of a different format. Those who already have a local business ad will still have their ads running as long as the owner of the account makes no changes with the ad.
"If you edit a local business ad, it will be converted to a text ad with the ad's address attached as a location extension. The new converted ad will look identical to the local business ad and will appear in the same places as your local business ads. AdWords Editor will continue to support the creation and management of local business ads, and we plan to launch Editor support for location extensions in a future release. For full details about editing local business ads in the new interface, please visit this Help Center entry."
Below is a video featuring Google's Local Business Center Introduction a few months ago.