Local Inventory Ads: Google changes default
Google is fundamentally changing how Local Inventory Ads are managed in Standard Shopping campaigns. Going forward, Local Inventory Ads will be enabled by default for eligible campaigns, and the previous “Local products” setting will be removed. Advertisers will instead control local and online inventory through the Inventory filter. The deadline is August 31.
What is changing in Shopping campaigns
Google has notified advertisers that Local Inventory Ads (LIAs) will be enabled by default beginning August 31 — provided Shopping campaigns are linked to Merchant Center accounts with the Local Inventory Ads add-on enabled. Local inventory delivery thus becomes the default experience for all eligible campaigns.
As part of the update, Google is removing the “Local products” setting under other campaign settings. Control moves entirely to the Inventory filter. Campaigns can be configured there using Channel = Local or Channel = Online. Duplicate and overlapping controls are intended to disappear.
Why the change matters for advertisers
Many teams deliberately separate budgets and strategies for online and in-store inventory. If Local Inventory Ads are automatically active and the old setting disappears, campaign behavior can change — including delivery, bid allocation, and costs. Anyone who does not review settings before the deadline risks having local and online inventory mixed unintentionally in delivery or budgets.
At the same time, Google is simplifying configuration: instead of parallel switches, there is one central control via the Inventory filter. That reduces misconfiguration but requires a deliberate decision on how channel values should be set. For merchants with omnichannel models, this is especially important because search visibility is tightly linked to local availability.
What Google aims to achieve with consolidation
According to Google, duplicate settings that previously controlled Local Inventory Ads in parallel should be removed. Consolidation under the Inventory filter is meant to clarify campaign management and establish Local Inventory Ads as the default for eligible Shopping campaigns. For performance teams, that means fewer legacy options but more responsibility to define filter logic correctly before rollout.
Action items before August 31
Advertisers running Shopping campaigns with an active Local Inventory Ads add-on in Merchant Center should review their campaigns systematically now. First, audit all linked accounts and campaigns where local products are or could be served. Next, decide whether online and local inventory should still be budgeted and controlled separately.
- Identify campaigns linked to Merchant Center with the LIA add-on
- Check whether “Local products” was previously used or deliberately disabled
- Set the Inventory filter to Channel = Local or Channel = Online if separate strategies are required
- Adjust budgets, bidding strategies, and reporting for possible mixing of online and store inventory
- Inform teams and agencies about the deadline and the new default logic
Anyone who wants to keep separate budgets for online and store inventory must configure the Inventory filter actively and correctly. Without adjustment, the new default activation of Local Inventory Ads can break existing separations. This is especially critical for retailers with regionally different margins, store stock levels, or local promotion logic.
Impact on local search and omnichannel
Local Inventory Ads connect search intent with local availability: users see products that are in stock at nearby stores. If this channel becomes the default, the chance of near-store visibility rises — and so does pressure for clean product data, store feeds, and inventory sync. Faulty local inventory data can then reach delivery faster and distort conversion expectations.
For SEO and SEA teams, the overlap matters: organic local SEO signals, Google Business Profile, and paid Local Inventory Ads all address the same local demand. Clearer ads control via channel filters helps align paid and local visibility — provided campaign logic is updated before the deadline.
Practical check for reporting and governance
Beyond the setting itself, teams should review reporting structures. If channel values take over control, dashboards and alerts must be updated accordingly. Otherwise, shifts in cost, clicks, and store visits stay invisible. Approval processes in agencies and in-house teams should also document the Inventory filter as the new standard so old playbooks with the “Local products” setting do not keep running.
The change was first highlighted by PPC specialist Arpan Banerjee, who shared the notification email sent to affected Google Ads manager accounts on LinkedIn. That underlines how important it is to catch Ads ecosystem product updates early and implement them operationally — before defaults quietly change campaign behavior.
What advertisers should prioritize now
Priority one is the deadline: before August 31, all affected Shopping campaigns must be reviewed and, where needed, realigned via the Inventory filter. Priority two is the strategic decision whether Local Inventory Ads should deliberately run as the default or whether channel filters should keep online and local separated. Priority three is data quality in Merchant Center, because local delivery stands or falls with correct inventory and location data.
By removing the legacy “Local products” setting, Google makes Local Inventory Ads the default in eligible Shopping campaigns. Advertisers who run separate online and store strategies should update campaign settings in time. That way they keep control over budget, channel, and local visibility while the platform moves to more unified inventory management.
