Starting August 31, Shopping campaigns with eligible Merchant Center accounts will have Local Inventory Ads enabled by default. Advertisers must update settings to maintain separate budgets for online and in-store products.
Google is set to overhaul how Local Inventory Ads (LIAs) are managed in Standard Shopping campaigns, making them the default option for eligible advertisers beginning August 31. The update will automatically activate LIAs in Shopping campaigns connected to Merchant Center accounts that have the Local Inventory Ads add-on enabled, according to notifications sent to advertisers.
With this change, Google will retire the “Local products” setting found under Other settings. Instead, advertisers will now use a new Inventory filter to control how their campaigns target local or online inventory. The filter allows configuration by Channel, letting advertisers specify either Local or Online inventory for each campaign.
This shift is designed to streamline campaign management by removing overlapping controls and consolidating inventory targeting under a single filter. Google says the move aims to simplify the process and reduce confusion, as previously both the “Local products” setting and Inventory filter could impact how LIAs were served.
Advertisers who currently allocate separate budgets for online and in-store inventory should review their campaign settings before the August deadline. To maintain distinct strategies, they will need to update the Inventory filter to target Channel = Local or Channel = Online as needed. Failing to do so could result in campaigns serving ads for both inventory types, potentially impacting budget allocation and performance.
The change was first brought to light by PPC specialist Arpan Banerjee, who shared Google’s notification email with affected Google Ads manager accounts on LinkedIn. The update reflects Google’s ongoing efforts to centralize and automate campaign controls within its advertising ecosystem. For context, the evolving landscape of AI-driven ad products has also led to shifting revenue forecasts, as seen in recent projections for chatbot advertising markets such as those discussed in this analysis of ChatGPT ad revenue forecasts.
Advertisers using Shopping campaigns with the Local Inventory Ads add-on are advised to audit their campaigns and adjust the Inventory filter before August 31 to ensure their budget and targeting strategies remain aligned with business goals.
