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Local Inventory Ads Become Default on August 31

Google is changing the rules for product advertising: Local Inventory Ads (LIAs) will become the default setting for eligible Shopping campaigns. The change takes effect on August 31, 2026 — advertisers should review and update their campaigns before that date.
Local Inventory Ads show a product tied to its availability in a specific nearby store — with price, address and shelf stock. For retailers with physical locations it's a key format that drives people from search straight into the store.
According to Search Engine Land, LIAs will switch on automatically for accounts that have the Local Inventory Ads add-on enabled in Merchant Center. At the same time, Google is removing the separate "Local products" setting and replacing it with a new Inventory filter.
What changes in practice:
- LIAs on by default. Standard Shopping campaigns linked to a Merchant Center account with the add-on active will start showing local ads automatically.
- New Inventory filter. Instead of "Local products", you'll set a channel: "Channel = Local" or "Channel = Online".
- Deadline — August 31, 2026. After that date the old settings logic stops working.
- Who's affected. Accounts with the LIA add-on and standard Shopping campaigns.
Google frames the move as removing duplicate settings that previously controlled Local Inventory Ads and simplifying campaign management.
What this means for business. If you run separate budgets for online and in-store inventory, don't wait for the deadline: check the Inventory filter early, or campaigns will start mixing local and online traffic. For stores with physical locations it's a win — local ads with in-store availability get more reach without manual setup. If you sell online only, make sure the channel is set to "Online" so you don't pay for irrelevant local impressions.


