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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.
It's a bit ironic that a setting which used to require manual activation is now becoming the default. For businesses running separate budgets for online and in-store inventory, this changes the calculus: the Inventory filter will decide whether local and online traffic get mixed into one campaign. Retailers with physical locations come out ahead — local ads with in-store availability get more reach without manual setup. Online-only sellers risk burning budget on irrelevant local impressions if the channel defaults to local.


