Google Ads

How To Set Up Local Inventory Ads

What can you do to make sure that you attract in-store and eCommerce shoppers if you have a brick and mortar store? You take the help of Local Inventory Ads.

Local inventory ads help in showcasing products as well as the store’s information to nearby potential shoppers searching on Google. As soon as they click your ad, they land on a Google-hosted page for your store, also known as the Local Storefront.

If these shoppers don’t get to know that the products they are looking for are available in your store or nearby, there’s a high chance that they’ll just turn to any other eCommerce giants like Amazon.

This way the Local Inventory ads help direct this traffic towards your website instead by showing in-store inventory, providing store operating hours, and directions to reach you. Local Inventory ads are currently available in selected countries (listed below) as long as they have a brick-and-mortar store.

  •  Australia
  • Austria
  • Brazil
  • Canada
  • Denmark
  • France
  • Germany
  • Japan
  • Netherlands
  • Norway
  • Sweden
  • Switzerland
  • United Kingdom
  • United States

How to enable Local Inventory Ads

Once you meet the requirements of having a physical address and brick-and-mortar store in an eligible country and selling physical goods that the customers can also purchase by visiting the store, you can proceed with the ads setup. Also, you should be committed to protecting personally identifiable information (PII) of your customers.

Getting started:

  • Set up accounts on Google Merchant Center, Google My Business and Google Ads
  • In the Merchant Center, go to Growth >> Manage Programs, on the local inventory ads program card, click “Get started.”
  • When you are sure that you meet all the requirements, click “Enable.”
  • On next step, click plus (+) button and choose the country where store/stores are located
  • Upload your product feed and create local product inventory feed. The product attributes will vary according to product types but it must have an id, price, quantity, and store code attributes.

Once you register and upload your feeds, you will have a store visit from one of Google’s representatives who will verify your store’s inventory. The last step will be to enable Local ads in the shopping campaign.

Benefits of Local Inventory Ads

LIAs are a unique way of advertising for people who own brick-and-mortar shops. Their highlights offer local retail store owners a chance to use their closeness to clients and drive pedestrians to the store.

 The idea of buying locally is not just limited to benefitting shoppers as they can save a lot of time but it gives optimal power and opportunity to local shops to compete with online retail giants. As a fact, local inventory ads are an ideal approach to help boost local trade.

LIAs also come to rescue for those shoppers who usually search for products and items online but prefer to step out and visit their local shops to make the final purchases.

Since they can be certain their visit won’t go in vain as the item is available in the store. They can feel or check the  desired product in real before purchasing it which they definitely can’t do while shopping online.


Local inventory ads are the perfect solution for retailers to fulfill the demand of consumers who are looking to buy a particular product in a particular area and within a specific period. LIAs help local businesses to have the complete attention of local customers.  

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How To Use Local Inventory Ads

According to a marketing report, 38% of holiday shoppers use smartphones to search for products and service information on Google before visiting a store. 

Google shopping ads offer online marketers and e-retailers an excellent platform to showcase their products, reach out to their audience, and build brand visibility. So let’s start with Local Inventory ads or LIA, LIA are the local information users ask for. 

We also know that 44% of shoppers wish that retailers could do a better job sharing inventory information, well the good news is LA or LIA actually do help retailers provide this information to customers and when they do the retailers themselves see an upside so where local inventory information was provided in the US retailers actually saw 3 times increase in the CTR and an 80% improvement in CPA. 

So our recommendation to you is to use local inventory ads to drive increased ad engagement clicks as well as store visits which are a really special and important piece here and then take advantage of that local location-based targeting feature to really drive performance to specific stores.

So how does LIA work?

As you search for something in the Google Search Bar like a Fitbit in your body, Google will display results of stores that are selling the Fitbit with distance from your location, opening hours, and price. 

If you click right there on this ad you will be navigated to a Google-hosted storefront, this it pulls information from the retailers feed Merchant Center feed actually.

Who should Use LIA?

  1. Retailers who have separate online & offline merchandising and marketing teams
  2. Have separate offline budgets and success KPIs
  3. Have a strong in-store assortment
  4. A retailer who rely on auto-bidding tools for their online campaigns 

How to Setup LIA’s?

  1. Startup a new shopping campaign supporting all categories and then within settings you will have to enable the local inventory ads through a feature called enable local inventory ads. Moreover, you need to set up an inventory filter for the channel.
  2. Next thing is to do the bidding, don’t select conversions as a goal for LIA, here opt-in for maximizing clicks bidding strategy.

LIA Campaign Strategy Tips 

  • Local only is the preferred setup for departments funding drive-to-store separate from e-comm programs as they can control, optimize & report on performance separate from the e-comm program.
  • Set a 20% higher base bid than your average Google Shopping bid, and adjust the mobile bid modifiers to +100% to drive store visits. Separate campaigns help optimize these specific goals.
  • Mirror programs that are happening in-store to make the most of LIA/Local Campaign. For example – bid up on seasonal items featured in stores, end caps, or in the circular. Some advertisers use LIA to drive inventory relief (bidding up on certain stores or on certain inventory)

Example of Interpreting Store Visit Data :

Online Spend  = $1000

Store Visits = 100

In-store Conversion Rate  = 50% (Assumed)

In-store AOV = $100 (Assumed)

In-store Sales = $5,000

ROAS = 5:1


LIA Campaign Optimizing Tips 


Bid Higher to reach shoppers closer to your location

Location-based bid modifiers help merchants to increase bids for shoppers closest to their stores.

Increase bids when stores are open

Ad scheduling bid modifiers allow merchants to bid higher during store open hours or high traffic hours.

But don’t “turn off” when your stores are closed because late night/ early morning LIAs help drive shoppers planning their route in advance.

Bid higher by Device

Merchants can boost their bids on the device (Computer, Tablet, and mobile)

As LIA is a mobile-first ad format, we recommend store mobile bid modifiers of at least 100% to start out.

Final Words

Local inventory ads don’t cost any more than regular shopping campaigns, as today most of the searches are shifting from desktop to mobile and consumers grow continually more reliant on Google to guide their purchase, LIAs can help ensure they will find you -online or nearby.