Local Inventory Ads: what they are, how they work and how to set them up on Google

Every day, millions of consumers search Google for products they can buy nearby. Queries like "running shoes near me" or "washing machine available in store today" are increasingly common — and behind many of them lies a clear intent: to walk into a physical store within the next few hours. According to Google, 28% of local searches result in a store visit within 24 hours.  For retailers with physical locations, the challenge is clear: how do you get found at the exact moment a potential customer is searching for a product you have in stock?  The answer is Local Inventory Ads (LIA) — a Google advertising format designed to connect online searchers with offline sellers. In this guide, we'll cover what they are, why they can make a real difference for brick-and-mortar businesses, and how to set them up step by step in Google Merchant Center and Google Ads. 

1. What are Local Inventory Ads?

Local Inventory Ads are Shopping ads that Google shows to nearby users when they search for products available at a physical store. Unlike standard Shopping ads — designed to drive online sales — LIAs are built to generate in-store foot traffic, or to promote click-and-collect purchases (the BOPIS model: Buy Online, Pick Up In Store).  Visually, LIAs are recognisable by specific labels displayed alongside the product: 

• "In store" 

• "Pick up today" 

• "Nearby" 

When a user clicks on the ad, they are taken to a page — called a storefront — showing store-specific information: product availability, price, opening hours, address and directions. 

Where do Local Inventory Ads appear?

LIAs can appear across multiple Google surfaces: 

• Google Search results — in the featured Shopping tab or dedicated column 

• Google Shopping — the dedicated product ad section 

• Google Maps — when a user searches for a product on the map 

• Google Images search results 

Geolocation is central to how LIAs work: Google shows them to users who are physically close to the store, or who have demonstrated relevant interest in that geographic area. 

Local Inventory Ads vs Standard Google Shopping: key differences

Both ad di types often coexist in a retailer's dei campaigns, but they obiettivi and meccanismi distinti. Ecco un confronto diretto:

• Goal: standard Shopping Ads aim to generate online sales, while Local Inventory Ads are specifically designed to bring customers into a physical store

• Targeting: traditional campaigns rely on keywords and audiences; LIAs leverage the user's geographic proximity to the store, making ads relevant only to those who are genuinely nearby

• Landing page: after a click, standard Shopping Ads direct users to a product page on the e-commerce site, while LIAs take the user to a Google Storefront or a merchant's local page with store-specific details

• Labels: Local Inventory Ads display exclusive badges such as "In store" and "Pick up today", which are entirely absent from standard Shopping campaigns

• Feed required: LIAs require an additional feed on top of the Primary product feed — the Local Product Inventory Feed — which certifies the actual availability of products in each physical location

• Google verification: unlike standard Shopping Ads, LIAs require a physical inventory verification by Google before they can go live

In short, Local Inventory Ads are the ideal tool for retailers with physical stores who want to connect their digital and physical channels, while standard Shopping Ads remain the go-to solution for pure e-commerce or purely online strategies. 

Reaching the right audience

One of the most powerful aspects of Local Inventory Ads is their ability to intercept users with immediate, local purchase intent. Someone searching for a product with queries like "near me" or "available today" isn't just browsing — they're about to buy. LIAs are built precisely for that moment. 

 

To make the most of this, it's essential to work on two levels. The first is geographic targeting: setting location parameters so that ads are shown only in areas covered by your physical stores, and adjusting bids based on the user's distance from the store. The second level is audience segmentation: refining your audience based on demographic data, interests and purchasing behaviours to increase ad relevance and, consequently, conversion rates. 

 

Timing is another often-overlooked factor. Identifying the hours and days with the highest in-store traffic — and increasing bids during those windows — allows you to concentrate budget when users are most likely to act. Similarly, allocating higher budgets to the most profitable or fast-moving products helps maximise return on ad spend, while leaving lower-margin items on more conservative strategies. 

2. Why use Local Inventory Ads: benefits and use cases

According to Google, more than 50% of shoppers research a product online before visiting a physical store. Local Inventory Ads intercept exactly this moment: when the user is still deciding where to buy, and local availability can be the deciding factor between a won physical sale and one lost to an online marketplace.  For retailers with physical stores, the benefits are concrete: 

• Reaching users during local search, when purchase intent is high and geographic proximity becomes a key deciding factor 

• Competing with major marketplaces on ground where they have little advantage: immediate availability and physical closeness to the customer 

• Driving value from in-store stock, helping to reduce excess inventory and maximise sell-through rates 

• Delivering a consistent omnichannel experience, where digital and physical channels complement rather than compete with each other 

• Supporting the BOPIS model (Buy Online, Pick Up In Store), increasingly sought by consumers for convenience and speed 

• Improving overall ROAS: LIA campaigns generate an average omnichannel ROAS 15–21% higher than standard Shopping Ads alone, thanks to the combination of online traffic and physical conversions

• Increasing SERP visibility, appearing prominently not only in standard product searches but also in "near me" queries and on Google Maps, where immediate purchase intent is at its highest

Results in numbers

Optical retail and luxury eyewear — Omnichannel integration at scale 

A major luxury eyewear retailer faced a common but far from simple challenge: maximising return on ad spend by effectively connecting their online presence with their physical stores. Through Highstreet.iothe brand integrated Local Inventory Ads with existing Google Shopping campaigns, also introducing advanced features such as the "deferred pickup" badge for products not immediately available in store — allowing the full catalogue to be promoted without limitations. The results validated the strategy: +15% online traffic, +70% click-and-collect orders and a +124% year-on-year increase in ship-to-store transactions. 

 

Fashion luxury — Drive-to-store for a high-end fashion brand 

An international luxury fashion brand wanted to convert its digital presence into real foot traffic to physical stores, leveraging the click-and-collect service already active on its website. Highstreet.io made it possible to integrate BOPIS functionality — buy online, pick up in store — directly within Shopping campaigns, powered by an automatic feed with real-time product availability. The comparison with standard Shopping campaigns was clear: the in-store visit rate doubled, with a cost per click 10% lower than activity running without Local Inventory Ads. 

3. Requirements to activate Local Inventory Ads

Before starting the setup, it's important verify that your business meets i requisiti richiesti da Google per poter utilizzare le LIA.

Business Requirements

• Have at least one physical store open to the public and accessible without any additional purchase requirement 

• Operate in one of the countries where LIAs are available, including Italy, France, Germany, Spain, the United Kingdom, the United States, Canada, Australia and Japan. The updated list can be found in the official Google Merchant Center documentation 

• Comply with Google Shopping policies regarding products, pricing and business information 

• Never include customer personal data (PII) in feeds: names, email addresses, phone numbers, loyalty codes or any individually identifiable information must never be transmitted to Google as part of LIA activity

Required accounts and tools

Three Google accounts are needed to run Local Inventory Ads, all linked together. Each plays a specific role:  

1. Google Merchant Centerthe "warehouse" from which Google retrieves product and local inventory information. The Local Inventory feature must be enabled. 

2. Google Business Profilecontains physical store information: address, opening hours, contact details. Must be verified and linked to Merchant Center. It's essential that data is accurate and kept up to date. 

3. Google Adsthe platform used to manage campaigns and budgets. LIAs are activated within Shopping or Performance Max campaigns. 

 If any of the three accounts is not yet active or linked, this step must be completed before proceeding with the LIA setup.

4. How to set up Local Inventory Ads: step-by-step guide

Step 1 — Link Google Business Profile, Merchant Center and Google Ads

The first step is ensuring all three accounts are connected. From the Google Merchant Center dashboard: 

• Go to Settings → Linked accounts 

• Link your Google Business Profile by selecting the location or locations that will participate in LIAs 

• Link your Google Ads account via customer ID 

If you manage multiple locations, make sure each one is present and verified in the Business Profile with a complete and up-to-date address, opening hours and contact details.

Step 2 — Enable Local Inventory Ads in Google Merchant Center

Once accounts are linked: 

• Go to Growth → Manage programs in Merchant Center 

• Select "Local inventory ads" and click Get started 

• Enter the required information: store name, address, contact details 

• Select the country where your stores are located

Step 3 — Choose your landing page type

One of the most important — and often underestimated — decisions is the choice of landing page. Google offers three options, with increasing levels of complexity and control:  

• Google-Hosted Local Storefront (GHLS) — the simplest option 

Google creates and hosts the product page on behalf of the merchant. Ideal for those without per-store availability pages on their own website. The downside is that the user stays within the Google ecosystem rather than landing on the merchant's site. 

• Merchant-Managed Basic — intermediate control 

The merchant manages the landing page, which shows per-store product availability. Requires development on the site side, but allows for greater consistency with the e-commerce experience. 

• Merchant-Managed Full — advanced option 

The most complete version: prices and availability specific to each individual store. Suitable for chains with multiple locations and differentiated pricing policies.  For most retailers approaching LIAs for the first time, the Google-Hosted Local Storefront is the recommended starting point. Migration to merchant-managed options is possible at a later stage, once campaign performance has been validated. 

 

Custom Landing Pages with Highstreet.io — the exclusive option

There is a fourth level, reserved for those working with Highstreet.io: the creation of fully customised landing pages, hosted on the merchant's own domain and designed to maximise local engagement. These aren't simply availability pages — Highstreet.io develops tailored experiences with conversion-optimised layouts, advanced features such as pickup options, appointment booking and scheduled pickup, plus flexible CTAs configurable to the specific needs of each retailer. The result is a local shopping experience that is coherent with the brand, increases SERP visibility, improves engagement from local users and directly contributes to growing in-store sales — while reducing logistical costs associated with long-distance shipping. A capability that is rarely found elsewhere, and one of the most distinctive advantages of the platform.

Step 4 — Upload the Primary Product Feed

The Primary Product Feed is the feed already used for standard Shopping campaigns : it contains general product information (ID, title, description, price, images, URL). If you already have an active Shopping feed, in many cases no new feed needs to be created — simply verify the presence of the key attributes: 

• id — unique product identifier 

• title — clear and descriptive title 

• price — selling price 

• availability — general product availability (not local: that goes in the separate feed) 

• link — product page URL 

• image_link — main image URL

Step 5 — Create and upload the Local Product Inventory Feed

This is the LIA-specific feed and the most technically critical point of the entire setup. The Local Product Inventory Feed contains availability and price information for each product in each individual store. Unlike the Primary Feed, it must be updated frequently to accurately reflect real stock levels.  Required attributes: 

• store_code — the physical store code (must match exactly the code in the Business Profile) 

• id — the product ID (must match the ID in the Primary Product Feed) 

• quantity — quantity available in store 

• availability — availability status (accepted values: in stock, out of stock, limited availability, on display to order) 

• price — product price at that store 

Optional but recommended attributes: 

• sale_price — promotional price 

• sale_price_effective_date — promotion validity period 

• pickup_method — pickup method (buy, reserve, ship to store, not supported) 

• pickup_sla — estimated pickup time (same day, next day, 2-day, etc.) 

The feed can be uploaded in TSV/CSV or XML format, via manual upload, scheduled URL or API. The recommended update frequency is at least daily — for stores with high-turnover inventory, more frequent or real-time updates are preferable.

Step 6 — Google inventory verification

Before LIAs can go live, Google requires a physical verification of the inventory declared in the feed. The process works as follows: 

• Google sends a verifier to the physical store 

• Approximately 100 products are checked at random, comparing feed availability with actual in-store availability 

• If the accuracy match exceeds the required threshold, verification is passed and LIAs can be activated 

To be prepared, it's essential that the feed is accurate and up to date at the time the verifier arrives. Timelines vary, but the process is generally completed within 2–4 weeks of the request.

Step 7 — Activate LIAs in Google Ads

The final step: enabling local inventory ads directly in Google Ads. 

For standard Shopping campaigns: access the existing campaign (or create a new one), go to Campaign settings and enable the toggle "Enable ads for products sold in local stores". 

For Performance Max campaigns: if you're using Performance Max with an omnichannel sales objective, LIAs are automatically included when objectives include store visits. This is currently the approach recommended by Google for those who want to manage online conversions and offline traffic in an integrated way.

5. Optimising Local Inventory Ads: best practices

Manage bids based on distance and time of day

LIAs perform best when bids account for geographic and temporal context. Two simple and effective strategies: 

• Increase bids for users within 25–35 km of the store: the likelihood of a visit is significantly higher than for more distant users 

• Increase bids during store opening hours, when a physical visit is actually feasible 

Both adjustments are applied through bid adjustments for location and ad scheduling in Google Ads.

Optimise your Google Business Profile

Often underestimated, the Google Business Profile is one of the most important assets for LIA success. Keeping information up to date and the profile well-maintained improves visibility in local searches and ensures that potential customers have everything they need to reach the store at the right moment. The key elements to keep under control are: 

• Business details: address, phone number and opening hours, including seasonal or exceptional variations

• Visual content: updated photos of the shopfront, interior and featured products, to build trust before the customer even walks through the door

• Reviews: encouraging satisfied customers to leave feedback and responding thoughtfully to all reviews received, positive or negative

A neglected or inaccurate profile can undermine the entire advertising investment: directing a user to a closed store or the wrong address is an experience that is hard to recover from. Maintaining the Google Business Profile is not a one-off activity — it is an ongoing practice that forms the foundation of any effective LIA strategy.

Keep feeds accurate and up to date

Feed quality is the single most critical factor for LIA performance. Inaccurate data — products listed as available when they're not, incorrect prices, mismatched store codes — damages both ad performance and customer experience, as customers may visit the store only to find the product is absent.  Operational best practices: 

• Automate feed updates by connecting them directly to your inventory management system or ERP 

• Set updates at least daily, more frequently for high-turnover categories 

• Regularly monitor errors and warnings in the Diagnostics section of Google Merchant Center

Leverage "pick up today" and "in-store pickup" labels

Pickup labels are one of the elements that most significantly increase LIA click-through rates, because they immediately communicate availability and convenience. To activate them, in the Local Product Inventory Feed set: 

• pickup_method to buy or reserve 

• pickup_sla to same day or next day to obtain the most visible and attractive labels 

This information is displayed directly in the ad and storefront, reducing friction between the search moment and the store visit.

Monitor performance with click type segmentation

In Google Ads, LIAs generate different types of clicks, each carrying a different meaning in terms of user intent: 

• "Get directions" clicks — high intent to visit in person 

• "Call the store" clicks — immediate interest, user in the decision stage 

• "Store website" clicks — more exploratory interest 

• Product clicks to the storefront — specific interest in the product 

To activate segmentation: Columns → Segment → Click type. By combining this data with offline conversions (store visits), it's possible to measure the real return of campaigns on the physical business.

Calculate omnichannel ROI with store visit reports

Click type segmentation is the starting point, but for a complete picture of return on investment it's necessary to connect campaign data to physical conversions. Google provides Store Visit Reports, which show which campaigns, keywords and devices are actually generating in-store visits — not just clicks. To calculate ROI in a structured way, the reference formula is: (Revenue – Cost of Goods Sold – Ad Spend) / (Cost of Goods Sold + Ad Spend). Assigning an estimated monetary value to each store visit — based on the average transaction value and physical conversion rate — allows you to compare LIA performance against other marketing activities on a level playing field.

It's worth noting that store visit data is aggregated and anonymous: Google does not associate visits with individual users, but estimates them statistically through location signals. This means the figures should be read as trend indicators rather than exact data, and that access to this type of reporting requires a minimum volume of clicks and visits — not all accounts qualify immediately.

Advanced tools for high-quality feeds

Managing LIA feeds correctly goes beyond periodic data updates: it requires precision, automation and optimised content across every dimension. Highstreet.io integrates three specific features into its platform that directly address these needs. 

 

The first concerns dynamic inventory management. With the Active Inventorysolution, availability is synchronised in real time across all channels as soon as an order is registered, eliminating the risk of LIAs continuing to promote products that are no longer available in store. For retailers with high turnover or multichannel presence, this means always-accurate ads and a consistent customer experience between what is shown online and what is physically in store.

 

The second concerns images. TheImage Manager integrated into the platform manages, transforms and automatically distributes images in formats optimised for each channel, adapting to the standards of Google and other active marketplaces. Compressed files, correct dimensions and compliant backgrounds reduce the risk of disapprovals and contribute to improving the CTR of local ads. Any update propagates in real time across all active feeds. 

 

The third concerns content quality. The AI Enrichment feature generates titles, descriptions and attributes that are more relevant for local searches, incorporating the terms users actually use and adapting copy to the editorial standards of each channel. In the context of LIAs — where the user decides within seconds whether an ad matches their nearby search — having more precise and contextualised content translates directly into greater visibility and a higher conversion rate.

6. Frequently Asked Questions

Do Local Inventory Ads work for small stores too? 

Yes. There is no minimum size or revenue threshold to activate LIAs. In fact, for independent local stores they often represent a competitive advantage over large retailers: they allow you to compete on geographic relevance and physical proximity — two areas where Amazon and major marketplaces have little to offer. 

 

What's the difference between Local Inventory Ads and Local Campaigns?

Local Campaigns (now integrated into Performance Max) were campaigns designed to increase store visits across multiple formats: text ads, display, YouTube and Google Maps. Local Inventory Ads are a specific Shopping ad format with local availability. The two are not mutually exclusive: LIAs drive visibility on the specific product, while Performance Max broadens coverage across multiple touchpoints along the purchase journey. 

 

How much do Local Inventory Ads cost?

LIAs operate on a CPC (cost per click) model, exactly like standard Shopping ads. The cost depends on the bids you set, competition within the product category and feed quality. There is no additional fixed cost compared to standard Shopping campaigns. 

 

Do I need an eCommerce site to run Local Inventory Ads?

No. LIAs are designed specifically for retailers with physical stores, even without an eCommerce site. The Google-Hosted Local Storefront option allows you to run ads without needing dedicated product pages on your own website. 

 

In which countries are Local Inventory Ads available?

LIAs are available in more than 17 countries, including Italy, Germany, France, Spain, the United Kingdom, the United States, Canada, Australia and Japan. The updated list can be found in the official Google Merchant Center documentation. 

 

What does onboarding for Local Inventory Ads involve?

Launching LIAs requires configuring multiple feeds, completing Google's physical inventory verification and integrating with existing business systems. It's a process that involves several areas simultaneously and, without specific expertise, can generate hard-to-diagnose errors and delays in going live.  Highstreet.io supports retailers through every stage: from initial requirements analysis through to feed configuration, rules and automations, with verification of every output before publication. After launch, the team remains operational with continuous monitoring, error correction and optimisation recommendations. An approach that stands clearly apart from self-service tools — and one that translates into faster activation times and stronger campaigns from day one. 

7. 7. Conclusions

Local Inventory Ads represent one of the most effective tools Google offers to retailers with physical stores. In a landscape where the boundary between online and offline is increasingly blurred, intercepting the consumer at the moment of local search — and giving them immediate visibility into product availability — is a concrete and measurable competitive advantage.  The setup requires an initial investment in feed configuration and account linking, but once operational the system is scalable, automatable and provides precise data on the real impact on the physical business. Integration with Performance Max and the ability to track store visits as conversions make LIAs a central asset in any omnichannel strategy. 

 

Want to activate Local Inventory Ads for i tuoi your stores? Find out how we can help.