Local Inventory Ads Setup: A Complete Guide for Beginners

Local Inventory Ads are an advanced tool for retailers with physical stores. They help businesses connect with nearby shoppers who are actively searching for products.

These ads let you reach potential customers during their browsing and research phase. This is a crucial time to capture their attention, and Google LIAs can help. Showing your products to local shoppers can drive traffic and boost sales effectively.

Google LIAs are specifically designed for retailers with physical locations. They bridge the gap between online searches and in-store shopping. Unlike standard Google Shopping ads, LIAs focus on showcasing nearby store inventory. They provide relevant information and direct users to a store where they can make a purchase.

What Are Google Local Inventory Ads?

Google LIAs are a type of advertising, designed for retail businesses with physical stores. These ads help store owners reach customers nearby. When someone searches on Google, these ads show relevant product information.

With LIAs, retailers can display essential product details like availability, sizes, and pricing. They also include in-store information, like store hours, location, etc. Additionally, customer reviews are often included in these ads.

Google LIAs connect online shopping with in-store visits, improving customers’ overall shopping experience, helping them make informed decisions, and saving them time.

For example, imagine a customer searching for the “best perfumes near me” They are interested in trying the perfume on in person. Google LIAs will show the following relevant products from nearby stores. 

When customers click on any of the above products, they are taken to a page hosted by Google. There is page contains more data about the product.

Who Can Set Up LIAs?

These ads are available to businesses that meet specific criteria: 

First, you must own a physical store that is open to the public. This means customers should be able to visit your store in person.

Second, your business should sell physical products that customers can buy directly from the store. Virtual or digital goods do not qualify for this type of ad.

Third, your store must be located in the same country where you want to display ads. This assures your ads reach the right public.

Emphasizing customer privacy is also important. You must respect data privacy laws and protect your clients’ private information.

Benefits of Local Inventory Ads:

LIAs provide an effective means of reaching out to local consumers. Here’s how they can benefit your business:

1. Display In-Store Stock

LIAs highlight key details like product availability, store hours, and location. This ensures customers know exactly what’s in stock before they arrive.

2. Boost Store Visits

When shoppers see your ads, they check for in-store availability. This often motivates them to visit your store to see the product firsthand.

3. Offer a Personalized Shopping Experience

Shoppers usually search for the product they want before visiting your store. This means they’re already interested in buying it. As a result, the shopping feels natural and not like they’re being pushed to make a purchase.

4. Drive Online and In-Store Sales

LIAs provide flexibility. Shoppers can choose to buy online for in-store pickup or shop directly in person. This convenience caters to different customer preferences and boosts sales across channels.

5. Track Ad Performance

Google offers valuable data on how your ads perform. You can monitor store visits, online clicks, and other key metrics to optimize your advertising strategy.

6. Increase In-Store Pickups

In-store pickup is a smart strategy that helps local businesses and sellers. It works because the customers are already interested in buying. Unlike online shopping, people often spend more time looking around when they come to the store. These visitors can become devoted clients if firms provide excellent service and a positive experience.

Google Local Inventory Ads do more than just showcase products. They build a bridge between your online presence and physical store, driving traffic and increasing sales opportunities.

Requirements for Local Inventory Ads

LIAs are a powerful way to connect your physical store with online shoppers. However, to set up these ads, specific requirements must be met. Location is the main factor, but there are other important criteria as well. Let’s go through them step by step:

1. Physical Storefront

Your business must have a physical store where customers can visit in person. This store should allow them to view and purchase the products directly. Without a local storefront, you won’t be eligible to run Inventory Ads.

2. Policy Compliance

Stores promoting products that violate Shopping Ads’ content policies cannot participate. Make sure your products comply with Google’s content guidelines before setting up ads.

3. Membership-Based Stores

Businesses requiring store or club memberships to purchase products are not eligible for these ads. However, there’s an exception. If non-members are allowed to buy products at different prices, your business may qualify. To participate, you must display non-member pricing clearly on your landing page. If you wish, you can also include member pricing alongside non-member pricing.

4. Targeted Country Presence

You need to be physically located in the country where you plan to target your ads. This ensures a genuine local connection with potential customers.

5. Accurate Pricing and Taxes

The total product price must include any additional fees charged during checkout. Your pricing should align with your online offers. Include all taxes and fees in the displayed price. Google advises using a merchant-hosted local storefront (full) for fees or taxes that apply only in specific areas. This ensures your products can be advertised across all locations seamlessly.

6. Inventory Verification

Be ready for Google’s inventory verification process. This step ensures that the products you advertise are accurately represented and available in-store.

Your business can leverage Inventory Ads to drive traffic to your physical store by meeting these requirements. Make sure to follow these guidelines for a smooth setup and improved results.

How to Set Up Google Local Inventory Ads?

Setting up LIAs can help retailers with online and physical stores increase visibility. Here’s a step-by-step guide to get started with LIAs. By following these steps, you can enjoy the benefits of running effective LIAs.

Step 1: Link Your Google Accounts

To set up LIAs, you need to create and link three essential Google accounts. Here’s a breakdown of each account:

• Google Business Profile

This is your Google listing for free. It includes important business details such as your name, address, customer reviews, working hours, etc.

• Google Merchant Center 

This platform is where online retailers upload and manage product data. The information here is used for regular Shopping Ads and local shopping ads.

• Google Ads

A Google Ads account is also necessary to set up and run your Inventory Ads campaigns.

To link these accounts, go to your GMC account. Click on the Settings menu, then select Linked Accounts. From there, choose the type of Google profiles you want to link. Follow the prompts to connect your relevant accounts seamlessly.

By completing these steps, you’ll be ready to set up your LIAs.

Step 2: Enable Google LIAs

You can enable the Inventory Ads in your GMC account. Follow these simple steps to get started:

• Log in to your GMC account.
• Open the left-side menu of the screen and select the Growth section.
• Select Manage Programs from the dropdown menu.
• Look for the Local Inventory Ads section and click Get Started.

The next step is to choose which country your physical stores are located in. Choose the right one to make sure your ads are appropriately targeted.

Step 3: Add Your Business Information

To complete the setup, must provide accurate business information. Here’s what you need to add:

• Your business name.
• The physical address of your store.
• A contact number for verification purposes.
• Customer service contact data.

A green checkmark will appear on the screen once you have entered all the necessary information. This indicates the successful verification of your business details.

Step 4: Select a Landing Page Experience

The landing page experience refers to what users see after clicking on a local inventory ad. As a retailer, you have three options for the landing page experience. The right choice depends on your business capabilities and needs. 

Start by opening the settings in Google Merchant Center. Click on the Local Inventory Ads setup section. Then, select the country you have set up for your LIAs.

Next, go to the product pages on your website section. Here, you’ll find three options for the local storefront landing pages. It is your task to select the one that best suits your business needs.

Here is a summary of every landing page option to help you make this decision:

• Google-Hosted Local Storefront

Choose this option if your product pages do not show which stores carry specific products. For example, imagine a shoe brand with three stores. If your website doesn’t indicate which stores have a specific pair of trainers in stock, this option is ideal. Google will host the local shop front for you, simplifying the process.

• Merchant-Managed Local Storefront (Basic)

This option works if your product pages can confirm availability at individual store locations. For instance, if customers can check that the trainers they’re searching for are available at their nearest store, the basic merchant-managed shop front is a great fit.

• Merchant-Managed Local Storefront (Full)

Choose this advanced option if you can do more than just confirm availability. This setup is ideal if your website can also display store-specific details like prices and real-time availability. For example, if customers can see both the price and availability of trainers at a specific store, this is the best choice.

Step 5: Upload Your Primary Feed

To run LIAs, you first need to set up a primary product feed. This feed is a detailed file that contains essential information about your products or services. It includes all the attributes and data that define each product or service you want to advertise.

You can choose how you want to create your product feed. You can either set it up manually or simplify the process by using a feed management tool. A tool like this can automatically create and optimize your feed for better efficiency.

To move forward, click on the option that says “Upload a product feed.” This will take you to the next step.

There are two main steps involved in creating your primary feed:

• Prepare the File: Create a file in either a defined text format or as an XML file.
• Submit the Details: Describe your feed and provide all necessary details to Google. 

By completing these steps, your primary feed will be ready, and you’ll be one step closer to running effective local inventory ads!

Step 6: Upload a Local Product Inventory Feed

After uploading the primary feed, the next step is to upload a local product inventory feed.

This feed is more specific than the primary product feed and contains less data. However, it plays an essential role in enhancing the primary feed by focusing on details related to your physical store.

To upload this local product inventory feed, follow these three simple steps:

• Create a File

Start by creating a defined text file or an XML file.

• Add Key Product Details

Add all required attributes for the products available in your physical store. Make sure this information is correct to prevent problems.

• Upload to Google Merchant Center

Finally, upload your local product inventory feed directly into your Google Merchant Center account.

This process ensures your local store’s products are visible and properly integrated into your online listings.

Step 7: Activate Local Products in Your Shopping Campaigns

To show local inventory ads on Google, the last step is to enable them in your Shopping campaigns. This process is handled directly in your Google Ads account.

• Start by logging into your Ads account. 
• Navigate to your Google Shopping campaign and click on its settings. 
• Look for the section labeled ‘Local products.’ 
• There, check the box that says ‘Turn on ads for products sold in local shops.’ 
• Once done, click the Save button to apply your changes.

However, if you are running your shopping campaigns as Performance Max campaigns, you can skip this step entirely. By linking your GMC account with Google Ads and adding the local product feed, LIAs will automatically run. Performance Max campaigns handle this feature by default, so no extra setup is needed.

Best Practices for Optimizing Local Inventory Ads 

LIAs are a powerful way to connect with nearby customers. To optimize their effectiveness, follow these simple practices.

1. Increase Bids for Nearby Shoppers:

LIAs are specifically designed to target customers within a certain distance from your store. Shoppers nearby are more likely to visit your store and make a purchase.

To target these customers, increase your bids for people within this range. Higher bids make your ads more visible to nearby shoppers. This increases the chances of them visiting your store. It also ensures your ad budget is spent on high-converting customers.

2. Boost Bids During Store Hours:

Shoppers often search for products when they know stores are open. By raising your bids during store hours, your ads will appear more frequently.

This strategy ensures you reach customers at the right time. It also increases the chances of converting searches into store visits. Use this approach to capture more high-intent shoppers.

3. Regularly Maintain Your LIAs

Managing local inventory ads isn’t a one-time task. Continuous updates and maintenance are essential to ensure your ads display the most accurate information. Regular management improves their effectiveness and enhances user trust.

Start by checking that product IDs are consistent across all feeds. A mismatch can cause issues, but third-party feed management tools can automate this process for you. These tools also allow you to enrich your data feed by adding optional details. For example, you can include sale prices, ‘limited availability,’ or ‘on display to order’ labels to make your ads more informative.

Ongoing maintenance with the help of these tools ensures your feed remains accurate. This reduces wasted advertising budgets and leads to better campaign performance overall.

4. Monitor Performance and Analyze Data

Local inventory ads are treated as separate campaigns in Google Ads. This means you can track their performance individually, separate from your other campaigns. Monitoring their results is key to understanding their impact and refining your strategy.

To analyze your LIA performance, log in to Google Ads. Navigate to your shopping campaign and click on ‘Segment.’ From there, select ‘Click type.’ This segmentation will display online product performance alongside your LIAs.

This data serves as a starting point for evaluating your LIAs. By analyzing the metrics, you can determine trends and the success of your campaigns. Afterward, you can make further adjustments to improve their results.

5. Highlight ‘In-Store Pickup’ and ‘Pickup Today’ Features

Increase your CTR and the chances of making a sale by including such attributes on your inventory ads. These labels act as clear indicators for potential customers. They show that the product they are interested in is not only in stock but also available nearby for convenient pickup.

This approach offers significant benefits for customers. Shoppers can quickly purchase the item they want without waiting for shipping. It makes same-day purchasing easier and faster, which enhances customer satisfaction.

To set this up, specific feed attributes must be added to your product data feed. Google provides a detailed guide on how to implement these attributes effectively. 

Follow this Google guide to ensure proper setup and optimal results.

Google Shopping Ads vs. Local Inventory Ads: 

Google LIAs and Google Shopping Ads share some similarities. They may even appear to be the same to the inexpert eye. However, they differ in three significant ways.

Purpose and Goals:

Shopping Ads are primarily designed to increase online sales. This makes them a great fit for e-commerce businesses looking to drive digital transactions. On the other hand, LIAs are tailored for businesses with physical stores. These ads aim to attract customers to visit in person and increase foot traffic to stores.

Appearance of Listings:

The way these ads appear to users is quite different. Google LIAs highlight in-store availability by showing labels like “In-store” or “Pick up today.” This helps customers identify products they can get immediately from nearby stores. Meanwhile, Google Shopping Ads focuses on online shopping details. They often display information like shipping options, discounts, or promotions.

Where Users Are Directed:

The destination for users also varies between these ad types. Google Shopping Ads sends users straight to product pages, making online purchases quick and simple. In contrast, LIAs guide users to either a Merchant-Hosted Local Storefront or a Google-Hosted Storefront. These pages provide details about local product availability and store information.

Which Should You Choose?

Both ad types are effective but serve different purposes. Your business objectives will decide which of these two ad formats to use. If you want to increase online sales, Shopping Ads are ideal. If driving in-store visits is your priority, LIAs may be the better option. 

Conclusion

Local Inventory Ads are an excellent way to connect online shopping with in-store purchases. They allow businesses with physical stores to increase their product visibility. These ads are especially effective because they target consumers actively searching in nearby locations. This ensures businesses can reach people with strong purchase intent, increasing the likelihood of conversions.

While setting up LIAs requires some initial technical work, the effort pays off. Businesses also need to manage them consistently to keep everything running smoothly. However, these ads have proven to improve overall performance for retailers. For this reason, they are worth the time and effort invested.