What are Local Inventory Ads? Boost Your Local Sales with Google Ads

Local Inventory Ads (LIAs) are a powerful tool for retail businesses to boost local sales. They are important now more than ever. Customers regularly search for their favorite products and store key information on their devices. 

Google Shopping Local Inventory Ads are important for local businesses since they allow them to contact customers when they are browsing and in “research mode.” For retail companies with physical storefronts, Google LIAs are a type of advertising that effectively bridges the gap between online and in-store experiences. They are different from regular Google Shopping ads in terms of their purpose, appearance, and the website to which they take visitors after clicking.

What are Local Inventory Ads?

Local inventory Ads are a specialized form of Google Shopping Ads designed to promote in-store products in real time. When customers search for any product on Google, these ads appear with details such as product availability in nearby stores, store location, hours, promotions, prices, and availability. 

For example, when a shopper searches for ‘running shoes near me,’ the result shows the relevant product available at a nearby store. This is to make the shopper understand that their desired shoes are available in the store and that they can buy them from the store nearby. When the customer clicks on the ad, it takes them to Google Hosted storefronts or the retailer’s landing page. They can check store details before visiting the store.

These Google Local Inventory Ads encourage more people to come to physical stores.  These ads attract customers’ interest because they display products that are ready to dispatch. The overall shopping experience improves as LIAs are an effective way to bridge the gap between physical and online stores. 

How these Ads Work

When you search for a product fon Google, it identifies the store that has the relevant product in stock, and a Local Inventory Ad appears. Google uses real-time signals, including a shopper’s IP address and device location, to target location. You may see ads based on your previous activity, depending on your personalized settings. LIA appears to you if you have enabled location history. Google can show products to you within your brick-and-mortar store’s vicinity with pinpoint accuracy.

Requirements for Local Inventory Ads

The primary factor in running Local Inventory Ads. However, there are other qualifying criteria for setting up these ads. 

• Your Business must have a physical storefront so that customers come in person to view and buy the product. 
• The products that are available to buy. 
• The store should be in the same country where the ad is displayed. 
• You shouldn’t have a store membership to purchase products. 
• Add any additional fees that are expected to be charged at the checkout in the total product price. 
• Google recommends merchant-hosted local storefronts. This way, your product can serve all locations. 
• Your Google Shopping Local Inventory Ad must follow shopping ads policies. 
• You must be eligible for the inventory verification process. 

Pros and Cons of Local Inventory Ads

Google Local Inventory Ads offer some advantages as well as disadvantages. You can generate good results only if you set them up and maximize the pros. Only then will LIA be a welcome addition to your online marketing strategy. 

Pros 

Increased In-Store Sales

Local Inventory Ads help you bring more customers to stores. They target shoppers searching for nearby products. People prefer buying from local stores instead of waiting for delivery. This increases foot traffic and boosts in-store sales.

Enhanced Customer Experience

Google Local Inventory Ads show product availability in real time. Customers know if an item is in stock before visiting. This prevents wasted trips and improves shopping satisfaction. Customers trust stores that provide accurate stock details.

Competitive Edge Over Online Retailers

Many shoppers check online but prefer to buy in-store. Google Shopping Local Inventory Ads help local stores compete with e-commerce businesses. They highlight in-stock products that encourage quick purchases. Local businesses gain more visibility and sales.

Mobile Shopping Optimization

Most shoppers search for products on mobile devices. Local Inventory Ads Google helps them to find local stores easily. They display store locations, hours, and availability. Shopping has become faster and more convenient for customers.

Omnichannel Marketing Benefits

These ads connect online searches with in-store shopping. Google Shopping Local Inventory Ads help to make it easier for customers to visit stores. You can run both online and offline campaigns and improve overall marketing results.

Higher Ad Relevance

Google Local Inventory Ads appear only to nearby customers. This makes them highly relevant and cost-effective. Unlike regular Google Ads, they target shoppers ready to buy. This improves ad performance and reduces wasted clicks.

Cons 

Complex Setup Process

Multiple data feeds are required to set up Local Inventory Ads for Google. Businesses must create products, inventory, and store feeds. Managing these feeds can be complicated for beginners. Small businesses may find it difficult to handle.

Frequent Inventory Updates Required

Stock availability must be updated regularly. Google Shopping Local Inventory Ads work best with real-time data. Incorrect stock details can frustrate customers. This requires businesses to manage inventory updates carefully.

Higher Cost-Per-Click 

Sometimes, it is expensive to bid on Google Local Inventory Ads in competitive industries. Popular product categories may have high CPC rates. Businesses must optimize campaigns to control costs. Adjusting bids based on location and demand can help.

Dependence on Google’s Algorithm

Google decides when and where ads appear. Local Inventory Ads Google relies on Google’s ranking system. Businesses have limited control over ad placement. This can make it hard to predict results.

Limited Impact for Online-Only Businesses

These ads focus on in-store shopping, not online sales. Google Shopping Local Inventory Ads may not benefit e-commerce businesses. Only retailers with physical stores can use them. Online-only sellers need different ad strategies.

Lack of Customization

The format of LIAs follows a standard structure that’s provided by Google, and there is little room for retailers to add branding, tailor the local inventory ads, or customize their product listings in any way.

Google Shopping Ads vs. Local Inventory Ads ‍

An untrained eye may see Google Shopping Ads and Local Inventory ads and may think the same. There are some similarities between the both. But there are three key differences between the two. 

1. Goal and Purpose

The goal of Google Shopping Ads is to boost online sales. These ads work best if you have e-commerce stores. They help you drive traffic to product pages, which makes online purchases easier. Retailers without physical stores mostly use these ads. In contrast, Google Local Shopping Ads promote in-store sales. They target shoppers who prefer to buy locally. These ads display nearby product availability and encourage store visits. Businesses with physical stores benefit the most from these ads.

2. Appearance of Listings

These ads appear in different ways. Google Shopping Local Inventory Ads include labels like “In-store” and “Pick up today.” These labels inform customers about product availability. Shoppers can quickly decide if they want to visit the store. Google Shopping Ads highlight online shopping details. They display shipping options, discounts, and promotions. These ads attract customers who prefer to shop online. The focus is on quick delivery and special offers.

3. Landing Page Destination

Another key difference is where users land after clicking. Google Shopping Ads take users directly to a product page. This makes it easy for them to buy the item online. The goal is to drive fast conversions. Local Inventory Ads Google uses different landing pages. They lead users to a Merchant-Hosted Local Storefront or a Google-Hosted Storefront. These pages show store locations, stock availability, and prices. Customers can decide if they want to visit the store. This helps businesses increase foot traffic.

Which One Should You Use?

Choosing between these ads depends on your business needs. If you run an online store, we recommend you use Google Shopping Ads. They drive traffic to websites and boost online sales. However, if you have a physical store, Google Shopping Local Inventory Ads are better. They attract local shoppers and increase in-store visits. These ads are great for you if you want to connect online searches with offline sales. However, you can use both ads together for better results. This strategy helps you reach both online and local customers. It also improves sales and maximizes visibility.

How to set up Local Inventory Ads

We have a complete guide by which you can set up LIA for both physical and online stores. 

1. Create and Link Google Accounts

To run LIA, you have to create and link the following accounts:

• Google business profile
• Google Merchant Center
• Google Ads

Google Business Profile is your free listing on Google that displays key details about your business. This includes name, address, opening hours, and customer reviews.

Google Merchant Center (GMC)  helps you upload and manage product data, which is then used for both regular Shopping Ads and Local Inventory Ads.

Google Ads – A Google Ads account is important for setting up and running Local Inventory Ads.

To connect these accounts, go to Google Merchant Center, click on Settings, and select Linked Accounts to complete the process.

Choose the type of Google profile you would like to link to GMC and then link the relevant accounts.

2. Enable LIA and Add Business Information

In your Google Merchant Center account, go to the ‘Growth’ section. Tab on ‘Manage Programs’ Choose ‘Local Inventory Ads.’ Click  on ‘Get Started.’

Choose the country where your store is located and where you want to run Local Inventory Ads (LIAs). Fill in the business information section, which includes:

• Business name
• Address
• Contact number for verification
• Customer service contact details

Once all details are added, a green tick will confirm that the required information has been completed.

3. Select a Landing Page Experience

The landing page experience is what users see after they click on a Local Inventory Ad.  You can choose this page from different options to create the right experience for your customers. This depends on your business needs and capabilities. 

Head over to the Settings section in Google Merchant Center and choose the option labeled “Local Inventory Ads setup.” Once you click on it, you will be directed to select the country where your Local Inventory Ads are running. You can now proceed with configuring the landing page experience that best suits your business.

Next, go to the ‘Product pages on your website’ section, where you will find three different local storefront options. These options determine how your customers interact with your product listings when they click on your Local Inventory Ad. Carefully review each option and select the landing page experience that best aligns with your business needs and the shopping experience you want to provide.

You can check this overview of the available choices to help you decide which option is best for you. 

The Google-hosted Local Shop Front is ideal if your product pages do not indicate which specific stores carry a given product. For example, if a shoe brand has three stores that all potentially stock a certain pair of trainers but the product page does not specify their availability at each location, then a Google-hosted local shop front is the recommended option.

The Merchant-Managed Local Shop Front (Basic) is suitable if your product pages can confirm product availability at individual stores. If a shopper can visit your website and see that a pair of trainers is available at their nearest store, this setup is the right choice.

The Merchant-Managed Local Shop Front (Full) is the most comprehensive option, designed for retailers who can confirm product availability at specific stores and also display store-specific pricing and stock levels. If your system allows you to show both the price and availability for each location, this is the best option for providing a highly detailed and transparent shopping experience.

4. Give Price Guarantee Policy

If you have selected the merchant-managed local shopfront option, you must provide Google with an example product page. This helps Google review your product pages and verify that they meet the requirements for running local inventory ads. Click on the ‘Example product page’ section and enter the URL of the product page you want to submit as an example. This page should reflect how your products are displayed and how availability is shown to shoppers.

You must also submit a link to your price guarantee policy. This policy applies to retailers who sell products in-store for the same prices listed online in their local inventory ads. To complete this step, check the box that states, ‘Shoppers can purchase something in-store for the price on my website.’ Then, enter the link to your price guarantee policy so Google can review it.

5. Upload your Product Feed

You must have a primary product feed before running Local Inventory Ads. This feed serves as a detailed file containing all necessary product or service data, defining each item through specific attributes. The primary product feed includes key attributes like title, description, images, size, color, gender, shipping details, price, availability, and GTINs. These details help display your products accurately on Google Shopping and other platforms.

You can either set up a product feed manually or use a feed management tool. The tool helps automate, streamline, and optimize the process efficiently. The next step is to upload a local product inventory feed. This feed adds store-specific details to the primary feed, ensuring accurate product representation. It focuses on essential information related to physical store locations, such as availability and pricing. You provide customers with up-to-date and reliable product details by maintaining both feeds. This improves visibility and enhances the shopping experience for potential buyers. This includes:

• Product ID
• Store code 
• Availability 
• Price 

Keep this information updated so that when these ads are displayed to customers, they are accurate. Upload your feeds in the Google Merchant Center account, select the product section, and click on ‘Feeds’:

6. Enable local Products in your Shopping Campaigns

Enable your Ads in your shopping campaigns. Go to Google Ads and click on Google Shopping Campaign. Select campaign settings and head over to ‘local products.’ Check the box ‘Turn on ads for products sold in local shops’ and click Save. 

Skip this step if you are using Google Shopping campaigns as Performance Max campaigns. 

Takeaways

Google Local Inventory Ads bridge online and in-store shopping. These ads help businesses with physical stores boost their product visibility. When customers actively search nearby locations, these ads allow your business to benefit from reaching people with high purchase intent. 

You require some technical work to manage LIA. These ads are proven to boost overall performance for retailers and make them worth the effort.