Google Requires Local Inventory Ads Setting Update by 31 August 2026 | Here's What Retailers Need to Know

Google has begun notifying advertisers about an important Local Inventory Ads update affecting Standard Shopping campaigns. While this isn't a new feature launch, it is a mandatory campaign setting update that eligible retailers should complete before 31 August 2026 to ensure Local Inventory Ads continue serving without interruption.

If your business promotes products available in physical stores through Standard Shopping campaigns, here's everything you need to know.

What is changing?

Previously, advertisers could enable Local Inventory Ads by selecting a simple campaign setting within their Standard Shopping campaigns.

Google is now migrating this legacy configuration to a newer infrastructure. As part of this migration, advertisers must review and update the Local Inventory Ads setting in their Standard Shopping campaigns before 31 August 2026.

Failing to complete this Local Inventory Ads update could prevent ads from serving after the deadline.

Who is affected?

This Local Inventory Ads update only applies to advertisers currently using Local Inventory Ads.

You may be affected if you:

• Operate one or more physical retail stores

• Use Local Inventory Ads in Standard Shopping campaigns

• Participate in the Merchant Center Local Inventory programme

• Upload Local Product Inventory feeds

• Have a Google Business Profile linked to Merchant Center

If your business operates online only and does not promote in-store inventory, no action is required.

Does this affect Performance Max?

For most advertisers, Performance Max campaigns are not affected.

Performance Max already supports Local Inventory Ads automatically when:

• Local inventory is correctly configured in Merchant Center

• Local product feeds remain active

• Google Business Profile is linked correctly

• Listing groups are not restricted to online-only inventory

In most cases, no campaign changes are required for Performance Max.

If you're also exploring Google's latest optimisation capabilities, read our guide on Maximise Conversion Value in Standard Shopping campaigns to understand how bidding strategies continue to evolve.

What do advertisers need to do?

Google recommends reviewing every Standard Shopping campaign that serves local inventory.

For each affected Standard Shopping campaign:

1. Open the campaign in Google Ads.

2. Navigate to Campaign Settings.

3. Open Shopping Settings.

4. Locate the Local Inventory Ads / Local Products section.

5. Review and confirm the updated setting.

6. Save the campaign before 31 August 2026.

This Local Inventory Ads update only takes a few minutes but helps ensure uninterrupted delivery of Local Inventory Ads.

Why is Google making this change?

This Local Inventory Ads update is part of Google's ongoing migration to the new Merchant API ecosystem, replacing the legacy Shopping Content API infrastructure.

Google has been modernising Merchant Center by introducing newer APIs and improving how retailers manage omnichannel inventory, local products, and store information. Updating the campaign setting aligns existing Standard Shopping campaigns with this new infrastructure.

While advertisers won't notice major day-to-day changes, completing this Local Inventory Ads update ensures campaigns remain compatible with Google's latest systems.

To stay ahead of future Google Ads changes, explore our article on Google Ads Campaign Guidance and better experiment strategies.

What happens if you don't update?

Retailers relying on Local Inventory Ads could experience:

• Local Inventory Ads no longer serving

• Reduced visibility for nearby shoppers

• Loss of "Available nearby" product listings

• Lower in-store traffic driven from Google Shopping

Your online Shopping ads promoting ecommerce inventory through Standard Shopping campaigns will continue serving as normal.

Best Practice Checklist

If you manage Standard Shopping campaigns, we recommend the following:

• Review all Standard Shopping campaigns using Local Inventory Ads

• Complete the required Local Inventory Ads update before 31 August 2026

• Verify your Merchant Center Local Inventory programme remains active

• Confirm your Google Business Profile is correctly linked

• Check Local Product Feed diagnostics after updating

• Monitor local impressions, clicks and store visits over the following weeks

For advertisers looking to improve Shopping performance beyond this update, our guide on Google Shopping Ads optimisation and management provides practical insights into improving product visibility, campaign performance, and overall Shopping results. 

Key Takeaways

• Deadline: 31 August 2026

• Applies to: Standard Shopping campaigns using Local Inventory Ads

• Performance Max: Generally unaffected

• Online-only retailers: No action required

• Purpose: Migration to Google's new Local Inventory infrastructure

• Risk if ignored: Local Inventory Ads may stop serving after the deadline

Final Thoughts

This Local Inventory Ads update won't improve performance overnight, but it is an important operational change for retailers with physical stores running Standard Shopping campaigns.

If your business depends on Local Inventory Ads to drive footfall, taking a few minutes to review and update your campaign settings before 31 August 2026 will help avoid unnecessary disruption.

As Google continues modernising Merchant Center and Standard Shopping campaigns, staying on top of infrastructure updates is just as important as testing new campaign features. A quick review today can help maintain visibility, protect in-store traffic, and ensure your Local Inventory Ads continue serving without interruption.