Google Enables Local Inventory Ads by Default in Shopping Campaigns

Google is making Local Inventory Ads mandatory for all Shopping campaigns from 31 August 2026, bringing the campaign type into alignment with Performance Max for Retail. The change affects how UK retailers manage product inventory across online and local channels through the Google Ads platform. According to Google’s announcement, the enable_local field in Shopping campaigns will be automatically set to true, removing the option to disable local product visibility.

The update represents a structural shift in how Shopping campaigns operate within the Google Ads API. Retailers using Shopping campaigns alongside physical store locations will see local product feeds served by default, requiring immediate review of inventory filtering and budget allocation strategies. The change applies exclusively to Shopping campaigns and does not affect Performance Max, Demand Gen or other campaign types where the enable_local field continues to function as before.

What Changes on 31 August 2026

Google is eliminating the ability to disable Local Inventory Ads within Shopping campaigns. Previously, retailers and developers could control local product visibility through the Campaign.ShoppingSetting.enable_local field, setting it to false when they wanted to restrict campaigns to online inventory only. From 31 August, the Google Ads API will override any attempt to set this field to false, automatically enabling local products for all Shopping campaigns regardless of configuration attempts.

The change mirrors the existing behaviour of Performance Max for Retail campaigns, where local inventory has been enabled by default since the campaign type launched. Google is standardising Shopping campaign behaviour to match this precedent, simplifying campaign structure across retail formats. Retailers currently segregating online and local budgets through the enable_local toggle will need to adopt alternative filtering methods to maintain channel separation.

For UK retailers operating hybrid retail models with both ecommerce platforms and physical store networks, the update requires strategic adjustment. Google Ads Shopping campaigns serving products to UK consumers through local inventory must now account for mandatory local product visibility in all campaign structures, affecting budget planning, inventory management and channel attribution.

API Version Requirements and Developer Action

Developers working with Google Ads API v25.1 or later versions must update code to remove any instances where enable_local is explicitly set to false for Shopping campaigns. Attempting to disable the field after 31 August will trigger a ContextError.OPERATION_NOT_PERMITTED_FOR_CONTEXT error, breaking campaign creation and update workflows. Code audits should identify all Shopping campaign configurations and remove the enable_local parameter from Shopping campaign mutations.

For API versions prior to v25.1, Google will silently override enable_local values to true without returning an error. This creates a behaviour discrepancy between API versions where older implementations continue to function but produce different results than intended. Retailers relying on legacy API integrations should verify that Shopping campaigns are not unintentionally serving local inventory where budgets or inventory strategies assumed online-only distribution.

Retailers using automated bidding strategies calibrated for online-only Shopping campaigns may see performance fluctuations as local inventory becomes eligible for auction participation across all Shopping campaigns from 31 August.

The API change does not extend to Performance Max, Demand Gen or other campaign types. According to Google’s Shopping Ads documentation, the enable_local field retains its full functionality for non-Shopping campaign types, meaning developers managing multi-campaign structures must apply conditional logic based on campaign type when handling local inventory settings.

Alternative Methods for Channel Separation

Retailers currently using enable_local to separate online and local budgets must transition to inventory filtering through the CampaignCriterionService. The recommended approach involves adding a listing scope criterion with product_channel set to ONLINE, explicitly restricting the campaign to online product inventory. This method maintains budget separation between channels without relying on the deprecated enable_local field.

The inventory filter section within the Google Ads campaign settings UI provides a non-API alternative for retailers preferring manual configuration. Filtering out local inventory through the UI applies the same listing scope logic as API-based filtering, ensuring campaign budgets remain isolated to the intended channel. UK retailers operating separate campaigns for online and local distribution should implement filtering before 31 August to prevent unintended local product serving once the enable_local override takes effect.

Budget allocation strategies relying on enable_local for channel separation face immediate disruption if filtering is not implemented. Shopping campaigns across platforms require careful inventory management to prevent budget cannibalisation between online and local channels, particularly for retailers with overlapping product catalogues across distribution methods.

Implications for UK Retail Sectors

The mandatory change affects UK retail sectors differently based on their reliance on local inventory visibility. Fashion, home and garden, electronics and grocery retailers operating click-and-collect or reserve-and-collect services gain automatic visibility for local stock levels without additional configuration. For these sectors, the update simplifies campaign management by eliminating the need to manually enable local inventory across Shopping campaigns.

Pure-play ecommerce retailers without physical store networks face configuration overhead. Retailers exclusively selling online must now implement inventory filters to prevent Google from attempting to serve non-existent local inventory, which could trigger product disapprovals or reduce campaign efficiency. Product feeds must clearly distinguish online-only inventory through the availability attribute to avoid serving ineligible products in local contexts.

Marketplace retailers and dropshipping operations require particular attention. According to Google Merchant Center policy, Local Inventory Ads require physical store locations where customers can view and purchase products. Retailers without qualifying physical premises should implement ONLINE-only filtering to ensure compliance with local inventory eligibility requirements and prevent policy violations.

Priority Pixels works with UK retailers across all distribution models to implement compliant Shopping campaign structures that align inventory visibility with fulfilment capabilities. The mandatory Local Inventory Ads update requires proactive configuration before 31 August to maintain campaign performance and prevent unintended inventory serving.

Implementation Timeline and Next Steps

Retailers and developers should complete implementation by 30 August 2026 to avoid campaign disruption. The process involves auditing existing Shopping campaigns for enable_local usage, implementing inventory filtering where channel separation is required and validating that product feeds correctly identify online versus local availability. API integrations using v25.1 or later must remove enable_local from Shopping campaign mutations to prevent error responses after the change takes effect.

Performance monitoring in the weeks following 31 August will identify any unintended local inventory serving or budget allocation shifts. UK retailers should review campaign performance at channel level, comparing online and local contribution to conversions and revenue. Attribution models calibrated for online-only Shopping campaigns may require recalibration once local inventory becomes active across all campaigns.

The change reflects Google’s broader strategy of simplifying retail campaign management by standardising behaviour across campaign types. Retailers investing in omnichannel strategies benefit from reduced configuration complexity, with local inventory automatically eligible for visibility across Shopping campaigns. Those maintaining strict channel separation face additional configuration requirements but retain full control over inventory visibility through filtering mechanisms that replace the deprecated enable_local toggle.