How to Promote Local Inventory Using Google Merchant Center

In today’s digital-first world, the line between online browsing and offline shopping is becoming increasingly blurred—especially in regions like Pakistan, where more consumers are searching for products online before stepping into a store. Whether someone is looking for the latest smartphone, a pair of sneakers, or even a washing machine, their journey often begins on Google.

But what happens when a shopper wants to know if a product is available nearby? That’s where Google Merchant Center’s Local Inventory Ads come in. These ads help local retailers showcase their actual, in-store product availability to nearby customers searching on Google. When someone in Karachi, Lahore, or Islamabad searches for “running shoes near me,” they can be shown your exact product — available in-store, with pricing, pickup options, and directions to your shop.

For small and medium-sized businesses (SMBs), especially in Pakistan and other emerging markets, this is a game-changer. It levels the playing field, allowing local retailers to compete with larger eCommerce stores by connecting with buyers at the right place and time — just before they make a purchase decision.

Whether you're a clothing store in Lahore, an electronics dealer in Rawalpindi, or a shoe retailer in Faisalabad, promoting your local inventory through Google can help boost in-store traffic, increase conversions, and build brand trust in your neighborhood. And the best part? You don’t need to be a tech expert to get started.

In this blog, we’ll walk you through everything you need to know about promoting local inventory using Google Merchant Center — from understanding what local inventory ads are, to setting them up step by step, optimizing campaigns, and exploring real-world examples relevant to the Pakistani market.

Let’s get started.

What Are Local Inventory Ads?

How Local Inventory Ads Work

Local Inventory Ads (LIAs) are a type of Google Shopping ad that connects online searches with your in-store inventory. When someone nearby searches for a product you sell, Google shows them an ad with your product’s availability, price, and store location. These ads appear on Google Search, Google Shopping, and Maps.

The magic happens behind the scenes. You upload your store’s product data to Google Merchant Center, verify your store locations, and link everything with your Google Ads account. When everything is set up, your inventory gets pushed to potential buyers searching locally—on desktop or mobile. They can even see whether the item is available for same-day pickup or pick up later.

It’s a seamless way to tell customers: “Yes, we have what you’re looking for—right now, just around the corner.”

Key Benefits for Retailers

There’s a reason why top-performing local businesses are jumping on board with local inventory ads. Here’s what makes them so powerful:

• Drive More In-Store Visits: Google reports that LIAs can lead to a 21% increase in store visits for advertisers.

• Boost Purchase Intent: Shoppers are more likely to buy when they know the product is available nearby—especially in urgent-buy situations.

• Improve Visibility on Mobile: These ads dominate mobile results with maps, business info, and quick actions like "Call" or "Directions."

• Local Relevance: LIAs help local businesses stand out against big online-only retailers—critical in markets like Pakistan where community trust and proximity still drive purchasing decisions.

Local Listings vs. Local Inventory Ads

Many retailers get confused between Free Local Listings and Local Inventory Ads—both are part of Google Merchant Center but serve different purposes.

• Free Local Listings: These are unpaid, organic listings that show your in-store product availability on Google surfaces like Maps and Shopping.

• Local Inventory Ads: These are paid ads that appear in more prominent spots on search results with higher visibility and customizable call-to-actions.

Think of free local listings as passive exposure, and local inventory ads as your active promotional tool to drive real foot traffic and sales.

Setting Up Local Inventory in Google Merchant Center

Prerequisites & Eligibility

Before you jump into promoting local inventory, make sure your business meets Google’s requirements:

• You must have a physical store where customers can visit and buy products.

• Your Google Business Profile (formerly Google My Business) must be set up and verified.

• Your product data—like pricing and stock availability—must be accurate and regularly updated.

• You must comply with Google Merchant Center policies, such as no login or membership restrictions, no misleading claims, and proper handling of customer data.

This applies globally, including to businesses operating in Pakistan. While the feature is most mature in countries like the US and UK, many Pakistani businesses can begin preparing and taking advantage of free local listings even now.

Step-by-Step Setup Process

Here’s a simplified breakdown of how to get started:

1. Create or log in to your Google Merchant Center account.

2. Enable Local Inventory Ads by navigating to “Growth” → “Manage Programs” and activating “Local Inventory Ads.”

3. Verify your store locations by linking to your Google Business Profile.

4. Create and upload a local product inventory feed that includes store codes, product IDs, availability, and pricing.

5. Provide product images and details via a product feed that matches what you’re selling in-store.

Google gives you the flexibility to upload feeds manually (via spreadsheet), use scheduled fetch, or connect automatically via Content API.

Once your feeds are approved and your account is verified, you’re ready to start showing your local inventory to customers searching nearby.

Syncing Inventory & Verifying Store

Keeping your in-store inventory synced is critical for trust and conversion. Out-of-date information (e.g., showing a product in stock when it's actually sold out) can hurt your brand and lead to ad disapprovals.

To stay compliant and maximize results:

• Sync inventory data daily (or multiple times a day if possible)

• Ensure your store codes in the feed match your Business Profile

• Use pickup options (e.g., “pickup today” or “pickup later”) to improve customer convenience

• Periodically review your feed status in Google Merchant Center to catch and fix any data issues

Pro tip: For multi-location retailers, Google allows you to manage separate feeds per store or use a consolidated feed with location-specific inventory fields.

Promoting & Optimizing Local Inventory Ads

Linking with Shopping or Performance Max

Once your local inventory is live in Google Merchant Center, the next step is to start running ads that actually reach customers. You can do this using two main campaign types:

1. Standard Shopping Campaigns – These are more manual but give you tighter control over product groups, bids, and negative keywords.

2. Performance Max Campaigns – Recommended for broader reach. Google uses AI to deliver your ads across YouTube, Gmail, Search, Maps, and more.

Tip for Pakistani retailers: If you're new to ads, Performance Max can be easier to manage and reach more users, especially in mobile-heavy markets.

Don’t forget to enable the “Local Products” setting inside your campaign configuration to allow ads for your in-store inventory to show up.

Using Local Promotions to Drive Store Visits

Want your product listings to stand out even more?

Use Local Promotions to add “special offer” tags to your local inventory ads. For example:

• “Get 15% off in-store”

• “Buy 1 Get 1 Free - Today Only”

These small incentives can significantly increase click-through rates (CTR) and foot traffic—especially in price-sensitive markets.

To activate this feature:

• Create a promotion in your Merchant Center under “Promotions” tab

• Choose “Store promotion” and input eligible SKUs

• Set start/end dates and promo codes (if any)

Note: This feature is available in select countries, but Google may expand access as more businesses join from regions like Pakistan.

Common Setup Mistakes to Avoid

Avoiding these pitfalls will save you time and money:

• Mismatched inventory: Your feed shows an item is in stock, but it's sold out in-store.

• Unverified store location: Your Business Profile isn’t linked or hasn’t been approved.

• Campaign conflict: Local inventory ads and online product ads compete for the same search term without coordination.

Fix these by setting daily inventory syncs, using clear product titles, and monitoring Merchant Center diagnostics regularly.

Local Inventory Ads in Action

Case Study: Small Retailer Success (Pakistan Example)

Let’s imagine a small mobile accessories shop in Lahore—let's call it GadgetZone. Traditionally, their sales relied heavily on foot traffic and word-of-mouth. But after setting up Local Inventory Ads through Google Merchant Center, things changed quickly.

Within the first 30 days:

• Store visits increased by 18%

• Online product views for in-stock items rose by 42%

• Walk-in customers mentioned “I saw it on Google” regularly

By syncing their in-store product feed daily and running local promotions (like "10% off for walk-in customers"), GadgetZone began competing with much larger retailers—without spending a huge advertising budget.

This example shows how even modest retailers in Pakistan can digitally amplify their local presence using Google’s tools.

When to Use Local vs. Online-Only Ads

One common question is: Should I promote my in-store inventory, online products, or both?

Here’s a simple way to decide:

By combining both types strategically, you can cover all buyer journeys—from research online to purchase in-store or delivery.

Metrics to Track for Local Campaign Success

Tracking the right performance indicators helps you know what’s working. In Google Ads and Merchant Center, pay attention to:

• Store Visits (if enabled in your campaign reporting)

• Product Views by Location

• CTR on Local Promotions

• “Get Directions” clicks

• Conversion Rate on Pickup Options

These metrics help optimize your ads, budgets, and messaging. If you're running Performance Max campaigns, consider segmenting reports to isolate local interactions.

Conclusion

In today’s competitive retail world, simply having great products isn’t enough—you need to be found where your customers are looking. And in Pakistan, just like everywhere else, that place is Google.

With Local Inventory Ads, you’re not just placing digital ads—you’re putting your in-store shelves directly in front of people who are actively searching for what you sell, right in your neighborhood. Whether it’s mobile accessories in Lahore, fashion wear in Karachi, or household appliances in Islamabad, your store can be discovered by customers ready to buy—today.

The best part? You don’t need a massive marketing team or a complex eCommerce setup. With a verified Google Merchant Center account, updated inventory feed, and the right campaign strategy, you can start promoting your in-store inventory to thousands of potential buyers nearby.

We covered a lot in this guide:

• What local inventory ads are and how they work

• Step-by-step setup instructions with best practices

• How to promote effectively using Google Ads

• Real-world applications and metrics to measure success

It’s clear: if you're a local business owner in Pakistan, this is your chance to take control of your digital visibility—and boost real-world results.

Ready to get started?
Create your Merchant Center account, verify your store, and start showcasing your inventory where it matters most—right in front of ready-to-buy customers.

Need help? Let us know in the comments or reach out for a setup walkthrough.