Google Shopping Ads just got more precise! Google has recently introduced Local Inventory Custom Labels which is a brand new capability for Local Inventory Feeds. VersaFeed is proud to be an early participant in this pilot. This development represents a significant leap forward in how advertisers can target, budget and optimize campaigns at a local level. While this feature is still new and not yet widely available, the early results are already demonstrating strong potential.
What is a Local Inventory Custom Label?
Traditionally advertisers could use any of 5 custom label fields in the primary product feed for ad targeting (through campaign set up). This approach, though, doesn’t allow for much flexibility when conditions vary from store to store. With this new pilot, Google is expanding this capacity to the inventory feed through an inventory custom label which means advertisers can now assign labels to specific products at specific stores - allowing campaigns to differentiate between identical products depending on where they’re being sold.
Why This Matters?
Large national or multi-division retailers manage inventory with pricing, availability and sales/promotions that often vary by region or even potentially from store to store. Until now, advertisers had to take a one-size-fits-all approach, assigning custom labels at the product level, and it was applied across all stores.
With local inventory custom labels, advertisers can:
- Target more granularly - Assign custom labels to items only in the divisions or stores where they apply.
- Optimize budgets - Dedicate spend to high-priority items in specific regions.
- Boost performance - Serve more relevant ads aligned with local inventory sales and promotions.
This is a major shift from broad campaign structures toward precision targeting that mirror real-world shopping conditions. Because this new attribute lives in the inventory feed, feed providers like VersaFeed can implement it with a relatively low lift.
What's Next?
Google has indicated that this feature will likely expand beyond the pilot later in 2025, though it still requires allow listing at this time. Advertisers interested in testing should reach out to their Google rep to begin the process.