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Google Enables Local Inventory Ads by Default

Google confirmed on the Google Ads Developer Blog that Local Inventory Ads (LIA) will be enabled by default for all Shopping campaigns, effective August 31st. This change means advertisers can no longer disable LIAs through the Google Ads API. For advertisers whose workflows depend on separating local and online inventory, updates to code and campaign configurations are necessary before the August deadline.
Beginning August 31st, Google will automatically activate the "Local products" setting for every Shopping campaign. Previously, advertisers were required to explicitly set the "enable_local" field to true within a campaign's ShoppingSetting to serve products from their Local Inventory Ads feed. Post-update, Shopping campaigns will invariably have Local Inventory Ads enabled, and the "Campaign.ShoppingSetting.enable_local" field will be disregarded, with Google treating the setting as true irrespective of the submitted value. This adjustment brings Shopping campaigns in line with Performance Max for Retail, where Local Inventory Ads are already enabled by default.
Developers utilizing Google Ads API v25.1 or later are instructed to cease attempts to set "enable_local" to false, as this action will result in a ContextError.OPERATION_NOT_PERMITTED_FOR_CONTEXT. For API versions preceding v25.1, existing code will function, but any efforts to disable Local Inventory Ads will be ignored, with Google defaulting the value to true. Advertisers seeking to prevent local products from serving have two primary alternatives: they can establish a listing scope using CampaignCriterionService with "product_channel" set to ONLINE, or they can utilize the Inventory filter within Google Ads campaign settings to exclude local inventory and manage separate budgets for online and local products.
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