How Local Ad Formats Level the Playing Field for Grocers

Using real-time data feeds, grocers can leverage Google’s local ad formats to promote in-store inventory and pricing, driving both foot traffic and regional delivery sales. Progressive Grocer sat down with VersaFeed CEO John Kleven to explore how these tools help grocers stay competitive in today’s market.

John Kleven is the CEO and founder of VersaFeed, which he started 17 years ago to empower retailers through advanced data feed solutions. With a degree in computer engineering, he wrote much of the early code and grew VersaFeed into an engineering-first company.

Progressive Grocer (PG): What are product feeds, and why should grocers care?

John Kleven (JK): Product feeds enable grocers to list their entire inventory on platforms like Google, Bing, Facebook, and even Pinterest. When customers search for certain products and are near a grocer’s physical stores or within their delivery radius, they’ll see ads for these exact products with real-time prices, availability, and images. This means grocers can effectively target local and regional shoppers whether they’re looking to pick up in-store or have groceries delivered.

PG: Don’t most grocers already do this?

JK: Surprisingly, while many grocers have adopted these ad formats, many are still doing it poorly. They might only list part of their product catalog, provide inaccurate information, or fail to update things like sale prices and promotions frequently enough.

PG: What do these ads look like, and why are they so effective?

JK: Let’s talk about Google, where these ads really shine. The ads are highly targeted and only appear when a shopper searches for a specific product that’s in stock. Google offers two main ad formats:

Local Inventory Ads (LIA): LIA targets shoppers near your store, displaying the exact product they searched for, along with the image, title, price, and how far away your store is. The goal is to get the shopper to visit and buy in person.

Regional Availability and Pricing Ads (RAAP): RAAP ads target shoppers within a delivery area (like zip codes). Similar to LIA, RAAP ads show the exact product and price but focus on delivery options rather than in-store pickup. Both formats ensure shoppers find the exact product they’re looking for, making these ads highly effective.

PG: What does VersaFeed do to make this happen for grocers?

JK: Creating the data feeds that power these ads is complex, especially with grocers who have intricate systems for managing inventory and pricing. VersaFeed handles all of this: we work with grocers’ tech teams, write custom code, and build these feeds daily to reflect up-to-the-minute prices, availability, and promotions. Once the feed is ready, it’s sent to Google (and other platforms) to make sure products are always visible.

PG: Which platforms support these types of ads?

JK: Google is the clear leader in this space, but Meta (Facebook) and Bing also offer similar products. We’ve even developed creative ways to run comparable ads on platforms like Pinterest, Snapchat, and TikTok, even though they don’t officially support these types of ads. The beauty of VersaFeed is that once we’re receiving your inventory data, we can easily broadcast it across all these channels.

PG: How can grocers get started?

JK: The first step is a free feed audit from our team. We’ll assess the current setup at no cost and provide recommendations. For retailers that are not yet listing on these channels, we’ll provide information on the easiest way to get started. If grocers are already live, VersaFeed ensures they are fully making use of both LIA and RAAP ads, promotions, hourly pricing updates, and additional channels.