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In Google Shopping Ads, all the products associated with a campaign are eligible to appear when a user searches for a related query. Inventory Filters help streamline the types of products you want to associate with a campaign. For example: If you have three different brands (Adidas, Reebok, New Balance) and you wish to create a separate campaign for each brand, you can use Inventory Filters to do the same. 

You can read more about how to set up Inventory Filters in Google Ads here. 

The new Shopping Campaign Management tool allows you to create a campaign for every variation of an attribute you choose. For example, you can choose to create one campaign for each brand or product type available in your feed. 

When you select 'Multiple campaigns by feed attributes' as the 'Campaign Creation Strategy' and choose an attribute, the tool will create one campaign for each unique value of that attribute. Going back to the example above, if you select Brand as the option to create multiple campaigns, the tool will create one campaign for each brand variation. To make sure that only products from one brand are part of each campaign, the tool will automatically create inventory filters for each campaign. 

For example, if there are three brand variations (Adidas, Reebok, New Balance), three campaigns will be created. The campaign for Reebok will have an inventory filter to only include those products from the feed that have a brand equal to Reebok.

Inventory filters are important to ensure that multiple campaigns are not advertising the same products and help when campaigns and campaign groups are refreshed by the Shopping Campaign Management tool.