It is True that Data feeds provide a list of your inventory with important product details in Google Merchant Center.
Explanation: The details about your products that you submit to Google Merchant Center. Your product data is used to show dynamic ads and Shopping ads when you run an AdWords campaign. To send us your product data, you need to set up a feed for your product information in a Google Merchant Center account. Then link your Merchant Center account to AdWords.
Inside your product data, you’ll set attributes, such as “condition” and “availability,” to describe what the product is and the details of how you’re selling it. To help people on the web find your items more easily, it’s important to accurately describe your items using the available attributes.
Read more here: https://support.google.com/adwords/answer/2382952