How will grocers react to Instacart’s expanded digital ad network?
Instacart has added a number of digital ad products on its site to give brands more opportunities to reach consumers as they shop for the groceries. The third-party grocery platform and delivery service has a clear revenue upside in expanding its digital ad offering. It also puts the service in direct competition with many of its grocery retailer customers who have networks of their own.
Adweek reports that the number of advertisers on Instacart’s ad network grew “fivefold” in 2021, bringing in $550 million in ad revenues. The company is expected to grow that number to $795 million this year, according to an eMarketer forecast.
Instacart says that it now works with more than 4,000 consumer packaged goods (CPG) brands across the U.S. and Canada. The third-party provider has more than 700 retail chain customers, covering 85 percent of the U.S. market and 90 percent of Canada.
CPG brands such as Ben & Jerry’s, Breyers, Kidfresh, Klondike, Milton’s Craft Bakers, Talenti and Tillamook have already signed up for Instacart Ads, a program that features brand-specific pages and other display options on and off the site.
A press release to announce the program says that brand pages are free and carry a unique URL connected to display ads on Instacart and outside the platform, as well. Advertisers have the ability to customize their pages and customers can shop directly from them. Pages will show product availability based on the last retailer shopped on the Instacart site.
Instacart is also promoting a number of display options that give brands the opportunity to target their messages based on anonymized purchasing behavior and keyword searches. Ads appear throughout the shopping journey on digital storefronts, in “departments” and in “aisles”.
“We know the way consumers shop on Instacart varies. Some people head straight for a specific aisle to browse, and some start with the ‘Buy It Again’ carousel displayed on the storefront to get their favorite ‘go to’ items, while others have a list of items already in mind or might use the search function to find inspiration,” Ryan Mayward, Instacart vice president of ad sales, said in a statement. “As more people turn to Instacart to shop from their favorite retailers and discover new products, we’re focused on creating unique ways to help brands engage consumers throughout their online shopping journey.”
- Instacart Announces New CPG Brand Pages and Suite of Display Advertising Products, Delivering Full-Funnel Marketing Capabilities to Brands – Instacart
- Instacart Ads
- Instacart Amps Up Ad Tools for CPG Advertisers – Adweek
DISCUSSION QUESTIONS: How should grocers that use Instacart for deliveries view its expanded ad network? Will the relationship between CPGs and Instacart affect retailer relationships?