Instacart’s new ad products attempt to remove some friction for CPG brands and spur users to increase their basket size while browsing the app.
Consumers are already on the platform to buy groceries and other goods and may be receptive to targeted messages that let them pick up complimentary products at the click of a button. Video capabilities open creative and storytelling opportunities for brands, though the tech remains in a “test and learn” phase, per Instacart.
The offerings could also be a way for marketing partners to gain more exposure with a digitally savvy audience. PepsiCo, for instance, has employed shoppable display ads to drive first-time purchases on Instacart, the announcement says.
Retail media campaigns have typically centered on placements like sponsored product listings, native ads, and displays. But video and shoppable concepts have entered the picture as the focus shifts to premium, media-rich units. Sharing its retail media roadmap for the year in March, Walmart said it would start testing on-site video ads and building new ad formats designed for connected TV and video.
Layering in a commerce element is appealing to marketers, as Instacart has sign-on from blue-chip names, including Unilever, Mondelēz, and PepsiCo. The company began running paid search campaigns back in 2019 and has steadily rounded out its ad suite. In March, it launched an Instacart Platform that includes tools to help other retailers prop up media networks.
However, the grocery delivery boom that powered Instacart to new heights earlier in the pandemic has cooled, meaning the platform needs to hash out fresh ways of driving revenue. Instacart recently cut its valuation by nearly 40%, per CNN. It confidentially filed to go public earlier in May.
