Instacart Ads: Everything You Need to Know in 2020

Instacart advertising was created as a new method to help marketers reach shoppers when they’re ready to place an order for groceries and other household items.

Let’s talk about groceries, more specifically Instacart and Instacart ads. This is an online store that allows customers to shop from local grocery stores from the comfort of their own home. Pretty cool, right? To take part in the service, you don’t have to be a member. However, for those who choose to sign up for a membership such as Instacart Express, prices start at $99 per year or $9.99 per month. 

Unlike other grocery delivery services, fresh produce isn’t found in mass warehouses. Insead, it’s found in other well-known grocery stores such as Kroger, Shaw’s and Costco. Part-time shoppers for Instacart are sent in to pick the food in the order to eventually deliver to the customer’s door. 

Due to the coronavirus surging for much of this year, this is a service that is more sought after than ever before. This is so desirable because it allows shoppers to get the food they need from a safe distance. In fact, the service reported a 74% surge in business at the beginning of April. Even before the effects of the global pandemic, the online grocery industry was expected to grow from 3% to 30% of total grocery retail by 2025, according to an FMI & Nielson study

As Instacart capitalizes on this new windfall of business, they’ve also been able to unleash their self-serve ad platforms in order to connect brands with shoppers. This is a result of the demand of the company’s services continuing to climb. Since, they’ve had an explosive year of business from the world’s current events, we’ll go into detail to see exactly how they’ve been able to pivot so successfully.    

Now Let’s Shift to Instacart Advertising

Instacart advertising was created as a new method to help marketers reach shoppers when they’re ready to place an order for groceries and other household items. With so many hopping onto the online shopping train, this has proven to be a growing market with no foresight of slowing down anytime soon. 

This has also demonstrated to the business that there are many long term clients in the pool of this increase, which guarantees stability for the sudden growth. By hiring an Instacart ads agency to create Instacart ads and a platform that aligns with the company itself, this gives the company the ability to leverage itself and compete with other media outlets such as Amazon, CVS Pharmacy, Kroger, Target and Walmart

Amazon alone has reported an increase in ad spending, which has jumped to $3.9 billion (44%) from the previous quarter. 

How Do Instacart Ads Work?  

Spanning over 5,500 cities in the US, Instacart has worked hard and expanded greatly to make sure that their online business is easily accessible. They want their Instacart ads to yield the same results. In three easy steps, this is how to get started with advertising on the platform. 

  1. Choose your best-selling products. By selecting what products to promote, they’ll be given extra love by consumers when they appear in prominent locations.
  1. Pay for the performance. Start by setting a budget that works for the business needs. Only pay when users engage with those products. 
  1. Sit back and learn what works. Once the campaign begins, review the results and then edit for better performance down the line. 

Instacart Ads Strives to Achieve the Following Outcomes

By following the above three steps Instacart aims to obtain the following goals. All three are main ways to improve a business and grab the proper exposure needed for secured success. 

Attract customers: With every advertising campaign it’s important to attract the right customers who are going to click the item, place it in the cart and ultimately check out with the completed purchase. 

Obtain the results that Matter: When using Instacart ads, marketers will be able to target a range of business goals such as growth in sales, category shares and brand awareness. All are vital in making a business thrive.   

Why Should Brands Hop Onto This Opportunity? 

Brands need to move into this new opportunity for their business. As demonstrated, Instacart is one of the few companies that have been able to pivot and elevate themselves in a way that has been able to secure themselves in the midst of a global pandemic. 

With an increase in online grocery shopping data, there have been new trends that have been analyzed, an outcome of new consumer preferences as well as updated consumer behavior to match. Instacart has been able to deliver all of these and have a much more profitable business here to stay as the result. 

When a brand does decide to advertise with Instacart, it’s able to get ahead of their own competition and pinpoint their most valuable shopper audiences. They can then apply their results to the following. 

  • Bidding 
  • Discounting 
  • Audience targeting strategies 
  • Reaching consumers with the highest LTV  

These are the Companies That Have Tested the Idea

In the past few months, a few major companies took the leap in testing the ad platform. Procter & Gamble, Unilever and PepsiCo are among those who have used it, purchasing media and managing campaigns. Brands can also set their own goals and ad budgets and manage bid prices. 

This is a service that is available from nearly 350 retailers that include Costco, Gelson’s and Kroger. These retailers among others have a combined total of over 250,000 stores. This is huge for anyone that wants to become involved in such a heavily growing market.   

Our Final Thoughts

Online shopping is set to continue to expand long after the pandemic becomes only a memory. As the trend begins to near its peak, it’s important as a marketer and a brand leader to begin dabbling into the opportunities both Instacart and other platforms begin to unleash as times continue. Without opting to try this new way of marketing/advertising, companies are left without the additional exposure they may need to prove successful. 

Have you thought of initiating your own ads through Instacart? Get ahead of the trends and succeed with new modern business resulting from this year’s massive changes in lifestyles. Let us know your thoughts in the marketing world or if you’ve already experimented with services with the use of Instacart ads.   


Recent Posts

What is Retail Media?

Well the best way to define retail media is that it’s a form of marketing to consumers at or right near their point of purchase or choice set right between other competing brands or products.

Send Us A Message