Instacart is an online store that lets customers to shop from local grocery stores in the comfort of their own home. You don’t have to be a member to participate in their service. However, for those who sign up for an Instacart Express membership, prices start at $99 per year, or $9.99 per month.
Unlike other grocery delivery services, fresh produce isn’t found in big warehouses. Insead, it’s found in other well-known grocery stores like Kroger, Shaw’s, and Costco. Part-time shoppers for Instacart are sent in to pick up the grocery order, and deliver it to the customer’s door.
Due to the coronavirus surging for much of 2020, this is a service that is more sought after than ever before, as it allows shoppers to get their food 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 released their self-serve ad platforms to connect brands with shoppers, as a result of a surging demand for the company’s services. Instacart has had an explosive year in business, so we’ll examine how they’ve been able to pivot so successfully.
Now Let’s Shift to Instacart Advertising
Instacart advertising was created as a new way for marketers to reach shoppers when they’re placing an order for groceries and household items. With so many people starting to shop online, this has become a growing market, with no indication it will slow down any time soon.
This has demonstrated that there are many long-term clients in Instacart’s pool, providing stability for sudden growth. By hiring an Instacart ads agency to create Instacart ads and a platform that aligns with the company, companies can leverage itself and compete with other media outlets such as Amazon, CVS Pharmacy, Kroger, Target and Walmart. Amazon alone 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 U.S., Instacart has worked hard to make sure that their online business is accessible. The companys expects their Instacart ads to yield the same results.
This is how to get started with advertising on the platform in three steps:
- Choose your best-selling products. Best-selling products are given extra love by consumers when they appear in prominent locations.
- Pay for the performance. Start by setting a budget that works for the business needs. Only pay when users engage with those products. B
- Analyze results and learn what works. Once the campaign begins, review the results and then edit for better performance in the future.
Instacart Ads Strives to Achieve the Following Outcomes
By following the previous three steps, Instacart aims to obtain the following goals. Both are main ways to improve business and grab the exposure needed for 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 complete the purchase.
Obtain the results that Matter: With Instacart ads, marketers can target a range of business goals like sales growth, category shares, and brand awareness. Each of these are vital parts of a thriving business.
Why Should Brands Hop Onto This Opportunity?
Brands should consider Instacart as part of their business because it’s one of the few companies that has pivoted and elevated themselves in the midst of a global pandemic.
With the increase in online grocery shopping data, new trends have been analyzed, with outcomes that indicate new consumer preferences, as well as updated consumer behavior. Instacart has delivered these points, and has a much more profitable business as a result.
When a brand advertises with Instacart, it can outpace its competition, and pinpoint its most valuable shopper audiences. They can then apply their results to the following.
- 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 began testing the ad platform. Procter & Gamble, Unilever and PepsiCo are among the companies that have purchased media and managed ad campaigns with Instacart. With this platform, brands can also set their own goals, create ad budgets, and manage bid prices.
The service is available for nearly 350 retailers, including Costco, Gelson’s, and Kroger. These retailers, among others, have more than 250,000 stores combined. It’s a huge win for anyone seeking involvement in a rapidly growing market.
Our Final Thoughts
Online shopping should continue expanding long after the pandemic becomes a memory. As the trend nears its peak, it’s important as brand leaders that we assess which opportunities are available with Instacart and other platforms. Without trying these modern methods for marketing and advertising, companies might miss out on exposure they need to be successful.
Have you considered initiating your own campaigns through Instacart? Are you trying to stay ahead of trends with a new business strategy? Have you had to make changes to account for this year’s pandemic? Let us know your thoughts on marketing in modern times, or if you’ve already experimented with services with the use of Instacart ads.