Meet the Marketplaces Part 3: Instacart

Instacart is an online grocery delivery and pickup service that operates as a marketplace connecting customers with local stores and personal shoppers. Through the Instacart marketplace, users can browse and purchase groceries, household items, and other products from various retailers in their area. For brands to advertise or appear on Instacart, the products must be available in physical grocery or retail stores that have partnered with Instacart.  

Why Should Brands Use Instacart to Reach Their Consumers?

Instacart has established itself as a trusted and reliable platform for online grocery shopping. By selling on Instacart, brands can leverage the reputation and credibility of the platform, which can enhance customer trust and confidence in their products. Instacart also has a substantial customer base consisting of individuals who prefer the convenience of online grocery shopping. Online grocery shopping has experienced significant growth in recent years, and this trend has further accelerated due to the COVID-19 pandemic. Selling on Instacart allows brands to adapt to changing consumer behavior and cater to the increasing demand for convenient, contactless grocery shopping experiences. Brands can also leverage the existing inventory and fulfillment processes of the participating retailers to fulfill orders placed through Instacart, meaning that selling on Instacart doesn’t require a complete overhaul of existing operations.

Benefits of Instacart:

• Expanded Customer Reach & Visibility: By partnering with Instacart, retailers can reach a broader customer base and tap into the growing market of online grocery shoppers and attract new customers who prefer the convenience of home delivery or pickup services.

• Operational Efficiency: Instacart handles the logistics of order fulfillment, including picking, packing, and delivery, which relieves the operational burden on retailers. Retailers can leverage Instacart’s infrastructure and expertise in last-mile delivery to ensure efficient and timely order fulfillment.

• Access to Data and Insights: Instacart provides retailers with valuable data and insights on customer preferences, shopping habits, and sales performance. Retailers can leverage this data to optimize their product offerings, marketing strategies, and inventory management, ultimately driving more informed business decisions.

What Types of Brands Should Consider Instacart:

• Grocery Food Brands: This includes both large-scale and local specialty brands. Selling on Instacart allows these brands to offer their products to customers who prefer the convenience of online grocery shopping.

• Consumer Packaged Goods (CPG) Brands: CPG brands encompass a wide range of products, including food and beverages, personal care items, household essentials, and more. 

• Local and Artisanal Brands: These brands can leverage Instacart’s platform to gain exposure, build brand recognition, and compete with larger brands.

• Specialty and Niche Brands: Brands that offer specialized or niche products, such as organic or gluten-free foods, vegan products, gourmet items, or ethnic cuisines, can benefit from selling on Instacart. The platform allows them to target specific customer segments and cater to their unique preferences.

• Health and Wellness Brands: Brands that focus on health-conscious or wellness-oriented products, such as natural and organic foods, supplements, vitamins, and personal care items, can find a suitable audience on Instacart. Customers looking for these types of products often appreciate the convenience of ordering them online.

• Beverage Brands: Whether it’s alcoholic beverages, non-alcoholic drinks, or specialty beverages like coffee or tea, beverage brands can expand their reach and offer their products to a broader customer base through Instacart.
• Pet Food and Supplies Brands: Brands that specialize in pet food, accessories, and supplies can benefit from selling on Instacart, as pet owners often appreciate the convenience of having these items delivered to their homes.

Other types of brands can also find value in selling on Instacart. The platform offers a wide range of product categories, allowing different brands to cater to the diverse needs and preferences of online grocery shoppers.

Advertising on Instacart with aiCommerce

Instacart can provide brands with user data such as purchase history, preferences, and demographics to create highly targeted advertising campaigns. By leveraging this data, brands can display their ads to specific customer segments that are most likely to be interested in their products.  The platform also provides an environment where brands can advertise their products in a relevant context. Since users are actively browsing and purchasing groceries, brands can strategically place their ads alongside related products or in search results, increasing the chances of capturing customers’ attention at the right moment.  It’s worth noting that specific advertising options and features may evolve over time, so it’s recommended for brands to stay up to date with Instacart’s advertising offerings.

aiCommerce can help your brand grow on Instacart!  Our team of experts will analyze your current performance and determine the solutions best fit to your brand’s needs in order to see growth. Read the below case study for more information on how aiCommerce can help your brand grow!

A brand was building out their wholesale channel and being added to additional grocery stores. They were using Instacart but with flatlined performance they wanted more…and that is where aiC came in. 

The aiCommerce team implemented several solutions, including:

1. Re-evaluating keywords, match types, and ad copy to maximize ROI.
2. Restructuring the account to increase control.  This was done by eliminating strictly auto-campaigns as the only ad type.
3. Launching Category and Display campaigns to target complimentary categories.
4. Strategically optimized spend to maximize revenue.

The results of these implementations over the course of 6 months were amazing!

1. The company saw a 31% increase in total sales
2. The company decreased ad spend by 40%
3. The company saw a 120% increase in ROAS

By advertising on Instacart, brands can gain increased visibility for their products, which can lead to higher brand recognition and exposure.