Instacart offers Google shopping ads for CPG partners

Company also begins piloting ads on its AI-powered smart carts
instacart x google

Grocery tech company Instacart and Google have revealed that Google Shopping ads are now accessible to Instacart’s advertising partners, using the company’s retail media data. 

This expansion enables consumer packaged goods (CPG) companies on Instacart, including Danone’s Oikos; Kraft Heinz brands Kraft, Lunchables, Oscar Mayer and Philadelphia; and Publicis Media’s CPG clients, to activate the Google Shopping ads, which are powered by Instacart’s first-party retail media data and closed-loop insights, to reach high-intent consumers searching on Google and get their products to those consumers in as fast as an hour.

Instacart provides unique rich insights on consumer shopping behavior from a catalog of more than 1.4 billion products at 1,400-plus retail banners. Google Shopping ads featuring the CPG brands on Instacart can now scale to consumers shopping across Google more than 1 billion times a day. With Instacart-powered Google Shopping ads, consumers can see ads for participating brands’ products as they search and click to complete a shopping trip on Instacart, with same-day delivery available.

READ: Instacart's IPO surges as the grocery delivery company goes from the supermarket to the stock market

“Instacart’s closed-loop platform and first-party retail media data are critical differentiators for CPG brands,” said noted Laura Jones, chief marketing officer of San Francisco-based Instacart. “Today, our team works with more than 5,500 brand partners to help them grow their businesses and drive incremental sales. With our collaboration with Google, we’re now able to layer our valuable retail media data over Google Shopping ads’ capabilities to enhance audience signals for our CPG partners’ campaigns off of Instacart. Over the last year, we’ve extended the power of Instacart Ads off-platform with a number of partners, and now we’re enabling our brand partners to reach the right audience while they search on Google and seamlessly drive them to purchase on Instacart. Every marketing dollar counts in today’s macroeconomic environment, and we’re pleased with the early pilot results – from return on ad spend to ‘new-to-brand’ sales – that we’re delivering for our partners.” 

Over the past 18 months, Instacart has augmented its full-funnel tool kit of advertising solutions with such new ad formats and features as pop-ups, shoppable video, promotions and impulse, in addition to new measurement capabilities. On average, Instacart Ads deliver more than 15% incremental sales lift, and in some cases twice that, for brand partners, according to the company.

The tech company also announced expanded advertising to Caper Carts, its AI-powdered smart carts.

Instacart will begin piloting ads on Caper Carts at Good Food Holdings banner stores in Southern California, bringing personalized and dynamic recommendations into the physical aisles of the grocery store.

READ: How embracing artificial intelligence can elevate the shopper experience

For the first time, Caper Carts will deliver personalized ads from Instacart’s CPG brand partners to the smart cart screens, with launch partners including Del Monte Foods, Dreyer’s Grand Ice Cream, and General Mills

That includes ads around new products and brands, deals and seasonal promotions, as well as personalized product recommendations based on shoppers' real-time behaviors or cart contents. 

Additional retail partners will roll out in the year ahead. Instacart expects to have thousands of Caper Carts deployed by the end of 2024.

With files from Canadian Grocer staff

This article first appeared on Progressive Grocer 

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