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Win Big on Instacart’s Self-Service Ad Platform

The one retail media platform we are (extremely) bullish on since last year’s shift to online grocery shopping is Instacart. They recently launched a self-service advertising platform that can help you promote your products. Want to know if Instacart is right for you? Join this session to discover how brands can succeed with the leader in online grocery.

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Win Big on Instacart’s Self-Service Ad Platform

  1. 1. 2021 Amazon & Retail Media Virtual Summit 2021 Amazon Advertising Strategies 10:00 – 10:45am PST | 1:00 – 1:45pm EST DAY 1 - WEDNESDAY, FEBRUARY 24TH Unpacking Amazon’s A9 Algorithm 10:50 – 11:20am PST | 1:50 – 2:20pm EST Amazon Creative that Converts 11:25 – 11:55pm PST | 2:25 – 2:55pm EST Advanced Amazon Operations 12:00 – 12:30pm PST | 2:00 – 2:30pm EST The Emergence of Retail Media 10:00 – 10:45am PST | 1:00 – 1:45pm EST DAY 2 - THURSDAY, FEBRUARY 25TH What’s Next in Walmart 10:50 – 11:20am PST | 1:50 – 2:20pm EST Win Big on Instacart 11:25 – 11:55pm PST | 2:25 – 2:55pm EST
  2. 2. Win Big on Instacart’s Self-Service Ad Platform The ‘Everything Offline’ Store
  3. 3. Today’s Logistics Analicia Santaella Partner Marketing Manager Recording & slides will be sent by end of week 01 Submit questions for live Q&A 04 03 Download relevant resources Log back anytime with same link 02 02 Join our poll questions 05
  4. 4. Some of our clients Our Recognition Tinuiti is the largest independent performance marketing agency across the triopoly.
  5. 5. Our Speakers ELIZABETH MARSTEN Senior Director, Strategic Marketplace Services AMANDA CAMPOS Senior Manager, Insights
  6. 6. Agenda ● Instacart Platform Updates ● Product Content Overview ● Instacart Advertising ● Live Q&A 6
  7. 7. Poll Question What did you do for Superbowl game day eats this year? ● There was a Superbowl? ● Ordered from Instacart ● Ordered pickup/curbside ● Went into the store
  8. 8. Instacart Platform Updates 8
  9. 9. Instacart | Confidential Instacart | Confidential INSTACART PLATFORM We are still seeing unprecedented growth 500% YOY Since the start of the pandemic, we've seen customer order volume surge by as much as 500% YoY. 5 YEARS We saw 5 years of growth in 5 weeks, and today our business has a new resting heart rate. 300% YOY We’re still growing with transaction volume - what we call GTV - up 300% year-over-year in December.
  10. 10. Instacart | Confidential INSTACART PLATFORM We’ve added Meijer, Family Dollar, and Walgreens and continue to be the “Go-to” Delivery Service Instacart has continued to partner with new retailers and expand over the course of the last year. Since the start of 2020, Instacart has partnered with more than 150 new retailers and welcomed more than 15,000 new store locations to the marketplace. We’re incredibly proud of these new and expanded partnerships, which include: Takeaway Our focus is grocery, but we are continuing to add more non-food selection for consumers across the marketplace. well as dozens of local grocers across America.
  11. 11. Instacart | Confidential INSTACART PLATFORM Our marketplace and our reach is bigger than ever before Fast delivery + ability to build the full basket 600+ Retail Partners 85%+ Available to US Households 45k Stores 500k Dedicated Shoppers 5.5k+ Cities 70%+ Available to Canada Households 24 States w/alcohol delivery
  12. 12. Instacart | Confidential INDUSTRY TRENDS Forecasted Growth and Size of Online Grocery Continues to Increase 30% of all food & bev sales by 2025 2019 4%-5% 2025 Up to 30% 2020 9-10% 2021 - 2024 Online grocery growth 15X faster than brick & mortar $143 B FMI / Nielsen forecast Source: JPMorgan Online Grocery Landscape Report, FMI & Nielsen Study
  13. 13. Instacart | Confidential ● IC $66M ● Advertiser X $17M ● IC $365M ● Advertiser X $92M Conversion Opportunity Buy Rate Opportunity INDUSTRY TRENDS Within Instacart Universe alone, we recognize a tremendous opportunity Instacart | Confidential B&M IC Cat Conv $/Customer Trips 100% 75% 50% 25% 0% 50 40 30 20 10 0 8 6 4 2 0 Advertiser X’s opportunity to drive conversion and buy rate is 45x a single share point gain
  14. 14. Instacart | Confidential JANUARY YOY SEARCHES Searches for home cooking seeing highest growth among top volume searches Top 25 Search Categories by Search Volume
  15. 15. Instacart | Confidential JANUARY YOY SEARCHES COVID, personal care, baking, and Valentine’s Day related searches growing the fastest YoY Jan’21 Top 25 Search Categories by YoY Growth
  16. 16. Instacart | Confidential While it isn’t as big as last year, we are still seeing customers lean into non-alcoholic beverages in January Alcohol $ Share of total Beverages (‘Share of Stomach”) 37% Dec 2020 30% Jan 2021 28% Jan 2020 DRY JANUARY Dry January is still a thing despite COVID lock downs
  17. 17. Instacart | Confidential Instacart | Confidential Note: Alcohol declined -26% month over month Note: Alcohol grew 250% vs. last Jan Healthier categories growing vs. last month Probiotics, Smoothies (especially Green Blends), Sports Drinks, Chai Tea, Fruit/Veg Blends (with Strawberry very popular), and Coconut Water Compared to January 2020, customers increasingly drinking more unique replacements for Alcohol: Apple Cider, Tonic Water, Lemon/Limeade DRY JANUARY Customers trading in alcohol for healthier options
  18. 18. Instacart | Confidential SUPERBOWL REGIONAL RECAP Tampa Bay fans hydrated with healthy beverages while Kansas City fans focused on snacks Category % Basket Penetration Index to Total US Basket Penetration Dips/Spreads: Dips 14.7% 149 Salty Snacks: Tortilla Chips 16.8% 145 Prepared Foods: Potatoes 12.4% 128 Beverages: Soft Drinks 21.0% 123 Salty Snacks: Tortilla Chips 16.8% 145 Salty Snacks: Potato Chips 13.6% 120 Category % Basket Penetration Index to Total US Basket Penetration Beverages: Ready to Drink Tea 6.4% 147 Prepared Foods: Sides 5.5% 120 Dips/Spreads: Dips 11.7% 119 Beverages: Water 12.7% 117 Prepared Foods: Potatoes 10.9% 113 Salty Snacks: Potato Chips 11.9% 105 Salty Snacks: Tortilla Chips 11.7% 101 Data reflects key categories sorted by index to Total US basket penetration with basket penetration >1%, for 1/31/20 - 2/5/20 VS
  19. 19. Poll Question Which Superbowl team’s fan menu do you prefer? ● Kansas City ● Tampa Bay
  20. 20. Product Content Overview 20
  21. 21. Content on Instacart What if a product isn’t showing up on Instacart at a retailer that it should be? The product might not be listed in the file that the retailer is sending to Instacart. First best step is to connect with your retailer POC on what the included assortment is. What if my content is outdated? Images: Start with your Instacart Account Manager to understand if your CSP is one of the preferred CSPs Instacart works with. If not, contact your retailer point of contact and ask for a correction. Or manually submit correct images via Jotform so Instacart can hide the outdated content. What if my item has no image associated with it on Instacart? Your products are not eligible for featured product placements without an image. As much as we all like a good mystery, it’s really a poor user experience. Where does Instacart content come from? Content Service Providers (CSPs) Retailer provided inventory files delivered to Instacart daily. Jotform submission process - you’ll need an Instacart Account Executive for this one.
  22. 22. Instacart Advertising Growing on the Everything Offline Store 22
  23. 23. The Opportunity Today ● Volume. Volume. VOLUME. ● Pre-qualification of the user ● Demand level is literally off the charts ● Effective, second price, CPC auction ● Powerful habit building repeat users (Express), repeat purchasers
  24. 24. Things to Consider Before Getting Started ● The Everything Catalog ● Walk the store ● Prioritizing SKUs and information, imagery ● Number of retailers: mass or specialty ● Number of stores ● Remember - physical items sitting on a shelf ● Items are available, consistently ● Number of items available across retailers/stores Content Distribution Catalog Size
  25. 25. Focus on Featured Products
  26. 26. Featured Product Placements - Browse Homepage Department
  27. 27. Featured Product Placements - Search Search In-Grid Results Item Detail Page
  28. 28. Featured Product Placements - Personalized Cart Checkout Buy It Again / My Items
  29. 29. Featured Products Details ● Second price auction - similar to Amazon and Google, meaning you pay .01 more than the next highest bid ● Able to bid on different child SKUs (sizes, flavor variants) ● Exact match keywords only today ● 14 day click attribution, tied to the last clicked UPC ● All UPCs have a history across the Instacart network, 24-48 hrs after campaign creation, organic search terms will auto populate in the account, cutting down on initial test and learn time ● Each UPC has its own quality score - so the more popular variants will appear more often (for example a 16 oz size instead of a 32 oz size)
  30. 30. Paced Spending ● Uses the campaign end date to determine a daily budget and serves accordingly ● Can run out earlier in the day as a result (most Instacart shoppers place orders later in the day) ● Daily missed impressions report from Instacart Balancing the Budget Max Impressions ● Budget that serves impressions continuously until the lifetime budget amount is hit. No minimum budget required, but recommend at reviewing how many SKUs you have (including variations), how many store locations and what your historical sales have been via Instacart without advertising and applying how much you’d like to grow that. Rule of thumb - $500/SKU/month at minimum.
  31. 31. Campaign Structure & Bidding ● A granular campaign structure is best ○ Campaign - Ad Group - Product(s) - Keywords ○ Group by category at the campaign level ○ Ad group by product (can be a single SKU) with variations (like sizes, flavors) ○ Bid at the keyword and/or ad group level ● Bid strength - at the ad group and keyword levels ○ Default or Override ○ Strong or weak (green, yellow, red) ○ Suggested maximum bid
  32. 32. Keywords ● Exact match only ○ Head and long tail terms (yes including plurals) ○ Your brand terms ○ Competitor brand name terms ● Set Up ○ Campaign (based on budget needs) ○ Ad groups ■ Competitor terms separated out ■ Control at ad group bid level ■ Ad group bid influences placements that are not search (browse, personalized)
  33. 33. Resources Instacart Advertising Blog on Medium Instacart Ads: Everything You Need to Know (Tinuiti Blog) Help Center in Instacart Ads Platform
  34. 34. Schedule Your Consultation with an Instacart Expert
  35. 35. Q&A
  36. 36. Thank you!