As shoppers adapt to an omnichannel marketplace, wherein shopping capabilities are offered in-store and online, retailers and CPG manufacturers must work hard to capture consumer attention.
This is where retail media steps in, a type of digital advertising that allows brands to promote products wherever consumers interact with the service while on their shopping journey.
As companies seek alternate ways to market to potential consumers, opportunities and paths to profitability in the space are slated to grow: Coresight Research estimates that the U.S. retail media industry will grow to $106.4 billion by 2028 – up from $46.3 billion in 2023 for an 18.1% compound annual growth rate.
At the year’s start, the industry anticipated retail media to take over grocery experiences in 2024. We are now seeing its promise in action.
Instacart, Roku Deliver Shoppable Ads
In an expanded partnership, Instacart and Roku recently revealed they’re leveraging interactive ad formats, enhanced targeting capabilities, and data tracking to improve their retail media capabilities.
The duo first partnered in 2023 to give advertisers insights to measure the impact of TV ads on e-commerce purchases. They found that, on average, 52% of streamers who purchased a product they saw advertised on Roku via Instacart were new-to-brand.
Now, however, the expansion boasts the following:
- Shoppable ads: On Roku, CPG advertisers can create a direct path to purchase from their ad creative via text messaging or QR code, with Instacart as the landing destination.
- Home Screen ad formats: Advertisers can now make targeted, high-impact shoppable placements on the Roku Home Screen that drive users to purchase those products on Instacart.
- Targeting: Brands can also now better reach Roku consumers by delivering more relevant ads based on their Instacart purchase behavior. Advertisers can layer their Roku campaigns with Instacart first-party data to build category-based audience segments.
The next generation of retail media is marked by not only its presence in new channels, like streaming service ads, but also in the integration of data to create more personalized experiences.
“We are proud to expand our partnership with Roku, creating an advertising experience that helps people see an ad and get that product from their TV screen to their doorstep in as fast as an hour,” said Tim Castelli, VP of global advertising sales at Instacart, in a statement. “With our combined scale and advanced data insights, we’re delivering precision targeting, highly relevant ads, and measurable outcomes in a privacy-compliant way to drive performance at a new level.
“Together, we are transforming how CPGs connect with consumers, making every ad not just an impression, but a direct pathway to purchase,” he said.
Grocery Delivery Giants Compete on Retail Media
Instacart, however, isn’t the only grocery delivery service offering integrated advertising capabilities. DoorDash and Grubhub owner Just Eat Takeaway all recently unveiled their own investments to carve out their own places in the space.
At the top of the month, DoorDash accelerated opportunities for CPG manufacturers on their platform to advertise to their active userbase. This included offsite capabilities, which allowed brands to leverage DoorDash data to connect with shoppers across digital platforms, sponsored brands sections in-app to give consumers the opportunity to discover brands through advertisements, and a partnership with advertising firm Skai to offer omnichannel DoorDash advertisements.
“These new capabilities are the latest addition to a robust product suite that drives incremental sales for our partners,” said Katie Daleo, senior director of ads & promotions at DoorDash, in a statement.
Just Eat Takeaway and e-commerce firm Rokt, on the other hand, recently partnered globally to launch retail media capabilities on the grocery delivery service’s suite of delivery apps, including U.S.-based Grubhub, U.K.-based Just Eat, and Germany-based Lieferando.
“We’re excited to leverage Rokt’s technology as we expand our retail media program to the checkout page and enable endemic and non-endemic advertising partners to share compelling messages…,” said Rachel Gómez, director of retail media at Just Eat Takeaway.com, in a statement.
Alongside Instacart’s cross-platform retail media announcement was an in-store update to its AI-enabled shopping cart technology Caper Carts. The modifications present shoppers with promotional deals through gamified “treasure hunts,” as well as rewarding repeat visits tied to the grocer’s loyalty program.
The service touts a new channel to expand advertising that can provide location-based ads depending on the location of the smart cart in the store.
The platform features specific CPGs as shoppers walk the aisle.
The Food Institute Podcast
Restaurant results for the second quarter weren’t stellar, but people still need to eat. Are they turning to their refrigerators, or are restaurants still on the menu for consumers? Circana Senior Vice President David Portalatin joined The Food Institute Podcast to discuss the makeup of the current restaurant customer amid a rising trend of home-centricity.
