As grocery brands seek more personalized and targeted ways to reach shoppers, Instacart is using smart cart ads to enable in-store digital marketing.
The grocery aggregator on Monday (January 8) tested ads on the screen of Caper Cart, a smart shopping cart that enables real-time targeted messaging, at its Bristol Farms store in Southern California. The company announced that more grocery stores will open in the future. The company said this opens up advertising opportunities such as recommending Dreyer's Grand Ice Cream (one of the first advertisers to join the pilot) to shoppers who add an ice cream cone to their cart. .
“The acquisition of Caper was central to our strategic evolution to support retailers and brands not only online but in-store as well,” Instacart CEO and Chairman Fidji Simo said in a statement. “Today, we are taking the next step in this journey to further enable thousands of consumer goods brands to connect with high-minded customers with measurable results, across all the ways people choose to shop. We are excited to introduce a new advertising solution that will
Instacart said in a news release that it plans to have “thousands” of Smart Carts in stores by the end of the year.
Aggregators aren't the only grocery tech companies targeting this type of in-store advertising opportunity. Guy Mordock, CEO of Cust2Mate, A2Z Smart Technologies Corp.'s flagship smart cart product, said in a June interview with PYMNTS that in the future carts will be built with “data-driven insights.” ” will be able to be generated. It runs “on-cart advertising and retail media” based on that data.
Grocery stores are also looking for more in-store digital technology. For example, a PYMNTS Intelligence study, “Innovation Requirements for Large Retailers: Convenience and Personalization,” produced in partnership with ACI Worldwide, found that 79% of grocers believe that if access is not provided, consumers will indicated that they are very likely or very likely to go to a retail store. Barcode and QR code scanner app.
Additionally, as regulations around how companies use consumer data evolve, demand for targeted advertising opportunities is increasing and options that do not rely on this type of information are being sought. , said Nick Minnick, vice president of strategic partnerships at contextual commerce platform Chicory. he told PYMNTS in a fall conversation.
“We're seeing increased interest in some of the solutions we've built,” Minick said. “You can target campaigns based on the content that users are viewing, whether it’s a specific type of recipe or a delivery.” Ads that target specific ingredients…a cookie-free way for shoppers This is so that you can reach the. ”
For Instacart, this type of move creates an opportunity to grow revenue through higher-margin products than its core grocery delivery business, given the high costs of fulfillment. Indeed, across the aggregator industry, major companies are looking for ways to expand their marketing operations and drive advertising sales to increase profitability, with consumer packaged goods (CPG) giants targeting targets to secure spending. Among other efforts, the company offers sponsored listings on its platform.
