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To say Instacart’s evolution has been impressive would be an understatement. Especially given the astronomical growth of e-grocery. Putting it into perspective, according to Mercatus, the online grocery industry could grow by more than 20% by 2025. This, along with recent headlines and our insight at MPS, explains why Instacart isn't exclusive to grocery anymore. Here we share what’s next for the platform and why brands and advertisers in all industries should take note.

Instacart Opens Its Platforms To More Retailers 

Although Instacart began as a grocery delivery service, the needs and wants of consumers have changed. As a result, its delivery options are growing beyond grocery into office supplies, sporting goods, cosmetics, over-the-counter essentials, and more.

One example that has dominated the news cycle within the last several months is Instacart’s partnership with Michaels. Now, via Instacart’s app, shoppers can get same-day delivery of their arts and crafts. Other major retailers named as partnering with Instacart include Bed Bath & Beyond, Dick’s Sporting Goods, and Sephora. 

What Does This Mean? 

Instacart's expansion is a natural result of increased demand and changes in consumer behavior. However, it's much more than that, it's a strategic business move. Now that its platform caters to a variety of retailers and categories, Instacart can earn more advertising dollars. 

While Instacart Advertising is just about one year old, the benefit goes well beyond revenue for the platform. The quality and quantity of shopper data gained since its launch have been momentous in attracting new advertisers. And, with this trajectory, the company has shared its hiring plans and future investment in its advertising offering.

Instacart’s Future And What Makes It Different 

Executives at Instacart have stated they believe grocery delivery is here to stay, and we agree. We also believe speed and convenience will be a driving factor of success for those that can offer this to their customers. The proof lies within the data. For example, Instacart shoppers can choose between a range of delivery windows, most of which are within at least six hours of ordering. However, the 'two-hours or less' windows are most popular, according to Instacart. 

When comparing Instacart to competitors, the difference is its relationship with retailers. The platform doesn't have to compete with retailers, they work together in a mutually beneficial partnership. Through these partnerships, Instacart gains access to a wealth of e-commerce data. Information spans endless UPCs throughout most US cities and much of Canada for a total of more than 600 retailers in 45,000 physical locations.

This level of insight provides a compelling value proposition for brands to continue to invest in Instacart. Our advertising teams at MPS have seen strong scale and RoAS across search campaigns. And we expect this to increase as Instacart expands its network and offers more advertising options.

Final Thoughts 

Over the last year, even prior to the pandemic, our clients upped their interest and investment in Instacart. It’s a staple across our roster of brands now that Instacart isn't exclusive to grocery anymore. And we believe it will continue to rise the ranks of powerful advertising networks. That said, we highly encourage brands of all kinds to look into what’s possible for them on Instacart. Being an early adopter of Instacart and its advertising options will surely pay off in the long run. If you could use the support of a strategic partner, schedule a free consultation. And, as always, we’re here to answer any questions about Instacart and other marketplaces.


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