Instacart Teams Up with Google to Boost CPG Ad Sales

Instacart Teams Up with Google to Boost CPG Ad Sales

Published: January 10, 2024

Instacart has teamed up with Google in a move to expand its ad-selling program by targeting off-platform shopper groups for specific CPG brands on its platform.

The partnership allows Google Shopping to make use of Instacart's retail media data to place ads more accurately, increasing same-day conversions.

"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," Instacart CMO Laura Jones stated in a press release.

Although Instacart has expanded the reach of its ads beyond its platform through various partnerships throughout 2023, this will be the first time that it will use brand-specific ads.

How Does the Partnership Work?

Instacart’s partnership with Google will enable CPG brand partners to connect with their target audience and guide them to make purchases on the grocery shopping platform.

For instance, an Instacart user searching on Google for cream cheese will be shown a Philadelphia ad.

When clicked, users will be redirected to the Instacart app where they can purchase Philadelphia cream cheese with same-day delivery.

This move will allow Instacart to expand its consumer base by attracting new users, but will also strengthen its CPG brand connections.

"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," Jones added.

The brands that will pilot the Instacart-powered Google Shopping ads include Danone’s Oikos, Kraft, Lunchables, Oscar Mayer, Philadelphia and Publicis Media's CPG clients.

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