Instacart Advertisers Gain New Ad Options with Retailer Targeted Demand

By Tinuiti Team

Instacart advertisers have been given greater control over their ad targeting options with the launch of Retailer Targeted Demand (RTD), a Carrot Ads Solution that’s part of the Instacart Platform. The RTD feature enables Instacart advertisers to run their ads on specific retailer-controlled sites that are part of the 1200+ retail banners that make up the full Instacart marketplace.

RTD Sponsored Products ads are displayed on the chosen retailer’s website in placements similar to those on the Instacart App—including being shown to shoppers while browsing, searching, and after checkout—and leverage the same auction dynamics.

Retailer Targeted Demand Benefits for Advertisers

The overarching benefits RTD offers are enhanced flexibility and control over how and where advertisers choose to run their marketing campaigns, providing more room for strategic experimentation through their existing Instacart account.

Let’s consider a few ways RTD might impact an Instacart advertising campaign strategy

Reach Low-Funnel Shoppers on Retailer Sites

Scott Glaser, Associate Director, Marketplace Strategic Services at Tinuiti, is excited about the opportunity to target additional customers that wouldn’t typically be reachable through Instacart, noting:

“Our clients have great products at great prices on these websites, and we can now—more effectively—get these products in front of the right consumers. Shoppers on these retailer websites may have retailer loyalty, and we can now target them on the retailer’s website through Instacart.”

Scott Glaser

Retailer-Specific Ad Strategies

There are many reasons a brand might want to increase their visibility, consideration and conversions from a specific retailer, and RTD gives them the opportunity to do so. Some possible scenarios include:


Carrot Ads Benefits for Stores and Brands

Seamlessly create ad campaigns for Instacart and retailer sites banner

The brands advertising on retailers’ websites through Instacart Platform aren’t the only ones who benefit from these new capabilities—the stores themselves have a lot to gain as well.

As shared by Marketing Dive following Instacart’s 2022 announcement of Instacart Platform:

“The new Carrot Ads enables retailers to leverage Instacart’s ad tech, ad products, engineering, sales and data insights to monetize their owned and operated e-commerce properties.”

Sprouts Farmers Market is among the first grocery stores to harness the capabilities of Instacart’s Carrot Ads Solution to launch their own retail media network. As Instacart shared in the press release for the launch:

“Today’s news is also a game-changer for the thousands of brand partners already advertising via Instacart. They can leverage the best of Instacart Ads to develop targeted Sprouts campaigns to drive meaningful growth for their business and stay ahead in today’s dynamic retail landscape.”

Halee Patel Newton, VP of Ecommerce at CPG brand Califia Farms, spoke to the other side of this win-win scenario in the press release:

“We’re thrilled to continue partnering with Instacart and Sprouts because we recognize that many people seeking delicious, dairy-free products are turning to both online platforms…Thanks to Carrot Ads, our online ad campaigns can seamlessly extend across both sites, which allows us to reach a broader audience and increase our brand’s visibility. This approach makes managing multiple campaigns easier and less complex as we scale.”


Getting Started with Instacart Retailer Targeted Demand

Tinuiti has a long history of success managing retail media advertising, building retailer relationships and driving strong results. Our team leverages these new opportunities and learnings to implement unique and proactive strategies that are tailored to each brand and retailer. Want to learn more about advertising on Instacart and beyond? Contact us today to chat with an expert!

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