Instacart Signs Sprouts Farmers Market To Its Ad Platform, Retail Media Grows 30% YoY

Instacart is building out its retail network initially by adding retailers to its delivery cycle and then supporting retailers with ecommerce through advertisements services. 

Sprouts Farmers Market, a specialty food retailer, is using part of the Instacart Platform, Carrot Ads, to power its retail media network. Carrot Ads helps retailers establish and grow their retail media networks on owned and operated websites and apps. 

The announcement made Wednesday will enable brands that sell through Sprouts to target and optimize dedicated online campaigns specifically on the Sprouts. Marketers at brands also have access to metrics, such as performance, attributed sales and return on ad spend (ROAS) from campaigns running on the network.

Califia Farms, General Mills, Primal Kitchen, and Siete Family Foods are some the brands using Carrot Ads to reach and connect with consumers shopping at Sprouts online.



Halee Patel Newton, vice president of ecommerce at Califia Farms, believes its online ad campaigns now can seamlessly reach a broader audience and increase brand visibility, and aims to make managing multiple campaigns easier and less complex.

Brands today run Instacart Ad campaigns across more than 1,100 retailers. With today’s announcement, brands can add Sprouts' ecommerce to the strategy.

Instacart simplifies the operational complexity of managing campaigns across multiple Carrot Ads retailers by utilizing existing creative, targeting, and measurement tools.

Sprouts Farmers Market and Instacart have partnered since 2018, when they launched a same-day delivery across service in the Instacart App.

Retail media spend grew 30% year-over-year (YoY), paid search increased 4%, and paid social budgets shrank by 3%, according to Skai, an omnichannel marketing platform. 

Quarter-over-quarter (QoQ) spending was broadly within post-seasonal expectations, with spend falling 14% for retail media, 20% for paid search, and 25% for paid social.

Return on Ad Spend (ROAS) for retail media improved by 2% YoY, while Cost per Action (CPA) dropped 8%, indicating that despite rapid growth, retail media has not yet reached the point of diminishing returns for advertisers.

Skai analysis is drawn from about $9 billion in advertising spend over five quarters, comprising more than 3,000 advertiser and agency accounts across 40 vertical industries and more than 150 countries running on the Skai platform. These include Google, Microsoft, Baidu, Yandex, Yahoo! Japan, Verizon Media, Amazon, Walmart, Instacart, Criteo, Kroger, Apple Search Ads, Pinterest, Snapchat, Facebook, and Instagram.

This week Instacart also expanded its partnership with PetSmart, offering same-day delivery from the Instacart App and website from nearly 1,500 PetSmart stores across the U.S. The expansion into the U.S. follows the launch of the partnership to power same-day delivery from over 150 PetSmart stores in Canada.  

Consumers can now shop for thousands of PetSmart pet products including food, treats, toys, accessories, and large items like dog crates, cat towers, and aquariums, delivered to their doorstep in as little as an hour via Instacart.

PetSmart is using of Instacart's Big & Bulky fulfillment solution to ensure that even large items can be delivered for customers and shoppers. 

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