• by Laurie Sullivan  @lauriesullivan, August 15, 2024

Instacart has signed a deal to provide its customers with access to digital coupons through a program it has setup with cash-back rewards platform Ibotta.

Ibotta will serve as Instacart’s preferred third-party coupon provider for all eligible product categories available on the grocery technology company’s app and website. Instacart works with more than 6,000 CPG brands. 

“Our partnership with Ibotta is designed to benefit both consumers, by providing valuable savings, and CPG brands, by continuing to drive real business impact and consumer engagement," said Chris Rogers, chief business officer at Instacart.

This partnership for CPG brands creates an opportunity to reach consumers across Instacart’s marketplace of more than 1,500 retail banners with a footprint of more than 85,000 stores across North America. CPG brands also can continue to use Instacart’s high-performing retail media network to drive product discovery and sales by connecting to consumers at the point of purchase.

Ibotta has existing relationships with retailers such as Schnuck Markets, one of the markets that Instacart had said to have trialed its Connected Stores program in 2022. Original tests for this program ran in select Schnuck locations across the United States and Canada, with an expectation that the program also would run in Bristol Farms market in Corona Del Mar, California.

The Bristol Farms pilot would have consisted of six technologies, with a combination of online and in-store shopping. The idea was to create a personalized experience. It's not clear whether that program ever moved out of the planning stages, or if the coupons from the Ibotta partnership will become available through this program.

Instacart in late July announced new advertising solutions to help consumers discover brands and engage with them on the platform. The tools are intended to expand Instacart's advertising capabilities beyond traditional in-aisle placements, and help brands create more immersive experiences for consumers. 

Mondelez and The J.M. Smucker Co. were first to pilot Instacart’s latest suite of ad formats, designed to enhance in-aisle placements and fuel more contextual, convenient experiences for consumers.

For example, a consumer searching the produce aisle for spinach might be served a spinach lasagna recipe and be inspired to try it. These "out of aisle" placements create a dynamic shopping experience while helping brands showcase their products.

Emarketer reported that Instacart is set on nearly doubling retail media's share of its gross transaction value, from 2.8% in Q2 to 5%, citing CEO Fidji Simo on an earnings call.

"Its bullish approach to growing its retail media business has given rise to more creative ad offerings and partnerships (such as recent ties with YouTube and The New York Times, which it hopes will help it compete against other intermediaries," Emarketer wrote.