Instacart and Roku Expand Advertising Partnership with New Shoppable Formats and Targeting

Rhea-AI Summary

Instacart (NASDAQ: CART) and Roku (NASDAQ: ROKU) have expanded their advertising partnership, introducing new shoppable formats and targeting capabilities for CPG advertisers. The collaboration aims to make TV moments shoppable for high-intent customers, offering:

1. Shoppable ads on Roku with direct purchase options via Instacart
2. Home Screen ad formats on Roku linking to Instacart purchases
3. Enhanced targeting using Instacart's first-party data

The partnership has shown strong results, with 52% of Roku streamers who purchased advertised products via Instacart being new-to-brand. This expansion builds on their initial 2023 collaboration, which focused on measuring TV ad impact on e-commerce purchases.

Positive

• Expansion of advertising partnership between Instacart and Roku, potentially increasing revenue streams
• Introduction of new shoppable ad formats and targeting capabilities, enhancing advertiser offerings
• 52% of Roku streamers purchasing advertised products via Instacart were new-to-brand customers
• Instacart partners see an average sales lift of 15% (sometimes double) when advertising on the platform
• Roku's large user base of 83.6 million households provides significant reach for advertisers
• Instacart's availability to over 98% of households in the U.S. and Canada offers extensive market coverage

Negative

• None.

Insights

Marketing Analyst

This expanded partnership between Instacart and Roku represents a significant advancement in shoppable TV advertising. The integration of Instacart's e-commerce capabilities with Roku's streaming platform creates a powerful ecosystem for CPG advertisers. Key benefits include:

• Direct path to purchase from TV ads via text or QR codes
• High-impact shoppable placements on Roku's Home Screen
• Enhanced targeting using Instacart's first-party purchase data
• Closed-loop measurement linking TV ad exposure to sales

The 52% new-to-brand customer acquisition stat is particularly impressive, showing the partnership's effectiveness in reaching new audiences. For CPG brands, this offers a unique opportunity to drive both awareness and immediate sales through a single channel. The ability to measure TV ad impact on e-commerce purchases addresses a long-standing challenge in advertising attribution.

However, the success of this initiative will depend on consumer adoption of shoppable TV features and the seamlessness of the purchasing experience. It's also worth noting that while this partnership offers significant benefits, it may also increase advertising costs due to the premium nature of the targeting and shoppable features.

E-commerce Strategist

This partnership marks a significant shift in the e-commerce landscape, blending content consumption with instant purchasing capabilities. The integration of Instacart's vast retail network with Roku's extensive streaming audience creates a powerful platform for CPG brands to drive sales directly from TV advertisements.

Key strategic implications include:

• Shortened customer journey from ad exposure to purchase
• Improved ad relevance through Instacart's purchase behavior data
• Potential for higher conversion rates due to targeted, actionable ads
• New revenue streams for both Instacart and Roku

The average 15% sales lift for brands advertising with Instacart is a strong indicator of the potential impact. This partnership could accelerate the trend towards 't-commerce' (television commerce), potentially reshaping how consumers interact with TV advertising.

However, challenges may arise in terms of user experience and privacy concerns. The success of this initiative will depend on striking the right balance between convenience and intrusiveness in the streaming experience. Additionally, the effectiveness of this approach across different product categories and price points remains to be seen.

SAN FRANCISCO, Oct. 9, 2024 /PRNewswire/ -- Together, Instacart (NASDAQ: CART) and Roku (NASDAQ: ROKU) are making TV moments shoppable for high-intent customers. In an expanded partnership, the leading grocery technology company in North America and the #1 TV streaming platform in the U.S. are providing the massive scale and valuable insights that consumer-packaged goods (CPG) advertisers need to connect with relevant audiences. With interactive ad formats, enhanced targeting capabilities, and closed-loop measurement, these brands can now get more from their advertising efforts—and consumers are one step closer to effortless and personalized shopping experiences while watching TV in the comfort of their homes.

Instacart and Roku first partnered in 2023 to offer advertisers insights to measure the impact of TV ads on e-commerce purchases. Numerous brands including Josh Cellars have leveraged the Instacart x Roku advertising partnership. This collaboration is showing strong results that demonstrate the power of integrating streaming and shopping, translating advertisers' media efforts to sales. On average, across multiple advertisers, 52% of streamers who purchased a product they saw advertised on Roku via Instacart were new-to-brand.

The new Instacart and Roku advertising capabilities now available to all advertisers include:

• Shoppable ads: On Roku, CPG advertisers can create a direct path to purchase from their ad creative via text messaging or QR code, with Instacart as the landing destination. With Instacart, people watching Roku can go from seeing an ad to getting the advertised products in their hands in as fast as an hour - shopping from their favorite retailers.
  
  
• Home Screen ad formats: Advertisers can now make targeted, high-impact shoppable placements on the Roku Home Screen that drive users to purchase those products on Instacart. This premium real estate enables brands to capture the attention of viewers as they decide which shows they want to watch on Roku.
  
  
• Targeting: Brands can also now better reach consumers on Roku by delivering more relevant ads based on their Instacart purchase behavior. Advertisers can layer their Roku campaigns with Instacart first-party data to build category-based audience segments, both granularly (e.g. consumers who have bought their category and brand, lapsed users, or consumers new to their category or brand) as well as more broadly (e.g. consumers who have purchased kids products or zero sugar products), depending on their campaign objective.

"We are proud to expand our partnership with Roku, creating an advertising experience that helps people see an ad and get that product from their TV screen to their doorstep in as fast as an hour," said Tim Castelli, Vice President of Global Advertising Sales at Instacart. "With our combined scale and advanced data insights, we're delivering precision targeting, highly relevant ads, and measurable outcomes in a privacy-compliant way to drive performance at a new level. Together, we are transforming how CPGs connect with consumers, making every ad not just an impression, but a direct pathway to purchase."

"In 2023, we partnered with Instacart to unlock TV measurement. Now, a year later, we're turning our attention to what every modern CPG marketer needs: massive scale and full-funnel solutions," said Jay Askinasi, SVP, Head of Global Media Revenue and Growth at Roku. "Advertisers can utilize even more of the Roku experience, from Home Screen ad placements to interactive shoppable ads. With the click of the Roku remote, users can make a purchase directly from their TV screen."

"We are constantly testing new channels as part of our marketing efforts to meet our customers where they are. Combining Roku's scale & innovative shoppable ad units with Instacart's first-party data & insights, we can now reach a massive TV streaming audience and offer them relevant and engaging ad experiences." – Dan Kleinman, Chief Brand Officer Deutsch Family Wines & Spirits.

Roku, the #1 TV streaming platform in the U.S., is streaming to 83.6 million households. Instacart has more than 1,500 retail partners on its platform and is available to over 98% of households in the U.S. and Canada. Today, Instacart partners with over 6,000 brand partners to offer full-funnel advertising solutions. Brands advertising with Instacart see an average sales lift of 15% – and sometimes double that.

About Instacart
Instacart, the leading grocery technology company in North America, works with grocers and retailers to transform how people shop. The company partners with more than 1,500 national, regional, and local retail banners to facilitate online shopping, delivery and pickup services from more than 85,000 stores across North America on the Instacart Marketplace. Instacart makes it possible for millions of people to get the groceries they need from the retailers they love, and for approximately 600,000 Instacart shoppers to earn by picking, packing and delivering orders on their own flexible schedule. The Instacart Platform offers retailers a suite of enterprise-grade technology products and services to power their e-commerce experiences, fulfill orders, digitize brick-and-mortar stores, provide advertising services, and glean insights. With Instacart Ads, thousands of CPG brands – from category leaders to emerging brands – partner with the company to connect directly with consumers online, right at the point of purchase. With Instacart Health, the company is providing tools to increase nutrition security, make healthy choices easier for consumers, and expand the role that food can play in improving health outcomes. For more information, visit www.instacart.com/company, and to start shopping, visit www.instacart.com.

For anyone interested in becoming an Instacart shopper, visit https://shoppers.instacart.com/.

About Roku, Inc.
Roku pioneered streaming on TV. We connect users to the content they love, enable content publishers to build and monetize large audiences, and provide advertisers with unique capabilities to engage consumers. Roku TV™ models, Roku streaming players, and TV- related audio devices are available in various countries around the world through direct retail sales and/or licensing arrangements with TV OEM brands. Roku-branded TVs and Roku Smart Home products are sold exclusively in the United States. Roku also operates The Roku Channel, the home of free and premium entertainment with exclusive access to Roku Originals. The Roku Channel is available in the United States, Canada, Mexico, and the United Kingdom. Roku is headquartered in San Jose, Calif., U.S.A.

This press release contains "forward-looking" statements that are based on our beliefs and assumptions and on information currently available to us on the date of this press release.  Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include but are not limited to those related to the features, benefits, growth and reach of the Roku platform; trends related to TV streaming, advertising, retail media and grocery delivery. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Important factors that could cause our actual results to differ materially are detailed from time to time in the reports Roku, Inc. files with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2023, and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024. Copies of reports filed with the SEC are posted on Roku's website and are available from Roku without charge. 

Roku and Roku TV are trademarks or registered trademarks of Roku, Inc. in the US and in other countries. Tradenames, trademarks, and service marks of other companies appearing in this press release are the property of their respective holders.

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SOURCE Maplebear Inc. dba Instacart

FAQ

What new advertising capabilities are offered in the Instacart and Roku partnership?

The expanded partnership offers shoppable ads on Roku with direct purchase options via Instacart, Home Screen ad formats on Roku linking to Instacart purchases, and enhanced targeting using Instacart's first-party data.

How effective has the Instacart (CART) and Roku advertising partnership been so far?

The partnership has shown strong results, with 52% of Roku streamers who purchased advertised products via Instacart being new-to-brand customers.

What is the average sales lift for brands advertising with Instacart (CART)?

Brands advertising with Instacart see an average sales lift of 15%, with some experiencing up to double that amount.

How many households can Instacart (CART) reach through its platform?

Instacart is available to over 98% of households in the U.S. and Canada, partnering with more than 1,500 retail partners on its platform.