Roku and Instacart Announce Partnership to Pair TV Streaming and Online Grocery Delivery for Marketers

Rhea-AI Summary

Roku (Nasdaq: ROKU) has partnered with Instacart to enhance the effectiveness of TV advertising for consumer-packaged goods (CPG) brands. This collaboration focuses on leveraging first-party data to assess the impact of Roku ads on e-commerce sales. Initial results indicate that individuals exposed to Roku ads purchased significantly more advertised products on Instacart compared to average users. For example, a personal care brand's campaign led to 60% of its buyers being new customers, while a beverage brand saw a 70% higher repeat purchase rate among new buyers. The partnership aims to facilitate a shift of ad spending towards streaming TV, tapping into Instacart's extensive grocery delivery network, which serves over 95% of U.S. households.

Positive

• Partnership with Instacart enhances Roku's advertising capabilities.
• Data shows significant increases in new customer acquisition and repeat purchases from ads.
• Expands Roku's ability to measure advertising effectiveness in e-commerce.

Negative

• None.

Advertising partnership will unlock first-party data to measure the impact of TV ads on e-commerce purchases

SAN JOSE, Calif.--(BUSINESS WIRE)-- Today, Roku (Nasdaq: ROKU) announced a partnership with Instacart to help consumer-packaged goods (CPG) advertisers make TV advertising more relevant and performance-driven across the entire streamer’s journey. Across select pilot partners, results showed that on average, people who saw the ad on the Roku platform purchased more of the advertised products on Instacart versus the average customer*.

The partnership brings together viewership data from Roku, the #1 TV streaming platform in the U.S., Canada, and Mexico**, and insights from Instacart, the leading grocery technology company in North America, for marketers to measure whether streamers are purchasing products on Instacart after seeing an ad on the Roku platform. By matching this data with Roku’s first-party data, marketers can quantify the impact of TV streaming advertising on product sales – while keeping customer data from Instacart and Roku secure.

In a pilot with a personal care brand, 60% of those who purchased the brand after seeing its campaign on the Roku platform were new to the brand. Also, those who were exposed to a beverage brand’s Roku campaign and were new purchasers of the brand had a 70% higher repeat rate than the average new-to-the-beverage-brand buyer on Instacart*.

The relationship will help accelerate the shift of ad dollars into streaming TV and retail media. Just as more people have started streaming TV over the last year, more now rely on online grocery delivery. Today, Instacart is available to over 95% of households in the U.S. and Canada. Time spent with TV streaming is also growing – Nielsen reports that in July 2022, time spent streaming TV was larger than broadcast or cable for the first time.

“Our goal is to help marketers get more of what they love in TV,” said Alison Levin, Vice President of Ad Revenue and Marketing Solutions, Roku. “Our partnership with Instacart makes it easier to measure actual return on advertising spend in e-commerce and meet consumers where they are – streaming TV.”

The new capability represents Instacart’s first TV streaming measurement partnership and will offer advertisers consumer purchase insights from its Marketplace, which includes more than 1,100 retail banners and more than 80,000 stores in North America. 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 Ads, we're committed to providing CPG brands with the ad products, automation, insights, and measurement they need to help them meet their objectives and prove the impact of their investment,” said Ali Miller, Vice President of Ads Product at Instacart. “We’re proud to partner with America’s #1 TV streaming platform, Roku, to give CPG brands even more insights to help them enhance and optimize their campaigns across streaming TV. As we look ahead, we’ll continue investing in integrations and insights across every touchpoint of the consumer journey to help CPGs drive and measure results.”

This partnership expands Roku’s efforts to partner with commerce and retail leaders to provide first-of-their-kind full-funnel solutions that will provide greater accountability in TV streaming. With the addition of Instacart, advertisers can access even more e-commerce data from grocers and drug stores, alcoholic beverages, apparel, beauty, home and office, and pet care products.

To learn more about the partnership, please visit our blog.

*based on results of pilot campaigns measured between January and December 2022. Prior results do not guarantee future outcomes.

**based on hours streamed, December 2022, Hypothesis Group

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; and the parties’ entry into a partnership. 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, 2022, and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022. Copies of reports filed with the SEC are posted on Roku’s website and are available from Roku without charge.

Roku is a registered trademark, and Roku TV is a trademark of Roku, Inc. in the U.S. and in other countries. Trade names, trademarks, and service marks of other companies appearing in this press release are the property of their respective holders.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230426005702/en/

Media Contacts

Roku

Sarah Saul

AdsPR@roku.com

Instacart

Pierce White

pierce.white@instacart.com

Source: Roku, Inc.

FAQ

What is Roku's new partnership about?

Roku has partnered with Instacart to help CPG advertisers measure the effectiveness of TV advertising on e-commerce purchases.

How does the Roku and Instacart partnership affect advertising?

The partnership enables advertisers to use combined viewership and purchase data to quantify the impact of streaming ads on product sales.

What were the results of the pilot campaigns in the Roku and Instacart partnership?

In pilot campaigns, 60% of buyers for a personal care brand were new customers, and a beverage brand saw a 70% higher repeat purchase rate among new buyers after exposure to Roku ads.

How does this partnership align with current advertising trends?

The partnership aims to shift advertising dollars towards streaming TV, leveraging the growing reliance on online grocery delivery.

What is the significance of first-party data in this partnership?

First-party data allows marketers to securely measure the return on investment from streaming ads, making campaigns more relevant and performance-driven.