Instacart’s ad revenue was up 18% in the final quarter of 2023 to $871 million.
The online grocery shopping app also reported modest growth in orders, which rose to 70.1 million – a year-on-year increase of 5%, as well as a 5% year-on-year growth in growth transaction value (GTV).
Driving success. Instacart attributed its ad revenue success to the popularity of its shoppable display and video ad formats, coupled with effective initiatives that highlight value to advertisers.
Why we care. The success of Instacart’s shoppable display and video ad formats suggests that advertisers are getting good results, so it may be worthwhile considering implementing these ad products into your campaign strategy. However, be aware that as Instacart gains more popularity, ad prices could increase.
Investment rate. The advertising and investment rate remained steady at 3.1% compared to the same period last year. However, it’s important to note that the rate increased by 47 basis points in the previous year due to the introduction of shoppable display and video.
Takeaways. Additional key findings from the report include:
What Instacart is saying. Fidji Simo, Chief Executive Officer, described Instacart as “the best advertising platform.” He said in a statement:
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Business email address Subscribe Processing...Deep dive. Read Instacart’s full Q4 2023 earnings report in full for more information.