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New Commerce Commerce: All Things Instacart

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Getting Started Marketing on Instacart

Instacart is booming. It experienced exponential growth in 2020 and 63% of Instacart customers plan to use the service even more in the future. This translates to major opportunities for brands of all shapes and sizes. Instacart offers new ways to market your brand, connect with customers, and efficiently drive sales. But, how do brands get started with Instacart? How do you harness the power of Instacart to promote your brand or product? We have you covered. Join Catalyst, Instacart, and Pacvue as we share key considerations for a rock-solid Instacart marketing strategy.

In this three-part presentation, we’ll cover:

- The Landscape: We’ll explore today’s online grocery landscape, highlighting the consumer trends fueling Instacart’s ascent. Discover how consumers use Instacart today, the changing demos of Instacart users, the connection between online grocery and in-store sales, and more.

- Instacart 101: We’ll provide an overview of the Instacart Advertising platform and paid media offering, including tips and best practices for strategy and execution. We’ll also discuss the importance of product detail page (PDP) optimization for visibility and conversions.

- Leaning into the Instacart Opportunity: We’ll share real-life examples of how advertisers are leaning into the Instacart opportunity to acquire customers and drive sales, and how they are thinking about Instacart in a post-COVID world.

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New Commerce Commerce: All Things Instacart

  1. 1. 1 Session 2: Getting Started Marketing on Instacart THE NEW COMMERCE CONFERENCE WELCOME TO
  2. 2. 2 https://bit.ly/32hWHeW THIS PRESENTATION ORIGINALLY AIRED AS A WEBINAR. THE RECORDING IS AVAILABLE HERE:
  3. 3. What is the New Commerce Conference? • Digital commerce thought-leadership to prepare marketers for the changing world of commerce. • Insights, tips, & recommendations to better understand today’s consumer and maximize online & in-store sales. • Expert perspective from industry trailblazers. The New Commerce Conference Schedule: 1 – 2:30 pm ET every Weds. Next Up: October 14th: • The Age of Omni-Commerce & What It Means for Marketing Strategies (presentation) • Less Silos, More Symbiosis: Omni-Channel Strategies to Drive In-Store & Ecomm Sales (panel) Register: https://www.catalystdigital.com/the- new-commerce-conference/ 3
  4. 4. Hosted By 4 CatalystDigital.com
  5. 5. Housekeeping & FAQs 5 Will recording be shared? Yes! Will slides be shared? Yes! How do I ask a question? Type your question in the "[Enter question for staff]" field. Only the presenters see the question. Questions will be addressed at the end of each session. Other questions? Email info@catalystdigital.com.
  6. 6. GETTING STARTED MARKETING ON INSTACART
  7. 7. • The state of online grocery • Instacart: The user experience • Instacart: The advertising & data offering • Planning considerations • Maximizing performance • Audience Q&A Agenda 7 SPEAKERS Melissa Burdick, Co-Founder & President, Pacvue Suzanne Skop, Director, Agency Partnerships, Instacart Kerry Curran, Executive Director, Marketing & Growth, GroupM Services & Catalyst Meghan Lavin, Director of Marketing, Catalyst Chris Narduzzo, Sales Director Pacvue
  8. 8. 8 Why Instacart & Why Now THE STATE OF ONLINE GROCERY
  9. 9. of internet users will make at least one online grocery order through a digital channel in 2020 Online Grocery is Booming 9 https://content-na1.emarketer.com/nearly-half-of-internet-users-have-purchased- groceries-online 53%
  10. 10. Instacart Quickly Adapted to Meet Consumer Needs 10 500% Increase in order volume 35% Increase in average basket size 15x Number of Care agents 1500+ New pickup locations 100+ New or expanded partners (400+ retailers) 4k+ New stores (30K stores) 2x+ Number of shoppers (500K shoppers) Consumer Growth Retailer Growth Operational Growth Stats reflect growth during first half of 2020 Source: Instacart
  11. 11. Instacart’ customers are moms, dads, busy heads of households, seniors, students, and more. • Instacart’s customers are primarily female (82%) between the ages of 25-44 (48%) and 55-75 (32%) • Nearly 40% of customers are parents (37%) • More than 50% of customers have full-time jobs (57%) • Nearly 15% of customers are retired (13%) Instacart is for Everyone 11 Source: Instacart
  12. 12. 63% of Instacart users plan to use the service more in the future. 12 Source: Catalyst & Kantar: The State of Ecommerce Landmark Study, 2020
  13. 13. Quick Pivots to Capitalize on Demand • Rapid growth in online grocery has required reprioritization of marketing efforts to take advantage of shifting demand • Opportunity for brands to redeploy budget and re-evaluate their online grocery strategy to capture and own market share
  14. 14. Tossing Legacy Grocery Strategies • Online grocery platforms are different from a grocery store planogram • Getting shoppers to build online baskets is more challenging since they are not walking through the store to find key products • Brands are trying to understand online shopping behavior to influence brand consideration
  15. 15. A Unique & Timely Opportunity For Brands of all Shapes & Sizes • Low CPCs (compared to other ecommerce platforms) • Opportunities for advertisers above/beyond traditional grocery & CPG: • Alcohol & spirits • Health & beauty brands (Instacart recently added Sephora to its marketplace) • OTC • Household categories • Opportunities for advertisers with highly perishable products who have not had a strong ecommerce position in the past.
  16. 16. Brands who invest early will have the advantage of increased visibility in their category, and the opportunity to establish a customer relationship on the platform and earn that customer’s loyalty. Rachel Dalton, Director Ecommerce & Omnichannel Insights, Kantar Source: Catalyst & Kantar, The State of Ecommerce 2021, Original Research
  17. 17. 17 INSTACART: THE USER EXPERIENCE
  18. 18. Instacart Confidential How Does Instacart Work: Placing an Order 18 Enter your zip code & select a retailer in your neighborhood Shop that retailer & add items to your cart Select a Time for Delivery Place order & pay Delivery fee waived with an Instacart Express membership $3.99 $3.99 $3.99 $3.99 $3.99 $3.99 $3.99 $3.99 $3.99
  19. 19. Instacart Confidential How Does Instacart Work: Delivering an Order 19 Instacart shopper picks items from selected store & communicates with the customer Instacart shopper pays for items in store with an Instacart credit card or Apple or Google Pay Instacart shopper delivers to your doorstep or use contactless delivery Some items were not at Safeway. Instead, I found these replacements! Wasa Sourdough Swedish Crispbread
  20. 20. Instacart Confidential How Does Instacart Work: Adding Items to Cart 20 • Over time, consumers become more reliant on their personalized list of previously purchased items • By a customer’s 10th order, conversions increasingly come from the “Your Items” aisle
  21. 21. 21 INSTACART: THE ADVERTISING & DATA OFFERING
  22. 22. Instacart Confidential Keys to Winning in Online Grocery 22 Prepare for a non-linear customer decision journey Don’t rely on in-store activations to translate online & prepare to build for digital shelf space Build online content Bring the store into the customer’s home Deploy an “always on” strategy Ensure you get in front of customers new to this channel
  23. 23. Instacart Confidential Instacart Product Offering 23 Featured Products Hero BannerDelivery Promotions Coupons
  24. 24. Instacart Confidential Featured Product: Benefits 24 Ensure your products are displayed where customers are looking Top Rows = Prime Shelf Space More than half of conversions from search take place in the first row Search is Foundational Nearly 20 searches happen per order
  25. 25. Instacart Confidential Featured Product: Consumer Experience 25 Put your products in front of customers throughout the entire shopping experience Home Page Department Search Note that this view is zoomed out Item Details Post Checkout In “Your Items” While Browsing While Searching Personalized After Ordering
  26. 26. Instacart Confidential26 Featured Product: Benefits Efficacy Against Goal: Featured Product Sales Growth Category Share Generate Trial Consumer Awareness Events Price Maintenance Featured Product is the best tactic to grow your category share: • Secure prime shelf placement to increase exposure & drive conversion of your products • In Search, stand out from thousands of items & boost your results to the top of the digital shelf (More than half of conversions from search take place in the first row) • Only pay for results due to cost-per-click pricing
  27. 27. Instacart Confidential27 Delivery Promotion: Consumer Experience Offer customers free delivery if they purchase $x of your brand Your own curated department landing page to encourage basket building that can be accessed via... • Instacart’s Homepage • Relevant departments while browsing • Full screen takeover when you add an item • Full screen takeover at checkout Customers can stack promotions to increase savings ($5 off for each additional promotion redeemed) Buy $10.81 more, get Free Delivery*
  28. 28. Instacart Confidential28 Delivery Promotion: Benefits • Delivery Promotions are promotions that drive consumers to build their basket • Instacart baskets are as much at 60% bigger when a customer redeems a Delivery Promotion • Tactic can be used to drive Sales volume • Delivery Promotions can be used to promote a theme: • Like the end cap in the grocery store, Delivery Promotions can be used to build brand equity & as a way to suggest trial (e.g., New Year New You) Efficacy Against Goal: Delivery Promotion Sales Growth Category Share Generate Trial Consumer Awareness Events Price Maintenance
  29. 29. Instacart Confidential Coupons: Consumer Experience 29 • Customers can shop from the coupons homepage, within a department, or within a search • Coupons can be single or 2-unit
  30. 30. Instacart Confidential30 Coupons: Benefits • Opportunity to bring an existing offline coupon strategy online with Instacart coupons • Two types of controls that can support an existing coupon strategy: • If TPR or other offer is passed through via the retailer, the Instacart coupon is automatically suppressed • If a customer redeems a coupon, that specific coupon isn’t visible again for 30 days Efficacy Against Goal: Coupons Sales Growth Category Share Generate Trial Consumer Awareness Events Price Maintenance
  31. 31. Instacart Confidential31 Hero: Consumer Experience Department banner with custom creative that directs customers to a promotion page
  32. 32. Instacart Confidential32 Hero: Benefits • Bring your key UPCs together in one place for a curated shoppable experience • Create awareness around a specific event or brand campaign • Opportunity to take over a department & can be used to target customers outside of your category Efficacy Against Goal: Hero Sales Growth Category Share Generate Trial Consumer Awareness Events Price Maintenance
  33. 33. Instacart Confidential Recommendations for Getting Started 33 Start with Featured Product: • Prioritize winning share & quickly gaining more sales by covering all UPCs • Easiest to quickly set up a campaign From there, add in more campaigns to take advantage of the synergies of running multiple campaigns at once: • Ex: Featured Products that also have a Coupon
  34. 34. Instacart Confidential Coupon + FP Promote Trial in Ice Cream 34 New Customer (1st basket) Purchases w/FP + Coupons Ice Cream Product Running FP & Coupon Running FP only NewCustomerPurchases
  35. 35. 35 INSTACART: INSIGHTS & ANALYTICS
  36. 36. Instacart Confidential Instacart Provides Custom Closed Loop Reporting 36 Year End vs YAGO $ Sales Unit Sales Deliveries Spend per Customer Units per Customer Deliveries per Customer Spend per Delivery Units per Delivery Current $45.6M 10.3M 6.2M $21.46 4.9 2.9 $7.34 1.7 Year Ago $23.8M 5.2M 3.2M $19.94 4.4 2.7 $7.33 1.6 % Change 91.5% 96.5% 91.2% $1.52 0.5 0.2 $0.01 0.1 Featured Product & Delivery Promotion Spend Sales on Instacart
  37. 37. Instacart Confidential37 Data & Insights: Recent ICIP Launch How it’s delivered: • Equitable tiering structure that rewards working media investment with greater access (no wasted dollars) • Automated reporting • Consultative services for top tiers • Organized across all vectors of Instacart's platform (assortment, distribution, sales, customers, and baskets) The Instacart Customer Intelligence Platform is the only capability to educate consumer brands about the largest ecommerce grocery data set in the US
  38. 38. 38 What’s Next INSTACART ROADMAP
  39. 39. Instacart Confidential Advertising Focus Areas for 2021 39 FP Campaign Optimization Tools New Controls for Existing Products 1 2 Addressing Unmet Need with Product Innovation 3
  40. 40. 40 Setting Your Brand Up for Success INSTACART: PLANNING CONSIDERATIONS
  41. 41. • Reset expectations; online and in store grocery are not the same • Identify the right stakeholders and integrate internal teams for collaboration • Ensure adequate inventory levels for online sales Brands Need to Adopt a New Mindset & Infrastructure 41
  42. 42. When it comes to Instacart, the savviest brands are hard at work figuring out how to win the first basket. Pre-loaded shopping lists drive repeat purchase 42
  43. 43. 43 First Basket Influences 40% of online purchasers use search at the time of purchase 41% said PDPs had the biggest influence on their purchase 30% say search has the biggest influence on their purchase
  44. 44. Integrated Search Strategies Drive Scale DRIVING ONLINE SALES Upper Funnel: SEO Strategy is brand focused, to increase market share Lower Funnel: SEO strategy is product focused to increase ROI Paid Search: Focused on targeted exposure and efficiency Integration: Tying paid and organic strategies to drive the flywheel 44
  45. 45. • Rank at top of the search results in every major category • Improve competitive landscape and performance monitoring • Incorporate SEO strategies into PDPs • Leverage PIM to allow for frictionless content updates directly to Instacart • Add content for as many relevant fields as possible • Leverage competitor and market trends data with social listening to better understand audience demand on Instacart • Write compelling and useful copy for your PDP to be educated store clerk to help aid buying decisions • Ongoing content health monitoring and improvement • Integrate keyword and product performance data in Featured Brands and PDPS Opportunities for Instacart Marketing 45
  46. 46. Keyword Strategy 46 Keyword Targeting Ability to target users across different steps in the decision-making process “Tailgate” “Party” “Afterschool Snack” “Chips” “BBQ Chips” “Lays BBQ Chips” • Influence relevant audiences earlier in the funnel by centering around their needs, rather than specific products • Bid on high search volume terms that are high intent but brand agnostic • Go on the offensive and conquest competitor keywords to steal market share
  47. 47. Ongoing Optimization for Organic Results Ongoing keyword research • Spot Checking UPC’s • Competitive Monitoring • New Keyword Additions • Update UPCs • Keyword Testing • New Promotions/ Deals Prep • Competitor Monitoring Instacart offers 11+ text fields and 6+ image fields that can be populated with wine detail data to aid in visibility, relevance, and conversion Copy updates • product listing title • key product features • product description • images • backend search terms • text match relevancy Product details • Wine Varietal & Vintage • Marketing Info • Lifestyle • Country, Region of origin • State • Flavor • Scent 47
  48. 48. • Depending on product category, (Front/Back, Top/Bottom) imagery may not be sufficient • Consider using infographics or creative means of conveying product value to differentiate similar products • In mobile, images are more prominently displayed. Incorporating Media that Conveys Product Value 48
  49. 49. Expanding Keyword Targeting for Featured Products • Conquesting – Competitor keywords and product pages • Brand – Owning our own product display so no one else can. Usually high ROAS but obviously less incremental • Non-Brand – Broad, scalable category keywords. 60% or so of the budget usually gets spent here • Misspellings – Lower cost, expanded reach • Conquesting – Competitor keywords and product pages • Cross-product – Inter-category keywords • Events – Heavy up budgets for holidays, special events (ex. Cinco de Mayo)
  50. 50. Test and Learn for Success Clear Evaluation Be clear on test objectives, evaluation criteria & possible outcomes Risk Estimation Accurately predict deviation from existing performance to weigh opportunity cost Scale of Opportunity Map out use case / impact to other channels, campaigns and brands within the portfolio Manage variables All tests should have a control, limit the number of variables and achieve statistical significance Fail Quickly Budget and time allocated should be limited to what is required for stat sig; maximizing the number of possible tests Communicate Ensure testing plans and results are communicated quickly across the brand organization, channel leaders and agency partners 50
  51. 51. $4.16 ROAS Instacart Success 51
  52. 52. 52 Maximizing performance INSTACART 101
  53. 53. Solutions to Help Optimize Performance 53 Customizable Reporting View at an aggregate level, or use tags to break down by product Campaign Optimization 5 levels of automation tailored towards goals & keyword research based on performance Change Log Event-based log to measure impact of changes​
  54. 54. Instacart UI vs Pacvue 54 Instacart Native UI Pacvue UI Customizable dashboard report ✓ Scheduled reports ✓ Bulk keyword/item/campaign changes ✓ Metric based filters ✓ Featured Product Campaigns ✓ ✓ AI Optimization ✓ Daypart capabilities ✓ Change history log ✓ Share of Voice data ✓ Keywords Analytics tool ✓ Platform bidding modifiers ✓ ✓
  55. 55. First Mover Advantage 55 Cheap Clicks Competitor CPCs as low as $0.15-0.20 Shopper Lists By customer’s 10th Instacart order, 25% of all conversions are from Your Items list Organic Visibility Long-term benefits of improving how brand shows up on search results Platform Expertise Testing and learning first- hand on platforms
  56. 56. Recommendations 56 Leverage Cross- Platform Data Amazon and Walmart data can be helpful in building keyword segment lists. CPCs are currently low – as low as 10% of what we see on other platforms. Act Fast to Get First Mover Advantage It is important to get on shoppers’ past purchase lists – by a customer’s 10th order, 25% of all conversions are from the ‘Your Items’ aisle. Utilize Hyper- Segmentation Use multiple ad groups to break out targeting by product tier and price. You can have up to 1,000 keywords per ad group.
  57. 57. Maximize ROAS with Product / Club SKU Segmentation 57 • For Club-specific SKUs, set bids at maximum possible within target costs. • Run through Club SKU campaign budget first, where you have guaranteed ROAS. • Club will likely have different competitors than other retail. Bid aggressively on competitor terms that are not advertising on Club to maximize market share. (Pacvue Share of Voice can help uncover this.)
  58. 58. Hourly Changes to Competitive Landscape 58
  59. 59. Implementing Dayparting 59
  60. 60. Using Default Bids to Negatively Target 60 cookies chocolate cookies low-fat cookies Oreo cookies
  61. 61. How to Get Started with Instacart Campaigns 61 31 542 Structure campaigns by product segments and price tiers Use your top- performing search queries, not keywords, from other platforms Set a bids at a high “green” bid strength for the most important keywords Set low default bids for the keywords you want to exclude Refine with dayparting and bid modifiers to reach conversion goals
  62. 62. Case Study: Personal Health & Wellness Brand 62 In the first month of using Pacvue for Instacart: 4x increase in ROAS 38% higher conversion rate 56% lower CPCs
  63. 63. 63 Kerry Curran Kerry.Curran@GroupM.com Q&AINFO@CATALYSTDIGITAL.COM Suzanne Skop Suzanne.Skop@instacart.com Melissa Burdick Melissa@pacvue.com Chris Narduzzo ChrisN@pacvue.com
  64. 64. The New Commerce Conference October 14th, 1pm – 2:30pm ET The Omnichannel Imperative • The Age of Omni-Commerce & What It Means for Marketing Strategies (presentation) • Less Silos, More Symbiosis: Omni-Channel Strategies to Drive In-Store & Ecomm Sales (panel) • Speakers: Georgia-Pacific, Urban Skin Rx, Criteo, & more Register: https://www.catalystdigital.com/the- new-commerce-conference/ Next Up: 64 Women in Ecommerce November 12th, 4pm – 6pm ET Uniting ecomm’s movers & shakers for a night of conversations, connections, & more • Panel discussions featuring Pacvue, General Mills, Kimberly-Clark, Walmart Media Group, Walker Edison Furniture, & more • Virtual networking Register: https://www.catalystdigital.com/women- in-ecommerce/

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