Digital Trend_POV

1. DIGITIAL DIGEST #2 SHILPA MAZUMDER
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2. WHAT IS A DIGITAL
TREND?
Digital Trend is the key
changes in the strategic
direction of the digital
marketing landscape that
impact the way marketers
should interact with their
target audience. This
includes the evolution of
marketing techniques,
consumer sentiments and
underlying technologies.

4. CURRENT DIGITAL
TRENDS
 Facebook May be Peaking. Really!
 Instagram is a hit with the kids…
 Chatbox successfully dominating
customer service
 Video is no longer an option
 Online grocery delivery genie is
out of the bottle
 Interactive content

5. THE MOST PROFITABLE DIGITAL
TREND IN THE YEAR 2020 IS ONLINE
GROCERY DELIVERY SERVICES…
The coronavirus pandemic has brought online
grocery—a promising but formerly niche
industry—to the fore. The combination of
shoppers' interest in avoiding public places,
government orders to stay at home, and the
continued need for groceries and essential
goods has made online grocery delivery
services from retailers like of Walmart,
Amazon, Target, and Instacart indispensable.

6. “Shifts that we thought
would take as many as five
years are occurring in five
months…”
As a result of the COVID-19 outbreak, 9% of
Canadians are now shopping for food online for the
first time, according to the same survey. It may not
seem like many, but keep in mind that 1.5% of all food
sales were conducted online before the crisis. That
percentage had already begun to grow higher, but
COVID-19 will likely accelerate the pace. In the United
States, some changes are already happening.
Downloads of Instacart, Walmart’s grocery app have
increased 218%, 160%, and 124% respectively in 2020
as compared to a year ago.
(Daniel Keyes, 2021)

7. ONLINE GROCERY DELIVERY
AND CONSUMER BEHAVIOR
According to the statistical office of the European
Union, the number of consumers aged 16 to 74
having purchased goods and services for personal
use through the Internet has incessantly risen, from
30% in 2007 to 53% in 2015 (Eurostat, 2015). Most
e-consumers are content with their shopping: 70%
claimed they do not have any problems with
purchasing online. In 2015, the most popular
products bought online were clothes and sporting
goods (chosen by 60% of e–buyers),
accommodation and travel (52%), and household
goods and toys (41%). The largest number of e-
buyers is found in the United Kingdom (81% of all
persons aged 16 to 74 order items online), Denmark
(79%), and Luxemburg (78%). Online shopping is
more popular among younger generations (16-44
years old) than those older (45-74 years old;
Eurostat, 2015).

8. ONLINE GROCERY DELIVERY SERVICES
AFFECTING CONSUMER BEHAVIOR:
• Concern regarding the types of products
and services consumers will be seeking
out as they deal with the continued
desire to connect with others, and stick
out the final leg of pandemic isolation
and boredom
• More than 50% of customers reduced
their frequency of visiting physical
stores, 80% reduced their occasions of
out-of-home consumption and 39%
bought more frequently from online
shopping channels
• The categories of online purchasing
products are changing gradually in the
towards of concerning health more than
before
• The type of goods being searched and
purchased has changed drastically since
the appearance of Covid-19, mostly
about hygiene goods (76%), travel plans
(63%, though 22% of it was canceled),
home-cooking and home-eating which
are also more often consumed (63%)
(Numerator, Jan’21)

9. WHY ARE CONSUMERS SATISFIED WITH
ONLINE GROCERY DELIVERY SERVICES:  Affluent consumer with a general level
of economic well-being are less risk
averse, and more innovative and
impulsive. These shoppers prefer that
online delivery are always open and
find shopping from home relaxing,
easy, and time saving
 Consumer finds it convenient to
access, search, evaluation, transaction,
and possession
 Consumers can avoid crowds, serve no
waiting times, and have access to
products that are not normally
available in everyday shops
 Consumer who doesn’t own a car, or
lack physical strength to carry heavy
items can get everything delivered at
the doorsteps
 Consumer with special needs or
disability can avoid the daily hustle of
lifting and carrying groceries.
(Numerator, Jan’21)

10. HOW DID THIS TREND IMPACT ON
COMPANY’S MARKETING ACTIVITIES?

11. ConsumersAre StillGoingTo The StoreLess, Hence CompaniesMustBe ThoughtfulWiththeirStrategicCampaigns.
For grocers to keep their heads above the water during
this crisis and beyond, they should take three key steps:
 An immediate one
 A near-term one
 A long-term one.
 They should enhance their manual picking efficiency
through improvements such as having employees
pick by zone
 Increase efficiency by pre-portioning counter goods
like deli meat in half-pound increments and then
listing these portions for sale online, rather than
having to cut varying amounts for each online order
 Use a third-party fulfillment service like Instacart
 Use Micro-fulfillment centers to significantly improve
efficiency and cost effectiveness by leveraging
existing real estate that’s located close to end
consumers, thus mitigating the slow and costly last
mile, while automating fulfillment.

12. INSTACART, AN AMERICAN GROCERY DELIVERY AND PICK-UP
SERVICE IS MAKING THE MOST OUT OF THE ONLINE GROCERY
SHOPPING SERVICE TREND…
 Instacart offers its services via website
and mobile app. The service allows
customers to order groceries from
participating retailers with the
shopping being done by a personal
shopper.
 Instacart’s self-service ad platform
allows brands to reach customers
with advertising campaigns using
featured products. There are also
additional full-service display options
booked directly with Instacart.
 Instacart self service advertising was
launched in May 2020, allowing
brands and agencies to create and
manage featured product campaigns
that appear on the Instacart
marketplace.

13. Revenue Model of Instacart:
Delivery Fee
• Every order processed by Instacart which is above the
value of $35 attracts a standard delivery fee of $3.99
for a scheduled or 2-hour delivery and $5.99 for a 1-
hour delivery.
• Orders under $35 value are charged at $7.99 for a
scheduled or 2-hour delivery and $9.99 for a 1-hour
delivery.
Membership Fee (Instacart Express)
• Instacart offers an annual membership by the name
‘Instacart Express’ priced at $99. Users having this
membership can get free delivery of groceries for full 1
year with few terms and conditions.
Mark up prices (15%+ more)
Some stores selling their products on Instacart offer the
same prices as their in-store prices, but few stores listed on
Instacart have a mark-up of 15%+more from their in-store
prices. The revenue from these mark-up prices goes to
Instacart which helps them pay the shoppers.
(Jungleworks)

15. INSTACART’S
ADVERTISING
PLATFORMS:
 Dashboard that includes reporting,
creation and campaign
management features
 Ad inventory is based on a second-
price auction system (winner pays
$.01 more than the second-
highest bidder)
 The flagship ad format is Featured
Products which are keyword-based
and currently exact-match only
 Ad campaigns are organized at the
campaign and product group
levels

16. Instacart is a Trojan horse that will
enter the shopper base of
unsuspecting retailers and
ultimately steer them (and their
revenue streams) away from their
hosts.
Instacart doesn’t consider them as retailers, nor
grocers, but a technology platform. This is technically
correct, after all, Instacart does not count stores or
merchandise among their assets. It is the same
argument used by Uber and Lyft: they are not taxi, nor
transportation companies, but technology platforms.
The boundaries are certainly blurred. In this case, I
would always revert to the mind of the consumer, (or
even their competitors): what need is Instacart
fulfilling in the mind of its consumers? If we consider
the issue in marketing terms, then its is clear that
Instacart competes for the same space in the mind of
consumers as any other grocer. It is an alternative for
stocking groceries much in the same way that Uber
and Lyft are alternatives for taxi companies.
(Daniel Keyes Feb 3, 2021)

17. WHAT DID INSTACART DO
DIFFERENTLY TO BECOME AN
EXISTENTIAL THREAT FOR OTHER
GROCERS LIKE WALMART, AMAZON
ETC?
Instacart has multiple
retailer's platform
which encourages
shoppers to cherry
pick, thus, eroding
whatever loyalty, they
may have for any
particular one
Hence, Instacart is
considered by grocers
as a very fast and
efficient stop gap
solution until a more
permanent solution
can be reached.
Loyalty erosion also
happens upstream as
vendors are also
encouraged to negotiate
directly with Instacart.
Grocers would thus become
nothing more than
convenient generic front-
line warehouses for
Instacart.
Brand equity and loyalty will
be completely obliterated by
Instacart’s superior and
unbeatable proposition: “all
these retailers, under one
‘roof’, conveniently delivered
curbside or to your front-
door.” Only Amazon poses a
greater threat.
Instacart launched a self-
serve advertising platform
that lets marketers promote
products in search results.
Brands can choose the
products they want to
promote, set a budget and
pay when users engage with
those products
Instacart's
personalized search
results show featured
products, while its
marketplace ads
include banners,
coupons and delivery
promotions
Marketers have the
chance to highlight
their brands as
shoppers seek
products and put
them into their online
shopping carts.
Instacart was
committed to provide
service during the
pandemic with a
strong plan. They
hired 300,000 workers
with a potential plan
to add additional
250,000.

18. INSTACART AD CAMPAIGNS AND PROMOTIONS
Tinuiti, the largest independent performance
marketing agency manages Instacart’s Ad
Campaigns. It helps Instacart to unite
channel expertise with cross-channel
strategy to help in client identification,
engagement, and customer acquisition, then
retain and reactivate them as they continue
their digital journey.
(Tinuiti,2020)

19. I. Instacart Featured Products
Instacart Featured Products is the primary ad format on the marketplace.
• Products are selected into campaigns
• No minimum budget, cost-per-click model
• Products show based on geographic availability and stock levels to the signed-in customer
“With Featured Products, you can bid on different child SKUs such as sizes, flavors, or other variants. It’s a 14-day
attribution tied to the customer’s last-clicked UPC,” Marsten.
“What’s great is that all UPCs have a history across Instacart’s network, meaning that 24 to 48 hours after campaign
creation you should see organic search terms auto-populate in your account, cutting down on the initial test and learn
time.”

20. II. Instacart Coupons
Coupons are another popular way brands are bringing attention to products.
• Booked with Instacart
• Once redeemed, no longer available for the next 30 days
• Format supported is “Save $X on Y quantities of Z” at this time
• Pay for redemptions only
III. Instacart Delivery & Hero Banner
Delivery Promotions:
• Enterprise level investment that has inventory and distribution
requirements – booked directly with Instacart
Hero Banner:
• Minimum flight date
• Booked with Instacart

22. • Instacart's valuation has more than doubled in
2020 to $17.7 billion following new funding round.
Instacart raised $200 million in funding, valuing
the start-up at $17.7 billion. Instacart's valuation
has more than doubled since the start of the year.
• Demand for grocery delivery has exploded in
recent weeks as millions try to avoid going outside
amid the COVID-19 pandemic. Instacart is one of
the major beneficiaries of this boom. It’s hiring
hundreds of thousands more contractors to help it
fulfill orders, and the surge in demand has
reportedly made the company profitable for the
first time.
• Instacart made a net profit of around $10 million
in April, according to The Information. The eight-
year-old company is said to have lost a total of
$300 million last year.
• Customers reportedly bought around $700 million
worth of goods through the service in each of the
first two weeks of April. That’s an increase of
about 450% from December, the report suggests.
Instacart declined to comment to The Information
about its finances. It mainly makes money through
delivery fees, taking a percentage of grocery
orders and ads on its app.
(Forbes, 2020)

23. • The latest funding comes as food delivery
companies expand into grocery, convenience and
retail as online shopping surges during the
pandemic.
• Amid surging demand for grocery delivery due to
the coronavirus pandemic, Instacart has raised $200
million in a new funding round led by existing
investors Valiant Capital and D1 Capital Partners.
The round increases the start-up’s valuation to
$17.7 billion. Instacart plans to use capital to
expand its ad and enterprise businesses, and for
product development, the company said.
• Instacart was valued at $7.9 billion at the start of
the year and raised another round of funding in
June led by DST Global and General Catalyst.
Instacart is now valued at the same level as Airbnb
in private markets, highlighting the diverging
fortunes start-ups have seen this year.
(Forbes, 2020)

24. REFERENCES
• Chris Biggs, Khaled Tawfik, Ameya Avasare,, Henry Fovargue,, Dewang Shavdia, and Gavin Parker. n.d. The $2.5 Trillion Opportunity for Grocers That Are First to the
Future. https://www.bcg.com/publications/2020/understanding-how-covid-19-is-radically-transforming-grocery-retail-business-models.
• CNBC. n.d. Instacart’s valuation has more than doubled in 2020 to $17.7 billion following new funding round. https://www.cnbc.com/2020/10/08/instacarts-valuation-
has-more-than-doubled-in-2020-to-17point7-billion.html#:~:text=Menu-
,Instacart's%20valuation%20has%20more%20than%20doubled%20in%202020,billion%20following%20new%20funding%20round&text=Instacart%20raised.
• Daniel Keyes. n.d. THE ONLINE GROCERY REPORT: Coronavirus is accelerating US online grocery shopping adoption—here are the market stats, trends and companies
to know. https://www.businessinsider.com/online-grocery-report-2020.
• Digital Marketing Institute. n.d. 10 Trends in Digital Marketing in 2020. https://digitalmarketinginstitute.com/blog/10-trends-in-digital-marketing-in-2020.
• Forbes. n.d. Coronavirus Grocery Delivery Demand Has Made Instacart Profitable For The First Time. https://www.forbes.com/sites/krisholt/2020/04/27/coronavirus-
grocery-delivery-instacart-profitable/?sh=594ec97a71e2.
• Jia Wertz. n.d. 3 Emerging E-Commerce Growth Trends To Leverage In 2020. https://www.forbes.com/sites/jiawertz/2020/08/01/3-emerging-e-commerce-growth-
trends-to-leverage-in-2020/?sh=5aec4eab6fee.
• Marekting Drive. n.d. Instacart starts self-serve ad platform to connect brands with shoppers. https://www.marketingdive.com/news/instacart-starts-self-serve-ad-
platform-to-connect-brands-with-shoppers/578636/.
• MediaLink. n.d. The Importance and Variety of Digital Marketing Trends. https://www.medialink.com.cy/digital-marketing-trends/.
• Numerator. n.d. The Impact of COVID-19 on Consumer Behavior. https://www.numerator.com/resources/blog/impact-covid-19-consumer-behavior.
• Sylvain Charlebois. n.d. Why COVID-19 Will Change Canadian Grocery Industry Forever: Expert. https://www.retail-insider.com/retail-insider/2020/03/why-covid-19-
will-change-the-food-industry-forever/.
• The Washington Post. n.d. Bigger hauls, fewer choices: How the pandemic has changed our grocery shopping habits forever. https://www.washingtonpost.com/road-
to-recovery/2020/09/01/grocery-shopping-coronavirus-impact/.
• Tom Steininger. n.d. The Future Of Grocery Shopping And The Need For Automation. https://www.forbes.com/sites/tomsteininger/2020/12/02/the-future-of-grocery-
shopping-and-the-need-for-automation/?sh=1a2c6f745142.
• Tunuiti. n.d. Instacart Acceleration Program. https://tinuiti.com/what-we-do/our-services/instacart/.

25. THANK YOU!!!