America’s shopping habits were changing in the wake of COVID-19. With 57% of the grocery ecommerce market and order volume up by as much as 500% in 2020, Instacart has emerged as an undisputed opportunity for brands to acquire and retain grocery and CPG shoppers.If you are in store at a participating retailer, then an Instacart Ads program should be part of your media strategy. Join Tinuiti and Instacart as we dig into the top trends dominating 2020 and unpack the latest insights across our digital aisles. We’ll also breakdown Instacart ads, how they work, and the different Instacart ad campaigns you can launch to reach grocery shoppers.

1. Insights & Advertising on the Growing
Instacart Marketplace
Staying Ahead in 2021

2. Today’s Logistics
Persephanie Arellano
Webinar Coordinator
● Session recording and slides will be sent out
● Log back in anytime with the same link
● Resources available as handouts
● Submit questions for live Q&A

3. Tinuiti is the largest independent performance
marketing agency across the triopoly.
Some of
our clients
Our
Recognition

4. 4

5. Today’s Speakers
Elizabeth Marsten
Senior Director, Strategic
Marketplace Services
Mandy Campos
Senior Manager, Insights

6. 6
1. Instacart Q4 Insights with Mandy
2. Advertising Overview & Best Practices with Elizabeth
3. Open Q & A (drop your questions in the chat anytime!)
Agenda

7. Poll Question
Have you personally used Instacart?
● Yes
● No

8. Instacart | Confidential
Instacart Q4
Total Platform
Trends
October 2020 | Confidential

9. Instacart | Confidential
Table of Contents
1) Instacart Landscape post COVID
2) Q4 Signals
3) Q4 2019 Review

10. Instacart | Confidential
Where we are today —
A look-back on how
COVID-19 sparked a
transformation
TOTAL PLATFORM
LANDSCAPE
Instacart | Confidential

11. Instacart | Confidential
INSTACART PLATFORM
During COVID-19 Instacart Quickly Adapted to Meet
Consumer Needs
500%
Increase in order volume
35%
Increase in average
basket size 10k+
New stores (40K stores)
150+
New or expanded partners
(500+ retailers)
1,500+
New pickup locations
15x
Number of care agents
3x
Number of shoppers
(500K shoppers)
Consumer Growth Retailer GrowthOperational Growth
Stats reflect growth during first half of 2020

12. Instacart | Confidential
INSTACART PLATFORM
Becoming Consumers’ “Go-to” Delivery Service -
Growth in Traditional Grocery & Beyond
Instacart has continued to
partner with new retailers
and expand over the course
of the last year. Since the
start of the year, Instacart
has partnered with more
than 150 new retailers and
welcomed more than
10,000 new store locations
to the marketplace.
We’re incredibly proud of
these new and expanded
partnerships, which
include:
Takeaway
Our focus is
grocery, but we are
continuing to add
more non-food
selection for
consumers across
the marketplace.
...as well as dozens of
local grocers across
America.

13. Instacart | Confidential
INSTACART PERFORMANCE
While Food Categories Continue to Grow, Non-Food
Categories Are Gaining Traction Fast
Food continues to grow
year over year, as our
most-shopped category.
Beyond food, some
non-food categories are
seeing notable
penetration rate
increases (ex: household
+19 pts) vs. YTD LY.
Top 5 food categories by
sales volume are produce,
dairy & eggs, meat &
seafood, frozen foods,
beverages.

14. Instacart | Confidential
HOUSEHOLD PENETRATION
While Household Penetration Rates Across
Categories Are Rising, There’s Still Room to Grow
HH Pen Growth YTD YoY by Category

15. Instacart | Confidential
A look into the unique
upcoming holiday
season
Q4 TOTAL PLATFORM
TRENDS
Instacart | Confidential

16. Instacart | Confidential
+1.7% CAGR
+4.4%
8,000
7,500
7,000
6,500
6,000
5,500
5,000
4,500
4,000
2005
2006
2011
2013
2015
2016
2017
2018
2019
2022E
2025E
Grocery is growing - The global grocery market, which has
grown consistently for the past decade, is seeing a spike in
2020 driven by COVID-19. The US, which makes up 17%
of this market, is the largest player and follows a similar
trend
A shift to online - US online penetration in grocery has
more than doubled in the last several months
Due to COVID-19 Online Grocery Penetration Hits
Rates Previously Expected by 2025
US Online Grocery PenetrationGlobal Grocery Retail Market Value
(Online + Offline) USDBN
Source: Bank of America “COVID-19 Investment Implications Series: From brick to click & everything between “, 2020
12%
10%
8%
6%
4%
2%
0%
Jan-10
Jan-11
Jan-12
Jan-13
Jan-14
Jan-15
Jan-16
Jan-17
Jan-18
Jan-19
Jan-20
2023E
2024E
2020E
2021E
2012
2014
2010
2008
2007
2009

17. Instacart | Confidential
Online will continue to grow - Online grocery is
expected to grow 15X faster than brick & mortar over
next 5 years
Customers are going to stick to online - A study by
BCG shows that consumers tend to keep most habits
adopted during a crisis, even after the period of
distress ends:
Online Grocery to Be Key Driver for Overall Grocery
Industry Growth for Next 5 Years
Source: 3 - Bank of America “COVID-19 Investment Implications Series: From brick to click & everything between “, 2020
vs.
Expected Growth by 2025
+18%
CAGR for Online
Grocery Sales
+1.2%
CAGR for In Store
Grocery Sales
Customers who shop online
5 times over a 3-4 month period are likely to
stick to online long-term

18. Instacart | Confidential
INSTACART PERFORMANCE
Users Who Joined During the
Pandemic are Sticking Around Long Term
89%
of users see Instacart as an
essential service
86%
of users are likely to keep
using Instacart in the future
COVID has forever changed the way people shop for their groceries and we see this as a permanent
shift in consumer behavior

19. Instacart | Confidential
Learning from the past —
A deep dive on shopping
behavior from Q4 last
year
SHOPPING BEHAVIOR
TRENDS
Instacart | Confidential

20. Instacart | Confidential
PATH TO CART
Behavior Is Split Roughly Evenly Between Search &
Non-Search With Peaks in Search Around the Holidays

21. Instacart | Confidential
INSTACART PERFORMANCE
Based on Last Year’s Trends, Search Volume is
Likely to Spike Throughout Q4
+32%
vs. Avg Q3 2019 Wk
+39%
vs. Avg 2019 Wk
2019 Q4 Avg Weekly Searches

22. Instacart | Confidential
SEARCHES BY HOLIDAY
We Saw a Shift in Top Searched Terms Around the
Major Holidays of Q4
Thanksgiving Christmas Eve New Years Eve
2019 Search increase vs.
November average:
4 Days before: +44%
Top 5 Keywords vs. Baseline
● Cranberry sauce
● Stuffing mix
● Turkey gravy
● Whole turkey
● Pumpkin pie
2019 Search increase vs.
December average:
1 Day before: +36%
Top 5 Keywords vs. Baseline
● Black eyed peas
● Prime rib (roast)
● Spiral ham
● Gift card
● Appetizers
2019 Search increase vs.
December average:
2 Days before: +24%
Top 5 Keywords vs. Baseline
● Black eyed peas
● Fresh cilantro
● Collard greens
● Zucchini squash
● Chicken breast boneless

23. Instacart | Confidential
INSTACART PERFORMANCE
Consumers Ordered Earlier Leading Up to the
Holidays
However, 45% of orders still happen after Noon PST

24. Instacart | Confidential
Q4 SEARCHES
Popular Year-Round Search Categories Maintain High
Volumes
Top 25 Search Categories by Search Volume

25. Instacart | Confidential
Q4 SEARCHES
However, Holiday-Related Search Categories Grow the
Fastest
Top 25 Search Categories by QoQ Growth

26. Instacart | Confidential
SEARCH
Popular Year-Round Search Terms Maintain High
Volumes
Top 25 Search Terms by Search Volume

27. Instacart | Confidential
SEARCH
Again, Holiday-Related Terms Grow the Fastest
Top 25 Search Terms by QoQ Growth

28. Thank You!
Instacart | Confidential

29. Poll Question
Are your brands currently advertising on Instacart?
● Yes
● No

30. 30
Online Grocery Today

31. Grocery
eCommerce
is having a
moment.
31
➜➜➜➜

32. 32
The Numbers:
● The number of surveyed U.S. adults who reported
increasing their online grocery shopping jumped
from 11% to 37% between March 1-22
● Instacart has seen order volume surge by as much as
500% since March
● Today, more than 500,000 people serve as Instacart
shoppers, picking, packing and delivering groceries and
goods for customers across North America - up from
200,000 Instacart shoppers in March.
COVID Instacart Grocery Data
Confidential

33. 33
Instacart Overview
500+Different retailers
40,000 stores
60%of US Grocery sales
represented
5,500Cities in North America
85%of US Households have
delivery available
20 approx.
Product searches per order

34. 34
Instacart Advertising Options
Confidential

35. 35
The Details:
● Delivery Promotions
○ Limited inventory, enterprise level investment
○ Work directly with Instacart
● Hero Banner
○ Flat fee + 1 week minimum
○ Work directly with Instacart
Delivery Promotions & Hero Banner
Confidential

36. 36
The Details:
● 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
Coupons
Confidential

37. 37
The Details:
● 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
Featured Products
Confidential

38. 38
● Second price auction - similar to Amazon and Google, meaning you pay .01 more than the next highest bid
● Able to bid on different child SKUs (sizes, flavor variants)
● Exact match keywords only today
● 14 day click attribution, tied to the last clicked UPC
● All UPCs have a history across the Instacart network, 24-48 hrs after campaign creation, organic search terms will auto
populate in the account, cutting down on initial test and learn time
● Each UPC has its own quality score - so the more popular variants will show more often (for example a 16 oz size instead of
a 32 oz size)
Featured Products Up Close
Confidential

39. 39
● Yeah, you need to be in a store. Instacart is not a broker.
● Instacart has offered advertising for a few years now, so you may already be engaged or have a point of contact
● Web based self-service option launched in May!
○ Sign up here: https://ads.instacart.com/
○ Emerging or smaller brands - great way to start!
● No minimum budget required, but recommend at reviewing how many SKUs you have (including variations), how many store
locations and what your historical sales have been via Instacart without advertising and applying how much you’d like to
grow that. Rule of thumb - $500/SKU/month at minimum.
Getting Started on Instacart Featured Products
Confidential

40. 40
Instacart Featured Products
Walkthrough & Optimizations
Confidential

41. 41
● Granular structure is best
○ Campaign - Ad Group - Product(s) - Keywords
○ Group by category at the campaign level
○ Ad group by product (can be a single SKU) with variations (like sizes, flavors)
○ Bid at the keyword and/or ad group level
Campaign Structure
Confidential
*Numbers pictured for demonstration only

42. 42
● Bid strength - at the ad group and
keyword levels
○ Default or Override
○ Strong or weak (green, yellow, red)
○ Suggested maximum bid
Bidding Options
Confidential
*Numbers pictured for demonstration only

43. 43
● Exact match only
○ Head / generic terms
○ Brand terms
○ Competitor terms (yes, you can!)
Keywords
Confidential

44. 44
● Maximize Impressions
○ Lifetime campaign budget - continuously
running until lifetime budget is hit.
● Paced Spending
○ Set start/end dates - daily spend then is
calculated and spread out over the lifetime of
the campaign.
○ If budget runs short/ends early, you’ll receive
an email letting you know when and how
much more budget to add to cover that
shortage as well as number of impressions
missed.
Budgeting Options
Confidential
*Numbers pictured for demonstration only

45. 45
● Volume is more than you might think - remember, it’s number of retailers
AND locations that can influence your total available impressions
● Continually check in - like 2-3x a week to ensure bids are competitive where
you want them to be
● Check those budgeting options vs. pacing vs. ROAS
● A weak bid doesn’t mean you’re not showing up - just not as competitive for
a majority of placements
● Take advantage of competitor brand name bidding - the CPCs aren’t as
prohibitive as you might think
Some Best Practices & Reminders
Confidential

46. 46
● Help Centre in the Instacart Advertising UI
● Instacart Ads: Everything You Need to Know
● Tweet me - @ebkendo
Resources
Confidential

47. Key Takeaways
Due to Instacart’s scope and size, there is an incredibly rich
data set that allows for a unique understanding of the
e-commerce landscape and how customers are shopping.
Users have to be signed in to see retailers, choose one and
only then are ads shown - which improves relevancy.
If you’re a retailer store that is on the Instacart network -
you need to be doing advertising.

48. Schedule Your 1:1
Strategy Evaluation

49. Live Q&A
Elizabeth Marsten
Senior Director, Strategic
Marketplace Services
Mandy Campos
Senior Manager, Insights

50. https://tinuiti.com/content/
Upcoming Tinuiti Webinars

51. THANK YOU!