Instacart is moving into digital advertising
Digital advertising will help Instacart offset the rising costs of grocery delivery
When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
The populargrocery delivery serviceInstacart aims to expand its business by selling online advertising in addition to allowing consumers to forgo heading to the grocery store.
Asreportedby theWall Street Journal, the company has hired veterans from Facebook and other tech giants as it works to develop advertising platforms for video and other services. The move comes at a time when its biggest customers, Walmart and Kroger, are also trying to tap into the multi billiondigital advertisingbusiness.
Back in July, Instacart appointed board member and former VP and head of the Facebook app,Fidji Simoas its new CEO. At that time, Simo said that the company has such a big opportunity in the digital advertising space though “the challenge is executing fast enough to capture it”.
According to Simo, Instacart’s specialization in groceries could provide the company with a strong position in the consumer-products advertising space.
Digital advertising push
Instacart sees advertising as a way to boost sales and deepen its connections with users according to executives from the company that spoke with theWall Street Journal.
Last year the company’s advertising business was able to generate around $300m in revenue but by next year, Instacart wants to increase this figure to $1bn.
According to Simo, the company views advertising as a service well-suited for grocers that don’t have the capabilities to build their own tech platforms. However, selling ads is also a way for Instacart to offset the rising costs ofdelivering groceriesat a time when both food and gas prices are increasing.
Are you a pro? Subscribe to our newsletter
Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed!
The company first began investing in advertising back in 2019 when it hired a former executive fromAmazon. Now though, Instacart’s main focus is search advertising where brands pay to be prominently features at the top of the results on its app or website.
We’ll have to wait and see whether or not the company’s push into digital advertising is successful but at the moment it appears that Instacart is taking the right steps to expand its business beyond grocery delivery.
ViaWall Street Journal
After working with the TechRadar Pro team for the last several years, Anthony is now the security and networking editor at Tom’s Guide where he covers everything from data breaches and ransomware gangs to the best way to cover your whole home or business with Wi-Fi. When not writing, you can find him tinkering with PCs and game consoles, managing cables and upgrading his smart home.
7 myths about email security everyone should stop believing
Best Usenet client of 2024
Australian Beach Volleyball Tour live stream: How to watch bronze and gold medal matches online for free, finals, start time
