WILDE CHIPS’ Post

What can we learn from Instacart's prospectus? Instacart's dynamic retail media strategy is transforming the grocery industry's advertising landscape. As it continues to gain momentum, grocers must adapt to this new competitive reality, re-evaluating their traditional trade spending models. Our experts explore the changing face of grocery advertising and why Instacart is leading the way. #RetailMedia #GroceryIndustry #Instacart

"We estimate that on average, our ads deliver more than a 15% incremental sales lift, and in some cases twice that, for our brand partners." This stood out to me as one of the key selling points highlighted by Instacart in their S1 filing. It's clear brands going forward will push for and demand a focus on incrementality when evaluating where to invest their retail media dollars. When reviewing the S1, I was really fixated on understanding the data behind Instacart's ad business as well as their position in the market to truly understand how this will affect the retail ecommerce community. These are my top 4 findings: 1️⃣ Advertising is a huge competitive advantage for Instacart. It effectively nets out their entire cost of revenue allowing them to retain the full transaction revenue on each order 2️⃣ DoorDash is a serious player in the space. They have grown to the #2 position behind Instacart on <$75 orders... and while miniscule you can see them starting to accelerate and grow in the >$75 segment. Keep an eye on them. 3️⃣ Profitability is Key in this environment. As I predicted, Instacart has shown 5 quarters of profitability on an adjusted EBITDA basis. This is likely one of the drivers of the IPO timing to capitalize on this tailwind. 4️⃣ Brands are investing more. Active brand partners on average spent 23% on Instacart in 2022 vs. 2021, likely correlating with increased competitiveness on the platform as well as strong performance on their media dollars. There has already been a lot of analysis on the S1 so far... what stood out to you?

How to Leverage Ads on Instacart ⬇️ There are 2 Instacart ad types to know: 1. 𝗜𝗻𝘀𝘁𝗮𝗰𝗮𝗿𝘁 𝗙𝗲𝗮𝘁𝘂𝗿𝗲𝗱 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝘀 🛒 - Appear on the homepage, department pages, item details, and more. - Capture users browsing categories, searching keywords, and at checkout. → Why it works Shoppers on Instacart are less brand-loyal and more open to trying new products, making this an excellent opportunity to get your product noticed. 2. 𝗜𝗻𝘀𝘁𝗮𝗰𝗮𝗿𝘁 𝗗𝗶𝘀𝗽𝗹𝗮𝘆 𝗔𝗱𝘀 📱 - Leverage Instacart's rich data to target consumers more precisely. - Increase brand familiarity and comfort. → Why it works When shoppers recognize your brand, they're more likely to try it. Think of it as securing prime shelf and aisle positions in a digital grocery store. → The Results 📈 Impressive Return on Ad Spend 🌟 Significant Brand Growth If you're looking to maximize your presence, Instacart ads are a must. 💡 Want to learn more? Come back next week where I'll talk about a new Instacart case study from my team. #InstacartAds #DigitalAdvertising #ecommerce #BrandGrowth #ROAS #SearchNurture

🛒 Ready to Boost Your Sales on Instacart? 📈 Check out these game-changing Instacart ad strategies! Whether you’re new to digital marketing or a seasoned pro, leveraging Instacart Featured Products and Display Ads can transform your brand's presence. 👉 Don’t miss out on this chance to enhance your return on ad spend and achieve significant brand growth. #InstacartAds #DigitalMarketing #BrandGrowth #EcommerceTips

Instacart's dynamic retail media strategy is transforming the grocery industry's advertising landscape. As it continues to gain momentum, grocers must adapt to this new competitive reality, re-evaluating their traditional trade spending models. Our experts explore the changing face of grocery advertising and why Instacart is leading the way. #RetailMedia #GroceryIndustry #Instacart

Seeking your suggestions for companies for class, but first, an interesting read posted by one of my former students, Stuart Moss at AlixPartners If you’ve taken our version of Financial Statement Analysis at the Texas McCombs School of Business*, there are many connections and extensions here to Topics 2 (understanding the business and drivers of financial performance to beginning to identify and assess platforms and sustainable competitive advantages or the lack there of), Topic 4 (assessing the rapidly changing retail/grocer environment) and our Uber and DoorDash discussions. To summarize the write up and link it to our discussions with some questions:** >>How and why will the dynamics shift between consumer brands and retailers? >>How will this continue to change capital deployed into physical infrastructure and advertising dollars? >>What financial metrics will best help us explore this issue and assess performance? >>As the distribution and logistics of retail continue to evolve, which companies and even types of companies will hold the position of platform that grocers have held? >>Ultimately, who will have or control the access to customers? Currently debating whether I should directly cover Instacart as a natural extension of our Uber and DoorDash conversations or leave it as a final project for our students to explore. Any thoughts? Any other suggestions on companies for our current students to explore as a final project? Our criteria is companies whose business model is accessible and understandable to the vast majority of the class, so companies like sweetgreen or Portillo's (covered in the past) are a lot easier to digest than Arm or Palantir Technologies. Ideally the company is one that will continue to be relevant as commerce evolves (so the Instacarts of the world work very well). * Well, if you wanted ROI and actively attended the discussions. ** A hope is that in the long run the answers will not be just slapping an #EBITDA sticker on and pretending everything, even complete value destruction, is amazing. #financialstatements #financialstatementanalysis #financialanalysis #mba

Instacart's dynamic retail media strategy is transforming the grocery industry's advertising landscape. As it continues to gain momentum, grocers must adapt to this new competitive reality, re-evaluating their traditional trade spending models. Our experts explore the changing face of grocery advertising and why Instacart is leading the way. #RetailMedia #GroceryIndustry #Instacart

The progressive retail media strategy implemented by Instacart has initiated a significant shift in the advertising landscape of the grocery industry. As this transformative approach continues to gather momentum, it is imperative for grocers to adjust their existing trade spending models in order to remain competitive in this evolving market. Our team of experts thoroughly examines the evolving nature of grocery advertising and emphasizes the pioneering role played by Instacart in this regard. #RetailMedia #GroceryIndustry #Instacart

Instacart's dynamic retail media strategy is transforming the grocery industry's advertising landscape. As it continues to gain momentum, grocers must adapt to this new competitive reality, re-evaluating their traditional trade spending models. Our experts explore the changing face of grocery advertising and why Instacart is leading the way. #RetailMedia #GroceryIndustry #Instacart

Marketers miss out on sales by underestimating the laziness of their customers. Taking a page from Instacart is a surefire way to bring more dollars in. And no, I’m not just saying build a $9B tech company. What I am saying is: - Make buying your stuff insanely easy for your customer (like as easy as tying your shoes, or even easier) You don’t want customers to think. You want them to act. Shortening the #CustomerJourney is everything; does it really surprise you that 50% of Americans are less likely to purchase something online if the checkout process takes longer than half a minute? I love Instacart’s new announcement that they’re helping select brands turn their YouTube ads into instantly shoppable experiences. They’re enabling viewers to click directly from an ad to an Instacart product page to purchase the featured item for same-day delivery. Marketing teams need to find new and innovative ways to make buying their product, using their service, or signing up for their thing, quick and easy. We’re lazy by nature. Don’t underestimate that. https://lnkd.in/gn9avMXa