Snynet Solution Logo
MON - SUN: 10 AM - 6 PM
+60 11 5624 8319


Instacart is moving into digital advertising

Image Description

The popular grocery delivery service Instacart aims to expand its business by selling online advertising in addition to allowing consumers to forgo heading to the grocery store.

As reported by the Wall 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 billion digital advertising business.

Back in July, Instacart appointed board member and former VP and head of the Facebook app, Fidji Simo as 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 the Wall 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 of delivering groceries at a time when both food and gas prices are increasing.

The company first began investing in advertising back in 2019 when it hired a former executive from Amazon. 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.

Via Wall Street Journal


07 Sep 2021



Other Blog

  • Seagate adds another 18TB hard disk drive to its portfolio

    Seagate’s Exos X18 targets hyperscale, datacenter, and enterprise NAS systems.

    Read More
  • Looking for a Prime Day Monitor deal? Don't miss the HP 27er - on sale today

    Check out HP's latest Prime Day Monitor deal on this gorgeous 27er - now rocking a whole $60 off.

    Read More
  • Why choose paid remote desktop software over free?

    Be sure you read this article before trusting your company’s security and operations with free remote desktop software.

    Read More
  • NHS vaccination website leaks people's medical data

    NHS Digital forced to revise vaccine booking process over ‘seriously shocking failure’.

    Read More

Find Out More About Us

Want to hire best people for your project? Look no further you came to the right place!

Contact Us