Instacart’s Ad Revenue Soars in 2022

Instacart, the popular grocery delivery service, has been experiencing a remarkable increase in its ad revenue in 2022. Amidst a stagnant digital advertising market, Instacart’s ad revenue growth stands out for its meteoric rise. In this article, we’ll take a closer look at how Instacart managed to boost its ad revenue, and the implications this has for the digital advertising landscape.

In 2022, Instacart’s ad revenue grew by an astounding 30% over its 2021 figures, reaching $740 million. This growth is significant when considering that ads accounted for just 20% of Instacart’s $1.5 billion annual revenue in 2021, roughly around $300 million. In comparison, ad revenue now makes up nearly 30% of Instacart’s total revenue in 2022.

When compared to Amazon’s ad performance, we can see that advertising accounted for about 10% of Amazon’s revenue in 2022, with the company making a whopping $37.7 billion in ad revenue during the same period. However, Instacart’s soaring ad revenue signifies that the platform is becoming a viable alternative for brands looking to promote their products directly to consumers.

Instacart has made several updates to its platform to attract more advertisers. These updates include new advertising formats, improved targeting capabilities, and better reporting tools. This has led to the platform becoming an attractive option for brands seeking to reach consumers directly and efficiently.

The rise of Instacart as an ad platform has contributed to the decreasing advertising market share of tech giants Google and Meta. In 2022, their combined market share dipped below 50% for the first time. Industry experts predict that this trend will continue in 2023, with emerging ad platforms like Instacart playing a significant role in this shift.

Another contributing factor to the shakeup in the digital advertising landscape is the rise of retail media networks (RMN). Industry forecasts expect retail media search spend to grow in 2023, and RMN digital ad revenue to reach an impressive $45 billion. With increasing brand recognition and a broadening pool of advertisers, retail media networks such as Instacart are positioned for continued growth.

In conclusion, Instacart’s soaring ad revenue is disrupting the digital advertising landscape and challenging marketplace giants like Amazon, Google, and Meta. Their growing market share shows that brands are increasingly considering emerging ad platforms for their advertising efforts. As retail media networks continue to gain traction, it’s essential for marketers to keep an eye on this evolving landscape and capitalize on the unique opportunities these platforms provide.