Instacart’s ad revenues up 18% to $871 Million
Instacart’s ad revenue was up 18% in the final quarter of 2023 to $871 million.
The online grocery shopping app also reported modest growth in orders, which rose to 70.1 million – a year-on-year increase of 5%, as well as a 5% year-on-year growth in growth transaction value (GTV).
Driving success. Instacart attributed its ad revenue success to the popularity of its shoppable display and video ad formats, coupled with effective initiatives that highlight value to advertisers.
Why we care. Instacart attributes its ad revenue success to the popularity of its shoppable video and display ad formats, along with effective initiatives that highlight value for advertisers.
Why we care. However, be aware that as Instacart gains more popularity, ad prices could increase.
Investment rate. Advertising and investment rates remained at 3.1%, a constant compared to last year’s same period. However, it’s important to note that the rate increased by 47 basis points in the previous year due to the introduction of shoppable display and video.
- Takeaways
- . Additional key findings from the report include:
- GTV of $30,322 million, up 5% year-over-year.
- Orders of 269.2 million, up 3% year-over-year.
- Total revenue of $3,042 million, up 19% year-over-year, representing 10.0% of GTV.
- Transaction revenue of $2,171 million, up 20% year-over-year, representing 7.2% of GTV.
Advertising & other revenue of $871 million, up 18% year-over-year, representing 2.9% of GTV.GAAP gross profit of $2,278 million, up 24% year-over-year, representing 7.5% of GTV and 75% of total revenue.
- What Instacart is saying
- . Fidji Simo, Chief Executive Officer, described Instacart as “the best advertising platform.” He said in a statement:
- “Customers rely on us for recurring large basket orders delivered in minutes, and brands use Instacart to connect with those high-intent customers. We’re now using our data and insights to build a retail media network and expand that footprint to off-platform surfaces.” We’re now using our data to create a retail network, and expanding that footprint off-platform.”
By partnering up with Google, The Trade Desk and Roku, we are helping brands create more targeted and performant campaigns across channels such as search, social media, programmatic and linear TV.
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in full for more information.
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Nicola Agius will be the Paid Media editor of Search Engine Land in 2023. She is responsible for paid media, retail and other media. She was previously the SEO Director for Jungle Creations, overseeing multiple websites’ editorial strategy. She has worked in journalism for over 15 years and previously at OK! She has worked at OK! Magazine (2010-2014), Mail Online(2014-2015), Mirror(2015-2017), Digital Spy(2017) and The Sun (2018). She has also worked with SEO agency Blue Array on the Amazon bestseller book Mastering Inhouse SEO. 01001010