Instacart Expands Retail Media Reach with Hy-Vee Partnership, Caper Cart Ads
Instacart has been tapped by Midwestern supermarket chain Hy-Vee to expand and enhance its advertising capabilities for CPG brands. Instacart has also increased access to its in-store advertising on Caper Carts, its AI-powered smart carts, to all of its brand partners.
The e-commerce giant made the two announcements during Shoptalk in Las Vegas on March 25.
RedMedia Partnership
Hy-Vee is expanding its retail media ad inventory by integrating Carrot Ads, Instacart's extensive advertising network, into its RedMedia retailer media network. The move will allow Hy-Vee to leverage Instacart’s advertising technology and provide CPG brands with additional opportunities to engage shoppers on Hy-Vee.com.
By adopting Carrot Ads, Hy-Vee will gain access to Instacart's advertising ecosystem, which includes demand from more than 7,000 brands, according to a media release. This will enable advertisers to extend their campaigns beyond Instacart's marketplace to Hy-Vee's owned digital properties, offering more personalized ad placements and product recommendations.
Carrot Ads capabilities on RedMedia will be available to advertisers later this year.
"Retail media is a critical driver of the grocery ecosystem, and since launching Hy-Vee RedMedia, we’ve been committed to strengthening our capabilities in this area," Kathryn Mazza, president of Hy-Vee RedMedia and chief marketing officer of Hy-Vee, said in the release. "Our partnership with Instacart through their Carrot Ads solution exemplifies how we’re continuing to enhance our offerings by expanding the value we bring to advertisers."
Hy-Vee RedMedia, which launched in 2022, comprises both digital and in-store advertising opportunities. The addition of Carrot Ads aligns with Hy-Vee's ongoing efforts to expand its retail media footprint and enhance its digital offerings.
Carrot Ads allows retailers to integrate Instacart's advertising technology directly into their owned digital channels. More than 220 retailer banners currently use the platform to manage retail media campaigns.
Instacart Expands Access to In-Store Advertising on Caper Carts
Instacart also revealed that beginning in April, its more than 7,000 brand partners will be able to run in-store advertising campaigns on Caper Carts. The move extends Instacart’s ad offerings to in-store environments for all of its brand partners, allowing them to integrate Caper Cart digital screens into their existing Instacart Ads campaigns.
As of next month, new and existing shoppable display campaigns will automatically syndicate across the Instacart marketplace and in-store via Caper Cart screens without requiring additional setup from advertisers, per a media release.
Caper Cart ads are "inventory- and aisle-aware," meaning that promotions will appear only when relevant products are in stock and when shoppers are in the appropriate aisle.
For example, a frozen snack brand, such as Diana's Bananas, can launch an Easter campaign, showcasing its flavors both online and in-store. For its in-store activation, the brand could display an ad to shoppers as they navigate the frozen foods section via the Caper Cart. The cart’s digital screen allows shoppers to add the item to their basket and check out directly from the cart.
This expansion builds on Instacart's broader retail media strategy, which aims to connect brands with consumers across multiple touchpoints — online, in-store and through off-platform extensions and third-party partnerships, such as Google, Instagram, The Trade Desk, NBCUniversal and YouTube.
“We’ve built Instacart Ads to drive results for brands on our platform, and have proven that this also drives incremental in-store sales,” Ali Miller, Instacart’s vice president of ads product, said in the release. “Brands face the complexity of navigating hundreds of retail media networks, and we want to make that easier. Now, they can create one campaign with Instacart to drive engagement and reach at scale across the Instacart Ads ecosystem.”
Caper Carts are available at grocery stores across more than 60 cities in the U.S., including Aldi, Kroger, Schnucks, and Wakefern, as well as many regional and local independent grocers. According to Instacart, on average, customers spend more than 30 minutes shopping with a Caper Cart.
This latest news follows a successful Caper Cart ads pilot earlier this year where more than 50 CPG partners, such as Mondelez International, Diana’s Bananas, Kettle & Fire and Talking Rain Beverage Company, tested this new capability.
“We value our collaborative partnership with Instacart where we’re able to test and learn alongside each other as they roll out new technology,” Mindy Shaltry, senior director, omnichannel marketing & activation, Mondelez, said. “This in-store ad enabled us to seamlessly connect with more consumers during key seasonal moments, featuring Ritz crackers and Oreo cookies for the Big Game, Sour Patch Kids for Valentine’s Day and Halls during cold and flu season.”
Instacart brand partners can expect additional Instacart Ads formats to extend to Caper Carts in the coming months.
