Instacart: Sales Growth and International Expansion; iOS 14 Privacy ChangesBy Cleveland Admin
Instacart has emerged from 2020 as one of the top priority online grocery accounts for branded manufacturers. Our research suggests 1Q sales growth with Instacart was very strong, while 2Q sales growth has decelerated significantly due to much tougher comparisons. Recent sales trends appear largely in-line with plan, and average volumes on Instacart appear to be holding up well, with only slight moderation as consumer mobility has improved in recent months. Most suppliers are expecting sales growth to reaccelerate in the summer months as Y/Y comparisons become easier. Our work suggests brands are forecasting full year 2021 Instacart sales to be up 20-30%, on average. There is confidence in Instacart’s ability to retain market share as they continue to add new retail partners and improve their advertising offerings.
Source: Instacart News
Instacart Eyes International Markets:
Instacart seems to be focused on expanding its presence, not only by way of additional retailer partners both in and outside of the grocery space, but also by looking to international markets. The company recently announced four new vice presidents, one being Nikila Srinivasan who will have the title VP of product for international. Ms. Srinivasan was formerly employed by Facebook and is just one example of Instacart garnering talent from other leaders in the digital space as they continue to build out capabilities and strategy.
iOS 14 Impact on Digital Advertising:
Early advertiser feedback from recent iOS privacy changes suggests the 14.5 update has had minimal disruption on the digital advertising industry – though the narrative remains influx as the iOS update rolls out more broadly the next few months. In the midst of these privacy changes, our recent research suggests that the most forward-thinking brands are improving their ability to collect and utilize customer data, helping optimize marketing workflows over-time. Some companies look to be doing this via increased creativity with external data sources, like gathering insights from product reviews and activity on public forums. Having better 1st party data in the form of email lists and retargeting lists is viewed as a means of owning your own destiny and supporting marketing diversification efforts, as these raw materials can be deployed in a variety of different environments.