Instacart’s advertising revenue rose 18% in the last quarter of 2023 to $871 million.
The online shopping app also saw modest growth in orders, which rose to 70.1 million, a 5% year-over-year increase, as well as 5% year-over-year growth in growth transaction value ( GTV).
Driving success. Instacart attributed the success of its ad revenue to the popularity of its shoppable video and display ad formats, along with effective initiatives that highlight value for advertisers.
Why we care. The success of Instacart’s shoppable display and video ad formats suggests that advertisers are getting good results, so it’s worth considering implementing these ad products into your campaign strategy . However, keep in mind that as Instacart gains popularity, ad prices could increase.
Investment rate. The advertising and investment rate remained stable at 3.1% compared to the same period last year. However, it is important to note that the rate increased by 47 basis points over the previous year due to the introduction of shoppable display and video.
Takeaway food. Additional key findings from the report include:
GTV of $30.322 billion, up 5% from the previous year. Orders of 269.2 million, 3% more year-on-year. Total revenue of $3.042 billion, up 19% year-over-year, representing 10.0% of GTV. Transaction revenue of $2.171 billion, up 20% year-over-year, representing 7.2% of GTV. Advertising and other revenue of $871 million, up 18% year-over-year, representing 2.9% of GTV. GAAP gross profit of $2.278 billion, up 24% year over year, represents 7.5% of GTV and 75% of total revenue.
What Instacart says. Fidji Simo, CEO, described Instacart as “the ultimate advertising platform.” He said in a statement:
“Customers trust us for repeat orders of large baskets that are delivered within minutes, and brands use Instacart to connect with these customers with high intent. As a result, we can achieve more than $3 per order in platform advertising and other revenue and on average we deliver over 15% uplift in sales for brands, allowing us to keep costs low for customers and retailers.” “Nearly half of our customers report discovering a new brand on Instacart, and nearly 8 in 10 of them purchased that brand. Now we’re using our data and insights to build a retail media network and expand that footprint to off-platform surfaces.” “By partnering with Google, The Trade Desk, Roku and more, we’re helping brands build campaigns more efficient and targeted across channels such as search, social, programmatic, CTV and linear TV.”
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deep dive. Read Instacart’s full Q4 2023 earnings report in full for more information.
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About the author
Nicola Agius is Search Engine Land’s paid media editor after joining in 2023. She covers paid media, retail media and more. Prior to that, she was Director of SEO at Jungle Creations (2020-2023), overseeing the company’s editorial strategy for various websites. He has more than 15 years of experience in journalism and previously worked at OK! Magazine (2010-2014), Mail Online (2014-2015), Mirror (2015-2017), Digital Spy (2017-2018) and The Sun (2018-2020). He also previously partnered with SEO agency Blue Array to co-author the Amazon best-selling book Mastering In-House SEO.
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