Instacart earned $740 million in ad revenue in 2022, up 30% from 2021.
Increase in advertising business. The information reported:
“The grocery delivery company’s ad revenue totaled about $740 million last year, up 30% from 2021, according to a person familiar with the matter. That’s a surprising increase, given that the digital advertising market stagnated last year. Nearly 30% of Instacart’s revenue in 2022 came from selling advertising rather than delivering groceries.”
Ads accounted for about 20% of Instacart’s $1.5 billion in annual revenue in 2021, about $300 million, according to a June 2021 report. Insider report
For comparison Advertising accounted for about 10% of Amazon’s revenue by 2022, according to The Information. Meanwhile, Amazon earned $37.7 billion in advertising revenue last year.
Why we care Instacart remains a viable alternative for brands to promote products directly to consumers. And the company has updated its platform to attract more advertisers.
The bigger picture. By 2022, Google and Meta’s advertising market share fell below 50%. This trend is expected to continue in 2023, in part due to the rise of emerging advertising platforms such as Instacart.
The rise of retail media networks. Retail media search spending is projected to be close to $30 billion this year, and RMN’s digital ad revenue is expected to reach $45 billion. Delve into US paid search spending forecast to reach $110 billion by 2023.
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