<\/p>\n
Instacart earned $740 million in ad revenue in 2022, up 30% from 2021.<\/p>\n
Increase in advertising business.<\/strong> The information<\/a> reported:<\/p>\n “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.”<\/p>\n 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<\/a> report<\/p>\n For comparison<\/strong> 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.<\/p>\n Why we care<\/strong> Instacart remains a viable alternative for brands to promote products directly to consumers. And the company has updated its platform to attract more advertisers.<\/p>\n The bigger picture.<\/strong> 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.<\/p>\n The rise of retail media networks.<\/strong> 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.<\/p>\n