With the new name Instacart+ announced in June, the company is now ramping up marketing around the subscription offering as part of an effort to establish itself as more than a transactional shopping app and to bring consumers to see it as a service that can benefit the whole. household, according to Instacart CMO Laura Jones.
To do this, the company deploys advertisements on social platforms like Facebook, Twitter and TikTok, as well as streaming platforms. The spots aim to target shoppers and Gen Z workers out of college.
Instacart+’s streaming ad campaign began with a 30-second animated spot marking an all-new creative direction that shows consumers what happens when another person is added to their account and how they can “add them by adding that person’s name to the order.
“Our goal is to bring the brand closer to bringing people together,” Jones said. The brand seeks to move people away from seeing Instacart as just a transactional service that does their shopping and positions it as an inspiring shopping experience that allows them to discover new items outside of food from brands such as Sephora, Best Buy and Lowes.
It’s unclear how much of Instacart’s advertising budget is allocated to marketing initiatives, as Jones wouldn’t share details of the overall budget. According to Kantar, the company spent nearly $82 million on advertising in 2021 and nearly $20 million so far in 2022. Jones noted the spending was on paid ads for Twitter, Facebook and TikTok.
Instacart’s previous strategy focused on everyday groceries before the rebranding of Instacart+. However, the casual consumer has not fully understood Instacart Express as a delivery option. “We thought it was really nice to be able to talk about the full range of benefits that Instacart+ represents,” Jones said, adding that the company wanted to move away from the express branding to emphasize that Instacart+ has more. of capacities.
“So we realized, ‘Hey, this is a little confusing for consumers. How could we rename this program to make it a little clearer?’ Jones said, adding that the meaning implies ‘you plus me, plus roommate and mom plus dad”.
“Delivery companies are taking inspiration from the streaming industry. By sharing accounts, they reach customers who will become independent account holders in the future,” said Mitch Ratcliffe, Partner at Metaforce.
Since the pandemic, intent to deliver, which was originally considered non-essential, has now become the norm. It’s important to note that during extended periods of free shipping or $1 deliveries, the most common barrier for users was exorbitant delivery charges. With Instacart+, users will have unlimited deliveries.
“Free shipping helps increase order frequency by removing this hurdle, while subscription creates a slight sense of urgency to realize the benefits. As a result, both increase customer lifetime value,” said said Caleb Hutchings, vice president and head of research at global creative media agency Mediahub.
The impending recession could cause platform prices on Doordash and UberEats to become too high as inflation rises and merchant commissions increase. The Instacart+ relaunch hasn’t rolled out due to the recession, Jones said, but the company is looking to prepare. “Obviously, we review the data daily. So I think we all saw inflation and we were aware of the contributing factors, but it wasn’t proactively planned to coincide,” Jones said.