Shopper Discovery and the Convergence of the Meta & the Physical

03/12/21 • 51 min

The Instacart Paradox can easily confuse brands and advertisers. Instacart is part marketplace, part last-mile delivery, part advertising space, and yet not fully any of these all at the same time. Kiri Masters joins the pod to explain Instacart and how brands can leverage Instacart as a marketing strategy.

Instacart for CMOs

Kiri just wrote a new book called “Instacart for CMOs.”
“There wasn’t as much written about Instacart as there was about other retail marketplaces and there’s a huge thirst for information from brands.” - Kiri Masters
This book is a comprehensive guide on how to approach Instacart and how to understand it for your business.

Fulfillment and ROI

“[Instacart] doesn’t quite fit the definition of a delivery app and it doesn't quite fit the definition of a marketplace.” - Kiri Masters
Instacart isn’t a traditional two-party marketplace, but a four-sided marketplace—the retailer, the in-store shopper, the delivery gig-worker, and the brands that advertise via Instacart.
Delivery is a complex issue for businesses in making them profitable. Kiri suggests that fulfillment as a service is a new business model and Amazon is way ahead. Other retailers need their own infrastructure, but are far behind.
Instacart is better positioned for the long-term because grocers, for example, are in the grocery business—not the innovation, technology, logistics, and fulfillment business.
10 out of the 10 clients assessed for the book said that Instacart is their highest ROI on ad auctions.
Repurchasing is 20-25 percent of shopping activity and Instacart helps drive this by setting up its UI to recommend previously ordered product to its customers again and again.

The Instacart Paradox and the Complexity of Ad Networks

Instacart offers great ROI for an advertiser and the demand is there. However, there’s a lack of control over the availability, the content, and the pricing.
For example, if a certain geography is out of a certain product because of a retailer’s inventory, a competitor could win those advertising bids.
Ad investments are fractionalized across many platforms, so in order for brands to build their own infrastructure, a lot of work would have to be done to bring in-house skill and capabilities to the table.

Instacart for CMOs

Kiri just wrote a new book called “Instacart for CMOs.”
“There wasn’t as much written about Instacart as there was about other retail marketplaces and there’s a huge thirst for information from brands.” - Kiri Masters
This book is a comprehensive guide on how to approach Instacart and how to understand it for your business.

Fulfillment and ROI

“[Instacart] doesn’t quite fit the definition of a delivery app and it doesn't quite fit the definition of a marketplace.” - Kiri Masters
Instacart isn’t a traditional two-party marketplace, but a four-sided marketplace—the retailer, the in-store shopper, the delivery gig-worker, and the brands that advertise via Instacart.
Delivery is a complex issue for businesses in making them profitable. Kiri suggests that fulfillment as a service is a new business model and Amazon is way ahead. Other retailers need their own infrastructure, but are far behind.
Instacart is better positioned for the long-term because grocers, for example, are in the grocery business—not the innovation, technology, logistics, and fulfillment business.
10 out of the 10 clients assessed for the book said that Instacart is their highest ROI on ad auctions.
Repurchasing is 20-25 percent of shopping activity and Instacart helps drive this by setting up its UI to recommend previously ordered product to its customers again and again.

The Instacart Paradox and the Complexity of Ad Networks

Instacart offers great ROI for an advertiser and the demand is there. However, there’s a lack of control over the availability, the content, and the pricing.
For example, if a certain geography is out of a certain product because of a retailer’s inventory, a competitor could win those advertising bids.
Ad investments are fractionalized across many platforms, so in order for brands to build their own infrastructure, a lot of work would have to be done to bring in-house skill and capabilities to the table.

Previous Episode

Instacart for CMOs: The Four-Sided Marketplace, feat. Kiri Masters, Author of Instacart for CMOs

The Instacart Paradox can easily confuse brands and advertisers. Instacart is part marketplace, part last-mile delivery, part advertising space, and yet not fully any of these all at the same time. Kiri Masters joins the pod to explain Instacart & how brands can leverage Instacart as a marketing strategy.

Next Episode

Ecom for New Moms: The future of parenting at the intersection of technology and digital commerce (feat. Ingrid Milman-Cordy)

This week, Ingrid joins Phillip & Brain to talk about her impressive baby registry, different mommy personas, and how monoculture is affecting their kids.

Instacart for CMOs and Podcasts

Ingrid helped contribute to Kiri’s new book: “The power that Instacart unlocks has never really been in the hands of retailers or brands. In the year 2020, it has gotten significantly more advanced in the ways we’re able to actually market to a new consumer.” - Ingrid
“I think to stand out in podcasting is the same challenge to stand out in the brand world... it’s all suffering from the same challenge, which is there’s too much of it.” - Phillip Jackson
“Discoverability is so hard that having this one kitschy thing is a way to stand out. I don’t know if it’s the way to stand out forever and be durable, but it certainly grabs people’s attention.” - Phillip Jackson

Pandemic Pregnancy and the Enthusiast Economy

Ingrid is pregnant and has dug into research and registries.
“[Being pregnant] is sort of the ultimate enthusiast economy because once you have your baby, there’s no going back. You become an enthusiast.” - Brian
Ingrid goes into different types of moms: the sustainable minimalist eco mom, the boujee mom, and the Target mom - all of which have marketing geared towards them.
Ingrid explains her own choice anxiety, giving the differences between her detailed registry versus a friend’s simplified, non-brand specific registry.
Monoculture has died. In reference to children: “The only things that are relevant are the things that are influencing them at this exact moment.” - Phillip Jackson