Roku expands Instacart partnership with Shoppable Ads

On October 9, 2024, Roku announced an expansion of its partnership with Instacart, introducing new shoppable ad formats and advanced targeting features for consumer packaged goods (CPG) brands. This development builds upon the collaboration initiated in 2023, which focused on helping advertisers measure the impact of their TV ads on grocery purchases.

The expanded partnership introduces several key innovations designed to streamline the path from TV viewing to product purchase:

Shoppable Ads

According to Roku, CPG advertisers can now create a direct path to purchase by incorporating text or QR codes into their ad creative. These interactive elements allow viewers to add products to their Instacart cart without interrupting their viewing experience. This feature aims to reduce friction in the purchasing process, potentially enabling customers to receive products in as little as one hour after seeing an advertisement.

Home Screen Ad Placements

The partnership now extends to Roku's Home Screen, offering advertisers the opportunity to place targeted, high-impact shoppable ads in a premium location. This placement is particularly valuable as it represents the initial point of contact for all Roku users when they begin their streaming sessions.

Advanced Targeting Capabilities

Roku has integrated Instacart's first-party data to enable more sophisticated audience targeting. Advertisers can now build category-based audience segments with varying levels of granularity. These segments can range from specific consumer groups (such as those who have purchased a particular brand or category) to broader categories (like consumers of kids' products or zero-sugar items).

Historical Context and Performance

Roku's involvement in retail data-driven advertising predates this expansion. Since 2020, the company has collaborated with major retailers like Kroger and Walmart to leverage their consumer insights for streaming ad campaigns. In the case of Kroger, Roku reported that shoppers exposed to their campaigns spent 2.8 times more on promoted products compared to the average Kroger household.

The initial phase of the Roku-Instacart partnership has already yielded positive results for some brands. For instance, Josh Cellars, a wine brand, utilized the partnership to identify and convert new customers. Roku stated that on average, 52% of streamers who purchased a product they saw advertised on Roku via Instacart were new to the brand.

Industry Perspectives

Tim Castelli, VP of global advertising sales at Instacart, emphasized the transformative nature of this partnership: "We are proud to expand our partnership with Roku, creating an advertising experience that helps people see an ad and get that product from their TV screen to their doorstep in as fast as an hour." He highlighted the combined scale and data insights of both companies as key factors in delivering precision targeting and measurable outcomes.

Jay Askinasi, SVP and Head of Global Media Revenue and Growth at Roku, framed the expansion in terms of evolving marketer needs: "In 2023, we partnered with Instacart to unlock TV measurement. Now, a year later, we're turning our attention to what every modern CPG marketer needs: massive scale and full-funnel solutions." Askinasi pointed out that advertisers can now utilize more aspects of the Roku experience, from Home Screen ad placements to interactive shoppable ads.

Broader Industry Context

This partnership expansion comes at a time when the streaming and e-commerce sectors are increasingly converging. As traditional TV viewership declines and streaming platforms gain prominence, advertisers are seeking more direct and measurable ways to reach consumers. The integration of e-commerce functionality into streaming platforms represents a significant trend in the industry, blurring the lines between entertainment, advertising, and shopping.

Key Points

• Roku and Instacart expanded their partnership on October 9, 2024
• New features include shoppable ads and advanced targeting for CPG brands
• Advertisers can now place shoppable ads on Roku's Home Screen
• Instacart's first-party data enables more precise audience targeting
• Previous collaborations with retailers like Kroger showed increased spending on promoted products
• 52% of streamers who purchased advertised products via Instacart were new to the brand
• The partnership aims to streamline the path from ad viewing to product purchase
• This development reflects broader industry trends merging streaming, advertising, and e-commerce