rtising revenue accounts for nearly 30% of Instacart’s revenues //
In 2022, Instacart generated $740 million dollars in advertising revenue. This is a 30% rise over 2021.
Ad business is booming. Information reported.
According to a source familiar with the situation, “the grocery-delivery company’s advertising revenue totaled $740 million in 2018, up 30% since 2021.” This is a remarkable increase considering that the digital advertising market was stagnant in 2018. Instacart will generate nearly 30% of its revenue in 2022 from advertising, rather than delivering groceries.
According to a June 20, 2021 Report by Insider, ads accounted for approximately 20% of Instacart’s $1.5 million annual revenue. That’s about $300,000,000.
As a comparison. According to The Information, advertising accounted for around 10% of Amazon’s revenue in 2022. Amazon generated revenue of $37,7 billion through advertising in the past year.
Why do we care? Instacart is a viable option for brands to market products directly to consumers. The company has upgraded its platform in order to attract more advertisers.
The big picture. By 2022, Google’s and Meta’s advertising market shares will have dropped below 50%. The trend is expected continue into 2023 in part due to the growth of emerging ad-platforms such as Instacart.
The rise in retail media networks. Retail search spending is predicted to reach $30 billion this fiscal year, and digital ad revenues for RMN are expected to top $45 billion. Dig deeper in U.S. The paid search market is expected to reach $110 billion by 2023.