Instacart is extending its first-party retail media data to YouTube, offering more shoppable ad opportunities for its consumer packaged goods (CPG) advertisers.

Instacart, a grocery delivery service catering to customers across the U.S. and Canada, has expanded its partnership with YouTube to include shoppable ads. The new feature enables consumers watching YouTube ads of select brand partners to purchase advertised items with same-day delivery options directly.

The YouTube expansion builds on the earlier Google Shopping Ads collaboration powered by Instacart. Instacart’s first-party retail media data and closed-loop insights enable shoppable ads to reach high-intent consumers searching on Google and convert their searching activity into real-time purchases.

Instacart aims to grow its ad sales business and deliver unique consumer experiences through innovative tech solutions, such as artificial intelligence (AI). Thus, the firm combines first-party data with Google’s AI-powered solutions to achieve that growth. Having vast insights into consumer shopping behaviour, Instacart has gradually moved from lower funnel solutions, like classic sponsored products, to mid-funnel creative solutions, like shoppable videos and ads.

Instacart’s AI-powered merchandising leverages analysis of nutritional preferences, past purchases and real-time trend data to engage high-intent consumers across Google’s resources and facilitate purchases on Instacart.

During its pilot phase, Google Shopping Ads were tested by a few Instacart’s CPG partners, including Danone’s Oikos, Kraft Heinz brands (Kraft, Lunchables, Oscar Mayer, and Philadelphia), Nestle, and Publicis Media’s CPG clients. Today, Clorox and Publicis Media are among Instacart’s first partners to pilot the YouTube shoppable ad capability.

“We’re proud to continue bringing our world-class advertising capabilities to more platforms and unlocking innovative new touchpoints to connect brands and consumers. By expanding into shoppable YouTube ad formats, we’re merging the power of video creative with our valuable first-party data and seamless shopping experience. Today’s announcement marks an important next step to make grocery shopping effortless by helping consumers more easily go from discovery to purchase.”

Fidji Simo, CEO and Chair of Instacart

The decision to transfer shoppable ad capability to YouTube is motivated by statistics. According to a recent Google/TalkShoppe study, YouTube is the #1 platform consumers use to research products and make purchase decisions. In fact, viewers globally watched over 30 billion hours of shopping-related content in 2023.