Introducing New Sales Lift Metrics and A/B Testing for CPG Brands

Kellogg Company sees double-digit sales lift from Instacart Ads, as one of the first to pilot sales lift & A/B testing capabilities

We’re excited to introduce new measurement capabilities that help brands gain a deeper understanding of the true sales impact of their sponsored product ad campaigns on Instacart. As brands navigate the current economic climate, finding an ad platform that demonstrates a clear return on investment (ROI) is more critical than ever. 

For the last few years, our flagship sponsored product solution has been helping advertisers drive conversion on Instacart across North America. Since launch, we’ve continued to improve our measurement and reporting capabilities together with feedback from our brand partners. Today, we equip over 5,500 consumer packaged goods (CPG) brands with the measurement and metrics they need to prove the value of their investment on Instacart.

New First-Party Measurement Capabilities on Instacart 

Brand partners working with Instacart Ads now have access to a pilot testing experience where they can measure true total sales lift, leveraging industry-leading methodology using randomized test and holdout groups to determine incremental sales impact. Brand partners can also pilot A/B testing to gain a more detailed understanding of the performance of different advertising strategies. Advertisers have used A/B testing to compare the results from different bidding strategies on their sponsored product campaigns and will soon be able to compare different display ad campaign tactics as well, including creative and targeting variations.  

Together, these insights enable marketers to make the most informed, strategic decisions about their ad spend.

Driving Incremental Sales Lift for Kellogg

The Kellogg Company is one of the first brand partners to pilot incremental sales lift testing.

Founded in 1906, Kellogg manufactures iconic, beloved brands including Pringles, Cheez-It, Kellogg’s Frosted Flakes, Pop-Tarts, Rice Krispies, Eggo, Mini-Wheats, RXBAR, and many more brands. Kellogg was an early adopter of Instacart Ads when the offering first launched in 2019 and has been a close partner since then, building a winning, multi-format strategy to drive sales and share growth for its key categories across the Instacart Marketplace. 

Kellogg partnered with Instacart’s data science and media analytics team to run a randomized experiment designed to gain insight into the incremental sales lift of its Instacart Ads sponsored product campaigns. The latest study, completed in August this year, revealed a double-digit total sales lift when consumers were exposed to Kellogg’s Instacart Ads campaigns versus when they were not.

“At Kellogg, we know that insight drives innovation. We work closely with our e-commerce partners to measure the work we’re doing together. Experimentation and learning together is at the core of our longstanding partnership with Instacart. With their testing methodology, the results of our latest lift study together showed the significant impact that our Instacart ad campaigns have had on our sales,” said TJ Hanel, Director of eCommerce Demand Platforms at Kellogg. “This kind of reliable, first-party measurement helps us make the best, strategic decisions about our advertising investment.”  

Improving Campaign Performance with Optimization, Automation, Reporting and More

Sales lift testing builds on Instacart’s suite of insights and optimization products, including recently-launched optimized bidding and bid landscape features. These optimization features remove the guesswork for Instacart’s brand partners, offering actionable insights when setting bids and helping advertisers drive more total sales from their sponsored product campaigns. 

We’re proud to expand our measurement capabilities and continue to focus on equipping brands with the metrics and reporting they need to help them better understand their business, identify opportunities for growth, and prove ROI on Instacart.  

Instacart

Author

Instacart is the leading grocery technology company in North America, partnering with more than 1,400 national, regional, and local retail banners to deliver from more than 80,000 stores across more than 14,000 cities in North America. To read more Instacart posts, you can browse the company blog or search by keyword using the search bar at the top of the page.