Kodiak Grows Their Baskets 2.2x on Instacart with Promotions

As the leading grocery technology company in North America, Instacart works with grocers, retailers, and our CPG brand partners to transform how people shop. That is a big, complex task, but what it ultimately involves is people, expertise, and technology coming together to enable great things.

Continuing to evolve how people shop, we developed ways for our CPG brand partners to engage consumers with relevant promotions right at the point of purchase. Instacart supports several types of promotions— ‘buy X, get $Y off’ and ‘spend $X, get $Y off’, with a ‘free gift’ offer being currently tested in a pilot project. 

Promotions provide ways for advertisers to strengthen their paid media strategies on Instacart. Our data suggests that promotions can contribute to driving sales, with 88% of consumers building bigger baskets when they redeem a stock up and save promotion.^* 

Above an example of ‘buy X, get $Y off’ promotion

Promotions running on Instacart leverage the power of our robust data and holistic understanding of consumer insights to reach consumers with compelling offers at the point of purchase. And when attached to other ad campaigns they can help close the gap between consideration and conversion, reducing friction on the path to purchase by delivering clear and tangible savings. 

Advertisers can set up, manage, and report on their promotional campaigns through Ads Manager, the self-service portal for Instacart Ads. After setting up promotions, they can easily ‘attach’ it to their other ad campaigns to leverage the targeting of that ad campaign and amplify the reach of their promotions. Ad campaigns, in turn, benefit from promotions by having a built-in incentive for consumers seeing the ad to purchase the advertised products.

One CPG that has been having success with promotions and advertisements on Instacart is our brand partner, Kodiak. They came to Instacart in Q4 of 2022 with the goal of expanding awareness and trial to their portfolio outside of Frozen Waffles and Pancake Mix. To achieve this, Kodiak ran a Stock up and Save Coupon across their total portfolio of products where consumers could Save $5 on their order when they spent $25 on Kodiak products.

“Instacart and Kodiak have a unique partnership in that our target consumers are very much aligned. Our key demographic were early adopters of Instacart,” said Casi Reichardt, Senior Director of Shopper Marketing, Kodiak, “which contributes to our success on the platform. Kodiak over-indexes on Instacart in terms of category share versus total brick and mortar.”

The coupon resulted in higher cross shop within Kodiak’s portfolio, with a 100% increase in the average categories per basket from Kodiak,^* among consumers who redeemed the coupon, driving trial for Kodiak products like Cups and Granola Bars. Additionally, when consumers redeemed the coupon, their baskets were 2.2x bigger in dollar value than baskets without redemption.^*

“Data has been a huge factor in proving out the value of advertising on Instacart. The more sophisticated Instacart is able to get in terms of sharing data and rolling out new targeting capabilities, the more strategic we can be in the future.”

^*Prior results do not guarantee future outcomes. 

Source: Analysis of Instacart promotions live between Jan 2023 – Apr 2023. 

Instacart

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Instacart is the leading grocery technology company in North America, partnering with more than 1,500 national, regional, and local retail banners to deliver from more than 85,000 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.