Instacart and DoorDash Reimagine the Impulse Buy

What does impulse shopping look like in the multichannel digital age? 

It’s an important question grocery store retailers must answer. Consumers are likely to impulse buy while shopping for groceries (50%) and impulse buying accounts for up to 62% of grocery sales revenue (and up to 80% in some product categories), according to Capital One Shopping Research.

Two companies, Instacart and DoorDash, are trying to answer this question. Both recently announced new advertising solutions that bring brand ads to new places. Instacart has expanded in-store advertising on its AI-powered Caper Carts to its more than 7,000 brand partners, while DoorDash announced Banner as a new ad format on DoubleDash that aims to inspire add-on purchases.

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In-store: Caper Cart Advertising 

At its core, Instacart’s move seeks to capture impulse sales in the grocery store aisle, but it’s also providing brands a way to reach customers online and directly in the aisles with a single campaign.

If a brand launches an ad campaign through Instacart Ads Manager, customers browsing the Instacart Marketplace can see the ad online, while in-store customers can see it on the digital screen of the Caper Cart. Customers using the smart carts can add the physical advertised item to their baskets and check out directly from the Caper Cart, which are available at grocery stores across more than 60 cities in the US, including ALDI, Kroger, Schnucks, and Wakefern.

“High-value shoppers tend to engage in multiple ways, such as browsing on apps, shopping in-store, and using pickup or delivery services,” says Grocery Doppio’s “State of Digital Grocery: Evolve to Improve Profitability” report. “This cross-channel engagement creates more touchpoints and reinforces brand loyalty, encouraging these shoppers to return frequently and spend more per visit.”

The Instacart Ads ecosystem enables brands to connect with consumers through cohesive, omnichannel campaigns. And CPG brands (93%) want the ability to tie in digital and store engagement, according to Grocery Doppio’s “State of Digital Grocery: In-Store Media Monetization” report. 

While only 13% of grocery sales come directly from online or digital channels, a significant 70% of transactions involve a “digital touch”— meaning shoppers frequently interact with the brand online before making a purchase — according to Grocery Doppio’s “State of Digital Grocery: Evolve to Improve Profitability” report.

“A truly omnichannel approach, where shoppers interact with the brand across digital and in-store channels, is a key driver of customer value for grocers,” the report notes. 

Additionally, Grocery Doppio’s “State of Digital Grocery: In-Store Media Monetization” report found 70% of grocers plan to adopt in-store media solutions within the next 18 months to seize the lucrative opportunities presented by RMNs.

According to Instacart, on average, customers spend more than 30 minutes shopping in-store with a Caper Cart. For advertisers, it is an opportunity to influence a consumer's purchasing decisions in real-time in the aisles of a grocery store. The new capability was piloted earlier this year with brands like Mondelēz, Diana's Bananas, and Talking Rain Beverage Company.

“This in-store ad enabled us to seamlessly connect with more consumers during key seasonal moments, featuring RITZ crackers and OREO cookies for the Big Game, Sour Patch Kids for Valentine's Day, and HALLS during cold and flu season,” Mindy Shaltry, Senior Director, Omnichannel Marketing & Activation, Mondelēz International, said in a press release. 

Online: Banner on DoubleDash 

With Doordash’s DoubleDash consumers can add items across multiple stores and categories to their original order, with no additional delivery fee or order minimum. As the first position on DoubleDash, the new Banner ad format gives advertisers a way to reach customers in their post-checkout experience on restaurant orders, hoping to inspire additional add-on purchases. 

Eight in 10 CPG firms (84%) want improved targeting capabilities from their grocery partners, Grocery Doppio’s “State of Digital Grocery: In-Store Media Monetization” report finds. Banner on DoubleDash seeks to help brands increase awareness, reach new consumers, and build habits. The grocery categories currently available for Banner on DoubleDash are adjacent to restaurant orders, such as Drinks, Alcohol, Sweets, Snacks, and Pantry, with more coming later this year. Ben & Jerry’s and Red Bull, for example, have activated and seen sales lift for their brands, according to Doordash. 

“With [the] launch, advertisers can now reach shoppers who are eager to try new products at the point of purchase,” Toby Espinosa, VP of Ads at DoorDash, said in a press release. 

Driving shoppers to try grocery store items that weren’t “on the list” has expanded far outside the store checkout aisle. Whether an add-on beverage to a restaurant order or a sale item tossed into a smart cart, Instacart and Doordash are reimagining what impulse shopping looks like in the digital age.