As brands focus on consumer price uncertainty, Instacart is turning to coupons to drive ad sales.
The grocery aggregator announced Wednesday (November 30) the launch of a promotional suite of advertising products for consumer packaged goods (CPG) brands. It provides consumers with self-service options to display personalized deals, promotions and coupons.
“With average grocery prices rising, we are proud to unlock more ways for consumers to save money and connect with their favorite brands and retailers through Instacart,” said Instacart. Ali Miller, vice president of advertising products, said in a statement. “With the launch of his new Instacart promotions, all of our brands and his partners are now able to set up coupons and promotions that deliver meaningful business results while offering consumers more savings opportunities. .”
The news comes at a time when brands face the challenge of striving for shopper spending, as rising prices are pushing many consumers to switch to lower-priced options. The October edition of Consumer Inflation Sentiment: Consumers Bow to Belt Fastening, a survey of more than 2,600 consumers conducted in September by PYMNTS, found that food 37% of shoppers in retail stores reported purchasing low-quality products. Cut spending in the face of inflation.
Instacart isn’t the only grocery store to leverage data-driven digital coupons to drive advertising revenue in the face of consumer price uncertainty (and consequent concerns over CPG brand sales volumes). For example, Kroger offers advertisers a deal-focused solution, leveraging insights into consumer behavior to ensure effective and targeted promotions.
In a recent interview with PYMNTS, Barbara Connors, vice president of commercial insights at 84.51°, a marketing-insights subsidiary of the grocery giant, said that targeted deals and coupons could mitigate the extent of this trade-down, We argued that we could offer brands a way to reach these. Price sensitive shopper.
“Historically, the reason someone stays loyal to a brand may no longer hold, because people are forced to make tradeoffs they don’t want to make because of financial constraints,” Connors said. ”Connors said, adding that coupons and special offers are possible. Helps maintain their loyalty.
74% of grocers believe consumers are very or very likely to I understand. Switch merchants if digital coupons or offers are not offered.
Get the study: A Major Retailer’s Innovation Mission: Convenience and Personalization
Additionally, the results of the PYMNTS survey, “Decoding Customer Affinity: The Customer Loyalty to Merchants Survey 2022,” produced in collaboration with Toshiba Global Commerce Solutions, surveyed 2,000 US consumers and 42% say their preferred rewarded loyalty program increases loyalty to merchants.
Read the report: Decoding Customer Affinity: Customer Loyalty for 2022 Merchant Survey
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While some consumers are turning to storing their payment credentials with merchants for convenience, security concerns keep others hesitant. In “How We Pay Digitally: Stored Credentials Edition,” in collaboration with Amazon Web Services, PYMNTS surveyed her 2,102 US consumers to analyze consumer dilemmas and how merchants overcome holdouts clarified.
