Growth vs. Cannibalization: How to Approach Incrementality Measurement on Instacart with Juan Munoz & Robert Benlloch - Episode 369
Ecommerce Braintrust
· with Juan Munoz & Robert Benlloch
· November 26, 2024
· 24 min
Summary
For ecommerce operators leveraging Instacart, understanding incrementality is crucial to optimize ad spend. This episode cuts through the complexity of cannibalization, offering specific metrics and frameworks unique to Instacart that enable brands to accurately measure the true impact of their advertising and drive sustainable growth beyond organic sales. It's a must-listen for anyone seeking to maximize their return on retail media investments on the platform.
Key takeaways
Differentiate between traditional and placement cannibalization to accurately assess ad effectiveness; traditional cannibalization concerns ads taking credit for sales that would have happened anyway, while placement cannibalization focuses on paid ads replacing organic placements.
Utilize Instacart-specific metrics like Halo Sales, New to Brand, and the Customer Insights tab for market share to gauge incrementality beyond basic sales figures.
Employ Sales per Instacart Weighted Distribution (SDPI) to isolate sales velocity from changes in product distribution, providing a clearer picture of ad impact.
Shift focus from organic sales percentage to market share and total sales as primary indicators of ad spend efficiency and growth on Instacart.
Actively explore and leverage new Instacart features like 'Share of Digital Shelf' and 'Inspirational Ads' to gain competitive advantage and reach new customer segments.
Themes
ad spend optimizationcannibalizationincrementality measurementretail media strategy
Welcome to another episode of The Ecommerce Braintrust podcast hosted by Director of Retail Operations, Jordan Ripley. In this episode, we're joined by Instacart experts Juan Munoz and Robert Benlloch to tackle some key retail media questions: Is my ad spend cannibalizing my organic sales? How should I be assessing my investment for growth? And what are the right measurement frameworks and metrics to use when having these conversations and providing guidance to our clients? Through the lens of Instacart, we'll explore its unique nuances and advantages for measuring and understanding incrementality. Make sure you tune in to find out more! KEY TAKEAWAYS In this episode, Jordan, Robert, and Juan discuss: Defining Cannibalization: Two types of cannibalization: traditional (ads taking credit for sales that would have happened anyway) and placement cannibalization (paid ads replacing organic placements). Understanding concerns about ad investments cannibalizing organic sales. Instacart-Specific Metrics: Overview of metrics unique to Instacart such as Halo Sales, New to Brand, and market share. Importance of the Customer Insights tab for tracking market share and competitive positioning. Sales per Instacart Weighted Distribution (SDPI): <li dir="ltr"
Frequently asked about this episode
What does this episode say about ad spend optimization?
Differentiate between traditional and placement cannibalization to accurately assess ad effectiveness; traditional cannibalization concerns ads taking credit for sales that would have happened anyway, while placement cannibalization focuses on paid ads replacing organic placements.
What does this episode say about cannibalization?
Utilize Instacart-specific metrics like Halo Sales, New to Brand, and the Customer Insights tab for market share to gauge incrementality beyond basic sales figures.
What does this episode say about incrementality measurement?
Employ Sales per Instacart Weighted Distribution (SDPI) to isolate sales velocity from changes in product distribution, providing a clearer picture of ad impact.
What does this episode say about retail media strategy?
Shift focus from organic sales percentage to market share and total sales as primary indicators of ad spend efficiency and growth on Instacart.
What does this episode say about ad spend optimization?
Actively explore and leverage new Instacart features like 'Share of Digital Shelf' and 'Inspirational Ads' to gain competitive advantage and reach new customer segments.
