CANNES, LIONS - Instacart used its presence at Cannes Lions last week to unveil an Ads Studio and a short-form vertical video feed inside its app, marking the grocery delivery platform's latest push into upper-funnel advertising. The announcements, led by Ali Miller, general manager of advertising at Instacart, signal how retail media networks are moving beyond sponsored search and display into channels built for creative brand building.
Ads Studio bets on brand collaborations
The new Ads Studio invites brands to co-create Instacart campaigns tied to cultural moments. Miller said Instacart wants to enter brand conversations "before they even have fully arrived at a concept," letting the platform's first-party data shape ideation, execution and measurement. The studio builds on last year's Super Bowl activation that featured cameos from a range of CPG mascots and draws on Instacart's in-house agency Local Produce.
"Leaning into the opportunity to connect commerce and creative, this is the place to do that," Miller said in an interview at Cannes. The studio positions Instacart's retail media arm as a creative partner rather than a pure performance channel.
Immersive Feed targets discovery via vertical video
Instacart also introduced an Immersive Feed that serves short-form vertical videos lasting five to 30 seconds inside the app. The format resembles what users see on TikTok, with brands supplying recipe and product recommendation clips that include add-to-cart buttons. Hellmann's, Kettle & Fire, Rachael Ray Nutrish and Siete Foods are piloting the experience.
Miller described vertical video as "the perfect format" for recipe content, product demos and beauty tutorials. Instacart plans to expand the feed to include organic content through partnerships and sponsored creator integrations, aiming to drive both discovery and direct transactions.
AI assistant will get ads later this year
Instacart also outlined its approach to an AI-powered shopping assistant that helps users solve tasks like planning gluten-free meals for a family. Miller said Instacart will "likely" begin experimenting with ads inside the assistant in the second half of 2024, though the rollout will be deliberate. "We really want to make sure that it's a two-way street," he said, emphasizing customer feedback over a rush to monetize. Instacart's ad revenue grew 16% year over year to $286 million in the first quarter.
Where the assistant falls in the marketing funnel remains an open question. Miller floated possible ad formats such as sponsored recipes, occasion-based shopping lists, deal promotions and product exploration prompts. "My hypothesis is that we are going to be able to see more of this upper funnel, kind of mid-funnel-y behavior," he said. These moves reflect a broader push by retail media players to use AI for Marketing as a way to engage consumers earlier in their purchase journeys.
Why this matters for marketers
Instacart's announcements show retail media networks aggressively moving into brand advertising, not just bottom-of-funnel conversion. For marketers, that means more ways to reach consumers with creative, full-funnel campaigns that tie brand storytelling directly to first-party data and measurable transactions. The expansion of AI-assisted shopping will likely accelerate this shift, creating new inventory but also raising the bar for user-friendly ad formats that don't erode trust.
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