Hy-Vee Expands Retail Media Advertising
Hy-Vee Inc. has partnered with Instacart to further the grocer’s retail media capabilities. Hy-Vee RedMedia will enhance its advertising solutions by using Instacart’s Carrot Ads, creating a more personalized experience across Hy-Vee.com.
Instacart's Carrot Ads solution will deliver advertiser demand from more than 7,000 brands, helping Hy-Vee create more relevant experiences that drive personalized recommendations and product discovery for its customers. Hy-Vee RedMedia will gain access to Instacart’s ad technology and CPG advertising ecosystem. Advertisers will soon be able to seamlessly extend their Instacart campaigns to Hy-Vee’s e-commerce platform through expanded ad inventory.
"Retail media is a critical driver of the grocery ecosystem, and since launching Hy-Vee RedMedia, we’ve been committed to strengthening our capabilities in this area," said Kathryn Mazza, president of Hy-Vee RedMedia and chief marketing officer of Hy-Vee Inc. "Our partnership with Instacart through their Carrot Ads solution exemplifies how we’re continuing to enhance our offerings by expanding the value we bring to advertisers."
Hy-Vee launched its retail media division RedMedia in September 2023 and continues to build in its capabilities. In January, it teamed up with marketing and advertising agency dentsu to launch an audience-targeting tool called Hy-Vee ID. The new offering, powered by dentsu’s Merkury platform, allows brands to tailor messaging to boost conversion and ultimately lift sales.
"As an innovator in the retail media space, Hy-Vee has largely been ahead of the curve in its commitment to building and growing its retail media capabilities," said Alice Luong, senior director of e-commerce and retail media at San Francisco-based Instacart. "We're creating an even more attractive offering for advertisers to easily stay connected with customers wherever they choose to shop among Instacart’s growing network of retail sites powered by Carrot Ads, which will now include one of the Midwest’s largest grocers. This will also simultaneously improve the customer shopping experience through ad tech capabilities that drive ad personalization and make product discovery easier."
Carrot Ads extends Instacart’s ad technology to support retail partners in growing their own retail media networks on their owned websites and apps. Today, more than 220 retailer banners use Carrot Ads to power their retail media business and offer ads on their e-commerce sites.
Carrot Ads capabilities on Hy-Vee RedMedia will be available to advertisers later this year.
Employee-owned Hy-Vee operates more than 570 business units across nine Midwestern states, with sales of more than $13 billion annually. The West Des Moines, Iowa-based company is No. 38 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
