Instacart and members of Retailer Owned Food Distributors and Associates say that ROFDA wholesalers, representing more than 2,250 stores, will use Carrot Ads to power their retail media networks. This partnership enables advertisers to drive sales at thousands of local independent grocers, according to a news release.
"This is one of the largest examples of cooperation and collaboration across the independent grocery industry. Our goal is to equip grocers with the tools, technology, and talent they need to engage customers efficiently and succeed in an ever-changing industry," Jeff Pedersen, president and CEO of ROFDA, said in the release. "By strengthening our partnership with Instacart and selecting Carrot Ads as a primary component of our retail media network, we're paving the way for local retailers and their wholesalers to innovate and connect with brands in new ways."
Carrot Ads helps retailers and their wholesalers establish and grow their retail media networks on their owned and operated websites and apps, according to Instacart.. With Carrot Ads, wholesalers and their retailers gain direct access to Instacart Ads' grocery advertising team, offering tools to monetize their websites and providing valuable data and insights to grow their business and strengthen customer relationships.
"This group of ROFDA wholesalers collectively offer our CPG marketer partners the opportunity to reach 24 million households, a quarter of all households in the U.S. — many of which are in underserved areas, " Mike Violette, ROFDA board chairman, said in the release. "We're thrilled to partner with Instacart to provide the support and technology our independent retailers need to thrive, enhancing the shopping experience for their customers while strengthening their presence in the digital landscape."
Initial ROFDA participants include but are not limited to Associated Food Stores, URM Stores, Piggly Wiggly Alabama Distributing Company, Associated Grocers of New England, Associated Grocers of Baton Rouge, and Affiliated Foods Amarillo, the release said.
"As shopper marketing budgets have grown, a significant amount of that funding has been directed towards larger retailers. Independent retailers want to participate, but have not had the tools or scale to do so until now. Instacart is committed to helping local independent grocers succeed and we're excited to help them build strong partnerships with brand advertisers to tap into the booming retail media flywheel," Nick Nickitas, general manager for local independent grocery at Instacart and founder of Rosie, said in the release. "This partnership reinforces our dedication to supporting retailers and brands of all sizes, aiming to boost their sales and profitability."
Retail media continues to be one of the most effective advertising channels, offering brands closed-loop insights, a highly engaged audience and a direct path to purchase, according to the release. These networks also unlock new revenue streams, improve customer experiences and build loyalty for retailers and their wholesale partners by making it extremely easy to stand up a retail media business, the company said.