Gopuff hands onsite adtech to Instacart in retail media alliance
Gopuff, the convenience delivery app, has partnered with competitor Instacart to run its onsite advertising capabilities via Instacart's white-label Carrot Ads technology. The deal, announced in September, also includes Gopuff joining the Instacart Marketplace for rapid delivery in as fast as 15 minutes. Gopuff's head of ads, Michael Peroutka, explains the rationale: leveraging Instacart's demand generation (over 9,000 brand advertisers and a 300-person sales team) to establish a revenue floor while freeing Gopuff's team to focus on bespoke, experiential campaigns that leverage its youth-skewing audience (80% aged 18-34) and vertical integration. The partnership highlights a trend of alliances between competing retailers in retail media. Peroutka emphasizes a shared metric of total contribution profit and 'cubic profitability' as a north star, and criticizes vanity metrics like ROI and ROAS, focusing on moving product.