The news: Instacart is trying to bridge the gap between the online and in-store grocery shopping experience with a series of new ad formats that it says will “spark out-of-aisle inspiration” and help consumer-packaged goods (CPG) companies with discovery and brand engagement.

How it works: The new ad units include:

• Recipes, which brands can use to showcase one of their products alongside complementary items. For example, customers shopping for chicken may come across a sponsored recipe for chicken pot pie featuring a pastry dough brand.
• Occasions, which allows CPGs to create curated product collections related to events or moments like pizza parties or summer barbecues.
• Bundles, which bring together related products (like laundry detergent, dryer sheets, and fabric softener) to offer more convenience to shoppers.

The offerings enable advertisers to foster discovery and drive impulse purchases among consumers even when they’re searching for specific products—much the same way that grocers do by putting complementary items like tortilla chips and salsa next to one another on shelves.

Early results are promising: Mondelez, The J.M. Smucker Co., and Hormel each successfully used sponsored recipes to engage shoppers and drive awareness of their product portfolios outside of their traditional aisles.

The big picture: Ad revenues are key to Instacart’s growth as fierce competition from DoorDash, Uber, and grocers themselves erodes its share of the intermediate grocery delivery market.

• The company recently made a major push to grow its off-site retail media capabilities by inking partnerships with YouTube and The New York Times—moves Instacart says will help its brand partners better target high-intent customers and measure campaigns more effectively.
• We expect Instacart’s ad revenues to surpass the $1 billion mark for the first time this year, although growth will begin to slow as it faces stiffer competition for CPG ad dollars.