Hy-Vee RMN Deploys Carrot Ads Solution; Instacart Extends Ad Placements to Smart Carts

The 570-store Midwestern supermarket retailer Hy-Vee will expand its partnership with Instacart by adopting the platform’s Carrot Ads solution. This new integration will give Hy-Vee RedMedia access both to Instacart’s ad technology and its CPG advertising ecosystem, which delivers advertiser demand from more than 7,000 brands.

All those brands will also now have access to in-store advertising on Instacart’s AI-powered Caper Carts smart carts, which are currently deployed at retailers including Aldi, Kroger, Wakefern and Schnucks. The ads will be inventory- and aisle-aware, meaning they will only be displayed on the carts’ screens when shoppers are in relevant store aisles and the items are in stock. (More details below.)

For Hy-Vee RedMedia advertisers, the Carrot Ads capabilities will be available later in 2025. Carrot Ads are designed to support Instacart retail partners in growing their own retail media networks; currently, more than 220 retailer banners use the service to power their retail media businesses and offer personalized ads on their ecommerce sites.

“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 Ecommerce and Retail Media at Instacart in a statement. “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.”

A Connected Grocery Shopping Experience

In February 2024 Hy-Vee began leveraging Instacart’s Fulfillment-as-a-Service to integrate same-day delivery fulfillment capabilities into its owned and operated websites. Hy-Vee first partnered with Instacart for deliveries in 2018.

“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 in a statement.

In July 2024 Hy-Vee implemented digital shelf tags powered by VusionGroup. Additionally, RedMedia partnered with Fluent to offer online shoppers post-purchase offers for products that go beyond the retailer’s grocery assortment. The RedMedia retail media network partnered with in-store retail media solution Grocery TV in December 2024.

Caper Cart Pilot with 50 CPG Brands

Instacart’s expansion of ad placements to its Caper Carts follows a pilot earlier this year that included 50+ CPG partners — from category leaders like Mondelēz to challenger brands such as Diana’s Bananas and Talking Rain Beverage Company.

The expansion, which will begin in April 2025, allows advertisers to reach consumers at key points in the shopper journey. For example, chocolate-dipped frozen banana brand Diana’s Bananas could launch an Easter campaign through Instacart Ads Manager, showcasing its various flavors both online and in-store. Customers browsing the Instacart Marketplace could see the ad online, while in-store customers could see it on the Caper Cart screen. Shoppers that see the ad while they are in the frozen aisle could add the item to their basket and check out directly from the cart.

“Diana’s has been crafting premium chocolate-covered frozen bananas since 1984 and today, we’re proud to have nationwide retail distribution,” said Stan Keller, Chief Strategy and Finance Officer at Diana’s Bananas in a statement. “Instacart has been an important partner in our marketing strategy, helping us grow sales on their platform by 40% last year. Our recent pilot with Caper Carts allowed us to syndicate our digital campaigns directly into physical stores, reaching customers at the perfect moment – while they’re making decisions in the frozen aisle.”

Last month, Instacart executives revealed that the company plans to further its impact in brick-and-mortar stores by offering services such as Caper Carts and its FoodStorm order management offering.