NBCUniversal, Instacart ink retail media data collaboration

NBCUniversal and Instacart have expanded an existing strategic partnership through a new retail media workstream that’s meant to open up audience-based advertising opportunities for CPG (consumer packaged goods) brands on Peacock.

The partnership involves first-party data collaboration, with plans to launch on streaming in the second quarter and then expand to linear. According to NBCU advertisers will be able to reach in-market consumers on NBCU’s streaming content and measure the impact of their campaigns with access to ad exposure and purchase data. As of the end of Q1 Peacock counted 34 million subscribers, after adding 3 million in the period.

 “We’re committed to helping CPG brands connect with and inspire high-intent consumers wherever they advertise,” said Tim Castelli, Vice President of Global Advertising Sales at Instacart, in a statement.  “Soon, NBCUniversal advertisers will be able to leverage Instacart’s first-party audience data to enhance their streaming campaigns and prove their campaigns’ efficacy with our closed-loop measurement. Consumers can see a CPG’s ad on streaming and get that product delivered to them via Instacart in as fast as an hour – it’s a win-win for both consumers and brands.”

NBCU said it’s expanding the partnership with Instacart to not only bring value and a strong experience to joint customers but deliver that same commitment to advertisers.

 “Advertisers are increasingly prioritizing strategic audiences, and with this partnership, CPG brands will be able to connect the next generation of grocery shoppers in a highly engaging environment,” said Alison Levin, president of NBCUniversal Advertising & Partnerships, in a statement. “We will be leveraging NBCUniversal’s full portfolio and market-leading daily reach, combined with Instacart’s measurement & data capabilities, to drive results for marketers.” 

NBCU and Instacart have been partners since last November, when the media company’s Peacock Premium streaming service became available as part of all Instacart+ memberships in the U.S. at no extra cost.  Now the two are teaming up to enhance audience-based buying for advertisers.

CPG brands in particular are expected to dole out dollars on digital video this year. A recent forecast from IAB pegs CPG as the leading category contributing digital video ad spend in 2024, growing an estimated 20% this year to $12.6 billion

And first-party audience data and commerce elements are two areas that NBCU has been working to bolster for its streaming properties.

That includes the creation of over 300 emotion-based AI-powered audience segments and the introduction of shoppable TV experiences for select Bravo shows on Peacock, including with Walmart. On the CPG front, ahead of the upcoming 2024 Paris Olympic Games NBCU introduced a feature for Peacock called “Virtual Concessions” where the company plans to partner with last-mile food and beverage delivery services and prompt viewers to order that last-minute snack or meal before settling in for a TV binge session or big game. NBCU’s also been working on privacy-focused first-party data sharing through a pilot of Google’s PAIR (Publisher Advertiser Identity Reconciliation) tool with advertisers.

It’s also not the only streamer to partner with Instacart. Last April Roku teed up a collaboration with the delivery service that paired the streaming platform’s first -arty data with purchase data insights from Instacart to measure the impact of streaming ads on Roku on e-commerce buys.

And streamers and retailers are finding mutual benefits as they look to leverage first-party and purchase data to better target and measure impact of ads and prompt sales. A separate forecast by Advertiser Perceptions expects over 16% U.S. ad spend growth for connected TV to reach $21.45 billion in 2024. Retail media ad spend, meanwhile, is projected to surpass $81.6 billion, including an over $20 billion estimated in offsite programmatic retail media advertising. For more on why advertisers are looking to leverage retail media via CTV read here and here.