Podcast Summary: The CPG Guys – Enabling Immersive Brand Experiences with Instacart's Ali Miller & Tim Castelli
Podcast: The CPG Guys
Hosts: Peter V.S. Bond & Sri Rajagopalan
Guests: Ali Miller (General Manager of Advertising, Instacart), Tim Castelli (VP, Global Advertising Sales, Instacart)
Date: August 23, 2025
Episode Theme:
This episode explores how Instacart is enabling immersive, omnichannel brand experiences through its advanced retail media and advertising offerings. Ali Miller and Tim Castelli share Instacart’s strategy for seamless brand engagement across online, in-store, and off-platform environments, with a deep dive into the roles of artificial intelligence, measurement, and simplification in the rapidly-evolving retail media network (RMN) ecosystem.
Main Themes & Purpose
- Instacart’s Evolving Vision for Retail Media: Moving beyond an e-commerce advertising site to an omnichannel, data-driven platform integrating online, in-store, and off-platform shopping and media exposure.
- Differentiation in a Crowded RMN Landscape: How Instacart’s tech- and data-focused model distinguishes it from traditional retailers, offering unique benefits to both brands and retailers of all sizes.
- Role of AI & Machine Learning: Deploying advanced technology to optimize ad delivery, targeting, and creative, while improving efficiency and performance measurement.
- Solving Industry Fragmentation: Instacart’s approach to unifying retail media experiences in a fragmented RMN environment.
- Measurement & Incrementality: Providing brands with robust tools for proving causal impact, transparency, and data accessibility.
Key Discussion Points & Insights
Instacart’s Vision for the Future (Omnichannel Retail Media)
Ali Miller [05:52]:
- The future is omnichannel: not just ads on a website, but cross-channel engagement from streaming TV and social media, to in-store.
- Using first-party data to connect the consumer journey and deliver outcomes for both consumers and brands.
“Retail media is not just about advertising on an e-commerce site. It's a capability that can really connect advertising across... connected TV, social... and even in-store.” – Ali Miller [05:52]
Instacart’s Differentiation in the RMN Space
Tim Castelli [08:09]:
- Instacart is a technology and retailer enablement company, not a retailer itself.
- Provides a platform for over 1,800 retailers and 100,000 storefronts, including technology deployments across other e-commerce and brick-and-mortar brands.
- Integration of smart shopping carts (Caper) brings digital advantages in-store.
- Unique, high-fidelity first-party data enables off-platform campaign targeting and closed-loop measurement.
“We’re not a retailer... Our mission is, can we provide technology products and services to allow retailers of all sizes... to participate in this e-commerce trend?” – Tim Castelli [08:09]
Ali Miller [11:21]:
- Philosophy: grow the overall pie for retailers of all sizes, rather than competing as a retailer.
- Minimizes fragmentation of technology for brands by creating a unified commerce media network.
The Role of Artificial Intelligence (AI) and Machine Learning
Ali Miller [13:28]:
- Machine learning has driven Instacart’s ad optimization from the outset, allowing hands-off yet highly effective campaign management (e.g., automated bidding for ROAS, new-to-brand, product launches).
- Generative AI is used to:
- Curate personalized consumer experiences at scale (e.g., custom product carousels).
- Automatically build landing pages and creative assets for brands.
- Optimize budgets across multiple formats.
- Bring small/emerging brands to the forefront based on intent signals.
“From the very beginning we took a highly optimized and machine learning based approach... This has really allowed us to focus on driving the outcomes that matter.” – Ali Miller [13:28]
Enabling Full Funnel Brand Engagement
Tim Castelli [18:09]:
- Instacart’s ads products span the funnel: from bottom-funnel (ROAS-focused) to upper/mid by introducing shoppable display, video, inspiration ads, and co-marketing programs (e.g., Super Bowl campaign).
- Off-platform media targeting (CTV, OLV, social) closes the loop between brand-building and conversion.
“If you’re only using [retail media] for lower funnel, you’re probably underutilizing the capabilities.” – Tim Castelli [18:09]
Unique Insights & Data Transparency
Ali Miller [21:12]:
- Introduction of the Consumer Insights Portal for brands–real-time, actionable data across all of Instacart’s diverse retailers.
- Highlights unique digital behaviors, e.g., substitution data: tracking if a consumer substitutes, refuses to substitute, or switches pack sizes—valuable for both challengers and category leaders.
- Commitment to continually productizing data and improving transparency.
Industry Demand: Measurement, Incrementality & Transparency
Tim Castelli [24:18]:
- Industry trend toward breaking down silos between eCommerce and marketing functions for unified, outcome-driven measurement.
- Instacart focuses on best-in-class, MRC-accredited incrementality testing, third-party verification (with Circana), and cross-platform lift studies.
“We’re now in meetings with the Chief Commercial Officer and the CMO. They're trying to... drive an overall outcome... and they're all looking for incrementality and growth.” – Tim Castelli [24:18]
Ali Miller [32:54]:
- For brand CFOs: focus on true causal incrementality, new-to-brand, and efficiency metrics; use platform and third-party studies for a 360° measurement story.
Integration with Marketing Mix Models (MMM)
Ali Miller [33:53]:
- Existing MMMs need evolution to fairly incorporate retail media’s unique data signals.
- Instacart is collaborating with IAB and making data available via clean rooms for better cross-channel comparison and analytics.
Addressing RMN Proliferation & Ecosystem Fragmentation
Tim Castelli [36:48]:
- There are “way too many RMNs” leading to inefficiency for brands/agencies.
- Instacart aims to simplify: one platform, centralized access to >1,800 retailers & 240+ e-commerce sites, and consistent measurement.
“I think we offer a really compelling solution to this fragmentation... from one point, you can access 1,800 retailers... consistent technology and self-service tooling.” – Tim Castelli [36:48]
Ali Miller [38:14]:
- Instacart’s Carrot Ads platform enables retailers to have individual relationships with brands, but within a unified ecosystem, so brands don’t compete against themselves.
Tim Castelli [39:06]:
- Instacart’s tech focus and product/engineering investment allows it to deliver at a scale and adaptability that’s uncommon among media or retail companies.
Notable Quotes & Memorable Moments
- “Retail media is not just about advertising on an e-commerce site... It's about a capability that can really connect advertising across the connected TV streaming platform... social with Meta and Pinterest... and actually interacting and buying products on an e-commerce site... also in the grocery store.” — Ali Miller [05:52]
- “We’re not a retailer... What we are is a technology company, grocery technology company, or a retailer enablement company.” — Tim Castelli [08:09]
- “From the very beginning we took a highly optimized and machine learning based approach... This has really allowed us to focus on driving the outcomes that matter.” — Ali Miller [13:28]
- “If you’re only using [retail media] for lower funnel, you’re probably underutilizing the capabilities.” — Tim Castelli [18:09]
- “Incrementality is the word that's kind of stuck... they're looking for incrementality and growth. We're best in class showing incrementality.” — Tim Castelli [24:18]
- “The number one ask... was better measurement of Instacart... our Instacart growth and our results is one of the most important things we need to get better at.” — Sri Rajagopalan [27:21]
- “There’s way too many RMNs, right?... I think we offer a really compelling solution to this fragmentation.” — Tim Castelli [36:48]
- “It helps retailers participate in a way that fits within that simplification... It's all part of a unified system.” — Ali Miller [38:14]
Important Timestamps
- 05:52 – Ali Miller on Instacart’s omnichannel retail media vision
- 08:09 – Tim Castelli explains how Instacart is a tech-first retailer enablement platform
- 11:21 – Ali Miller on Instacart’s differentiated approach and size spectrum of retailer partners
- 13:28 – AI and machine learning’s central role in Instacart’s ad platform
- 18:09 – Tim Castelli on full-funnel strategy and creative ad products
- 21:12 – Ali Miller discusses the new Consumer Insights Portal and unique Instacart data
- 24:18 – Tim Castelli on industry’s move to unified, incrementality-focused measurement
- 32:54 – Measurement priorities if reporting Instacart results to a C-suite
- 33:53 – Integration with broader media mix models (MMM) and transparency efforts
- 36:48 – Addressing RMN proliferation and fragmentation; Instacart’s unique value and simplification
- 38:14 – Carrot Ads platform for seamless retailer and brand participation
Summary and Takeaways
- Instacart is a technology-driven, retailer enablement platform, not a traditional retailer, playing a unique, unifying role in the evolving RMN landscape.
- First-party data, AI, and machine learning power dynamic, high-performing brand engagements across platforms, channels, and formats—empowering both large and emerging brands.
- Full-funnel capability and advanced measurement (including incrementality and real-time insights) allow brands to optimize for outcomes and prove business impact.
- Simplification and consolidation are Instacart’s answers to RMN proliferation, offering a centralized solution for brands and retailers to navigate the complexity.
- Transparency, collaboration, and ongoing innovation (e.g., in MMM and clean rooms) underpin Instacart’s approach—helping partners keep pace with rapid industry change.
This episode provides a deep, candid dive into Instacart’s vision and pragmatic approach for growing immersive, measurable brand experiences amid digital transformation and retail fragmentation.
For further guest info or to connect with Instacart:
Check the episode’s digital show notes for direct links to guest profiles and Instacart resources.