ISSAQUAH, WA – Loyal Costco customers who have grown tired of making trips to the wholesaler for their bulk items can now celebrate, because the retailer has discovered a way to make consumers’ lives—and backs—much better: a home delivery service called CostcoGrocery. But along with with the newly-added convenient buying option, the service has also implemented a new paid-search online advertising campaign, which broadcasts the two-day nationwide delivery and a same-day delivery services in specific metro areas.
With the addition of the retailer’s delivery service, Costco is joining the ranks of Amazon’s Whole Foods. Costco’s version of the burgeoning and convenient delivery experience has taken second place, following Instacart, in the U.S. Google desktop text ad impressions, according to AdGooroo’s analysis. The analysis looking at clicks on 38 grocery delivery-related keywords, including “grocery delivery,” “online grocery shopping,” and “grocery delivery services.” Data was collected and analyzed between October 27th through November 9th. It should be noted that this was the first time that AdGooroo identified Costco’s data, so in this first go of it, the retailer is off to the races!
So, how did Costco rank amongst its competitors? According to a recent article by MediaPost, the two-weeks collected data showing that Instacart took 23.5 percent click share. Costco’s second place showcased a 11.4 percent click share. Competitors HelloFresh came in at 8.2 percent, Walmart’s Jet.com showed up at 7.8 percent, and Walmart sauntered in at 7.7 percent. Amazon, who has been the talk of the town because of its recent acquisition of Whole Foods, reportedly got 3.5 percent click share for the keyword group about grocery delivery.
While the difference between Instacart’s and Costco’s click share held a 12.1 percent gap, its share of voice in delivery captured 14.6 percent of impressions, which was right behind Instacart’s 17.1 percent of impressions—a mere 2.5 percent variance.
How will Costco’s new delivery service fare in the broadened scheme of convenient shopping experiences when faced with competitors’ continually evolving services? AndNowUKnow will keep you up-to-date!
