Tesco TV drives brand sales

Article from The Retail Bulletin, April 26 2004

Advertising on Tesco TV has generated an improved sales performance for brands featured on the in-store network.

Results released by Tesco and JCDecaux show an average 10 per cent uplift in sales for 62 brands involved in trials.

The impact of the digital network being rolled out by the UK’s biggest retailer is being closely watched as store owners and advertisers weigh up the business case for similar networks.

Brands on trial were measured in three test stores where they were advertised on Tesco TV, and compared with six control stores where traditional point of sale promotions were running.

During this period 8,500 customers were interviewed to determine their attitudes to the new medium. The feedback has been integral in shaping the design and content for the network, and showed that customers felt the experience improved their shopping trip through product information and lifestyle tips.

The research, which looked at shoppers' actual dwell time in each zone of the store, showed that ads needed to be shown more frequently than was originally expected. Although the ad frequency wasn't fully optimised in the trial, there was a marked effect on sales. When Tesco TV goes live in 100 stores the ad frequency will be increased from the pilot. This means that the media will potentially have an even greater impact on sales.

JCDecaux, media sales provider for Tesco TV, predicts that tailoring the ads to suit the medium can lead to greater sales uplift. Applied TV, the UK leader in retail networks, has worked with Tesco since 2002 to define and develop the content for Tesco TV and will be key in advising brand owner on developing adverts for the medium.

Spencer Berwin, group sales director, JCDecaux, said: "What the trial results provide is the information brand owners need to create adverts that work on Digital Retail Media and deliver a sizeable return on investment. We're confident that when Tesco TV begins airing next month, brand owners could see much greater performance."

Tess Harris, chairman of the the Chartered Institute of Marketing said: "In today's environment where companies are struggling to make their voices heard, this goes some way towards achieving the marketer's panacea of communicating with the customer, when they want it, where they want it and how they want it."


Notes:

Trials took place across a ten-month period. Sales of 62 product brands were measured in test stores and control stores and compared. In addition, 8,500 customers were interviewed and over 19,000 shopping trips were observed.

Tesco is the UK’s leading supermarket with 850 supermarkets throughout the UK.