Tesco Launching Ads Within Self-Scanning Tech

Tesco is set to introduce advertising to its self-scanning devices and mobile apps in stores, marking a significant shift in its advertising strategy. Although an official launch date has yet to be announced, this initiative opens up new opportunities for more targeted consumer engagement, potentially setting a trend that other supermarkets may follow.

This move represents a major opportunity for Tesco to generate additional ad revenue while enhancing its data analytics capabilities. Despite the growing popularity of online shopping, in-store purchases still account for 87% of Tesco's sales, according to Statista data from 2022. With this large in-store presence, the new advertising model could lead to increased ad spending on their platform by offering more targeted, location-based ads directly to shoppers.

For brands, this development could be a game-changer. It allows them to engage with customers at the point of purchase by advertising deals or promotions based on their proximity to specific products in the store. By reaching shoppers just before they see a product on the shelf, brands can effectively influence purchasing decisions. Tesco has hinted that this advertising feature will be integrated into its retail media business, which could be managed through direct partnerships with Dunnhumby, Tesco's media arm, or even through a self-service platform.

The potential of this initiative extends beyond the current setup. Future developments might include advanced targeting based on a combination of online browsing behavior and in-store purchases, creating a more seamless omnichannel experience. Tesco could leverage its Clubcard data to build detailed audience profiles, helping brands understand household demographics and buying patterns across various product categories, including groceries.

This integration of data and advertising could set a new standard for connecting digital and physical shopping experiences. If you're looking to enhance your retail media strategy or explore opportunities with Tesco Marketplace, feel free to reach out for support!