Tesco has launched video advertising for brands on its website and app, and the opportunity for marketeers to run full ‘store wrap’ campaigns at 50 stores.
The move marks an “expansion of Tesco’s creative canvas” the supermarket said, as it continues to ramp up its retail media offering.
Brands can now run short-form video banner ads across Tesco.com and the Tesco app, which has more than 16 million users. Video ads have “significantly higher engagement than traditional broadcast media”, particularly among a younger age demographic, the supermarket said.
Through its Tesco Media & Insight Platform, the supermarket also unveiled new capacity to run ‘store wrap’ advertising – where whole outside walls of superstores become billboards – at up to 50 locations in what it called a “retail first”. The wraps “transform entire storefronts into eye-catching brand showcases” Tesco said. PepsiCo was first to wrap a Tesco store earlier this year, displaying a 46m-wide and 10m-high ad on the entrance wall to the retailer’s Vauxhall superstore, marking its sponsorship of the UEFA Champions League.
“As retail media continues to grow and expand, Tesco is leading the way,” says Tash Whitmey, MD of Tesco Media. “We use smart insights from our growing Clubcard base to build refined audiences, offering precision at scale. Along with our expanding creative canvas, we’re able to create immersive omnichannel brand activations that enhance the customer experience and drive business growth, positioning us as a great partner for retail media success.”
Tesco Media & Insights – which launched in 2021 – also today announced a “comprehensive new measurement framework to demonstrate the full-funnel impact of retail media campaigns” which has been built in collaboration with advertisers, leading agencies and industry bodies to “set a new industry standard for retail media measurement”.
Earlier this year, Tesco urged suppliers to invest in the massive upscaling of its retail media network, claiming that digital growth will make the medium bigger than television by the end of 2025. The supermarket told suppliers the number of digital ad screens in Tesco stores would more than treble to 6,000 by the end of this year.
Most major grocers now offer retail media opportunities to brands, capitalising on the fact that selling ads on the channels they own – covering both online and in store – offers “robust margins” of 70% to 90%, according to research by Boston Consulting Group.
Spend globally on retail media is poised to grow a further 10% this year, after reaching $128.2bn in 2023, according to WARC Media’s latest Global Ad Trends report. In the UK, retail media’s value (excluding Amazon) totalled £283m in 2023, and is also growing, up 12% from the year before according to IAB UK/PwC.
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