Tuesday, June 14, 2005

Update on Tesco digital signage deployment

Mediaweek.co.uk has a very in-depth article about the current performance of the Tesco in-store television network, one of the largest in Europe. Some key quotes:

"[H]as Tesco TV lived up to expectations in its first year and what does this mean for the rest of the sector? The short answer is that while the in-store channel is still on course, it seems to be encountering a few speed bumps on the way.

"The number of advertisers on Tesco TV is still lower than many had predicted and a few weeks ago JCDecaux, which holds the sales contract, was forced to slash its rate-card prices."

"'What's been interesting, 12 months down the track with Tesco TV, is who gets it and who doesn't,' [Spencer Berwin, group sales director at JCDecaux] says. 'It's not entirely surprising that advertisers themselves understand their brands, how they're set up on the shelf and how customers use them – they're very much used to the in store experience and understand how it works for them. It's more challenging for more mainstream agencies to get to grips with it.'"


"Within the past few weeks, supermarket chain Sainsbury's has launched a six-month trial of digital TV at three of its largest stores – in south London, Ipswich and Edinburgh. Each store has about 120 TV screens, with 150 screens dedicated to specific product areas.

"Sainsbury's says 70% of the output relates to customer information, helpful consumer tips and the company's own brand products, with the remaining 30% advertising branded products, including Heinz, Coca-Cola, Müller, Goodfellas, Kingsmill and Bernard Matthews."

I recommend you read the whole article, which can be found here.

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