Tesco moves in-store TV contract out of JCDecaux

by Daniel Farey-Jones, Brand Republic 16-Aug-06, 11:00

LONDON - Tesco has transferred the sales contract for its in-store TV network out of launch partner JCDecaux and into its below-the-line agency Dunnhumby.

The UK's first supermarket TV network has struggled to convince advertisers since its launch two years ago in 100 stores, when it was touted as a threat to broadcast TV's share of advertising spend.

Tesco has scaled back its ambition to sell the medium to third-party advertisers rather than those with an in-store presence by transferring sales to Dunnhumby, which handles its transaction data and Clubcard programme.

Spencer Berwin, managing director of JCDecaux Sales, said Tesco TV was "increasingly seen by clients as an integral part of their below-the-line strategy".

Dunnhumby's commercial director Peter Gleason said it would work with advertisers to identify the optimum role for Tesco TV with the shopper and analyse customer purchases to measure the medium's effectiveness.

Soon after its launch, there were a number of signs that Tesco TV was not proving to be an unrivalled success. JCDecaux was forced to reduce its rate card by 30% and to make changes to the zonal approach of having different content in different aisles.

Last year, Tesco abandoned plans to extend the network to another 200 stores, and in April this year Sainsbury's pulled the plug on its plans following a small-scale trial.

Further problems came to light this month with Marketing reporting that Tesco store employees were tampering with the screens and turning down the volume after becoming annoyed with the programming.

The change does not affect JCDecaux's contract to sell Tesco's six-sheet portfolio.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum.