Tesco in-store TV falters over lack of advertisers

by James Quilter, Marketing 03-Jan-06, 10:00

LONDON - The future of Tesco’s much-trumpeted in-store TV channel, Tesco TV, is in doubt after failing to persuade major advertisers to sign up.

Tesco became the first major supermarket to roll out an in-store TV network in May 2004, when it invested millions of pounds in its
development and unveiled plans to carry the channel in 300 of its biggest stores.

However, the roll-out has stalled at 100 stores and no more screens have been installed in new large-format Tesco Extra stores.

According to insiders, the chain is considering taking the channel out of its revenue generation team and plans to put greater emphasis on activity such as trolley stickers and window banners.

The original intention was for Tesco TV to divert revenue from TV advertising. But its sales house, JCDecaux, was forced to slash its rate card by 30% in early 2005 following poor take-up.

Major advertisers are understood to be unhappy about the network and have cited the placement and intrusive nature of screens as problems to be addressed.

A Tesco spokeswoman admitted the channel was under review, adding: 'It's a relatively new product still in development.'

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