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According to National Retail Federation data, global spending on retail media advertising will exceed $100 billion by 2025, surpassing TV advertising expenditure.
Tesco plans to expand its network of digital screens to 6,000 by the end of the year, becoming the largest network in Europe. This move is supported by extensive use of personalization and advanced technologies including artificial intelligence and data analysis from their Dunnhumby division.
Get ready for hyperpersonalization
One of Tesco’s key projects is the introduction of next-generation handheld scanners that will enable hyperpersonalized advertising. These scanners will combine Tesco Clubcard data with artificial intelligence, allowing for more targeted and effective advertising campaigns.
In the United Kingdom, a pilot phase of this project is already underway, involving thousands of shoppers. The retail chain will thus be able to offer personalized insights that will help suppliers reach customers more effectively.
According to Tesco, campaigns using digital screens can show a 33% increase in sales and a 34% increase in customer numbers. Thanks to the inclusion of moving elements, advertising is 2.5 times more effective than static displays.
The omnichannel approach combines different media channels to achieve maximum impact. Research shows that customers exposed to multiple channels are much more likely to make a purchase. Customers exposed to three channels are 3.8 times more likely to buy, while those exposed to four channels are 5.3 times more likely to make a purchase.
