Tesco has agreed a “landmark” partnership with the world’s biggest media-buying business as part of its drive to ramp up its retail media activities.
The tie-up between Tesco’s dunnhumby-powered Media and Insight Platform unit and WPP-owned GroupM is expected to “drive best-in-class delivery of data-led solutions, education and innovation across all facets of retail media”.
It is described as the “most significant single deal” for Tesco Media and Insight Platform and is among the first of its kind focused specifically on the burgeoning retail media arena, which covers on-site, off-site, and connected store offerings.
Nick Ashley, Client Development Director at Tesco Media and Insight Platform, commented: “This is a major landmark for us in developing a large-scale strategic partnership with one of the world’s leading networks, representing so many exciting brands.
“Through the arrangements, GroupM will benefit in numerous key areas in retail media across data, insights, and strategic planning, which will enable its clients to truly harness the power of retail media – in all its forms – for measurable commercial advantage. It’s a further example of how Tesco Media and Insight Platform is enabling agencies and their brands to deliver ever more exciting and commercially effective campaigns.”
The deal will also see the establishment of an in-store screen partnership – an agency first – as well as early access for GroupM to innovations within the Tesco Platform and a direct feedback loop into the product ad propositions team to help “shape future offerings”.
The partnership is said to create a framework for more defined and strategic working, aimed at driving “differentiation and exclusivity, as well as greater industry influence across six key pillars: commercial, data, first mover, technical, education and publicity”.
GroupM’s teams will have access to Tesco Media and Insight Platform’s Insights module via dunnhumby’s Sphere self-serve platform, while both parties will explore possibilities to “improve implementational planning with refined bespoke audiences”.
Luke Bozeat, Chief Operating Officer at GroupM UK, added: “We have worked successfully with Tesco Media and Insight Platform for several years and are delighted to take this a major step further through committing to a long-term strategic partnership.
“The unique attributes of the Tesco Media and Insight Platform gives us, and our clients, the opportunity to truly explore the full gamut of opportunities offered by retail media and puts us at the forefront of initiatives to drive further innovation in this area. We look forward to a long and mutually successful collaboration.”
NAM Implications:
- Tesco patently taking RM very seriously…
- …complete RM ‘1-stop shop’…
- …with all the bells and whistles.
- (And hopefully someone in your organisation managing the gradual withdrawal from traditional media?) .
- Are you keeping pace?
