In a first for the UK, groceries retailer Tesco has confirmed that it will be using data from its ‘Clubcard’ loyalty scheme to target ads to users of its new online video service ‘Clubcard TV’ more effectively.
The new service, which launches today for Tesco’s 16mn Clubcard customers, offers hundreds of titles, including movies ‘The Assassination of Jesse James’ and ‘The Shawshank Redemption’, and popular TV shows such as ‘The Only Way is Essex’, ‘Doc Martin’ and ‘The Real Hustle’.
It operates on an ad-funded model, with adverts displayed before and during playback, and there are plans to extend the service to a range of connected devices including games consoles, Smart TVs, Blu-ray players and set-top boxes.
Once Clubcard members have entered their 16-digit number and a few personal details, they will be sent targeted ads from a range of partners, which so far include Kellogg’s, J&J, Colgate and Danone.
“The reason we can offer great programming for free is because customers will see relevant advertising before and during the movie or TV show they are watching,” said Michael Comish, CEO of Tesco Digital Entertainment. “We’ll use Clubcard data to tell us what might be relevant for our customers and therefore help us deliver a more personalised service.”
Writing on the Tesco blog, Scott Deutrom, MD of Clubcard TV, added: “By using Clubcard, we can look at what customers buy from us, what things they like, and then make an effort to target adverts that are more relevant to them.
“Better still, we can target adverts based on what our customers bought yesterday, we can show that we are listening to our customers in ‘real’ time.”
Deutrom adds that if customers wish to watch the latest releases then they can use the ‘blinbkbox’ service launched by Michael Comish in 2008 and acquired by Tesco in 2011.
Tesco revamped its lineup of digital entertainment services earlier this week, and now offers services spanning video, music and ebooks – more details here.