Blog.
An introduction to digital retail media

In 2023 alone, advertisers in Europe invested over €11K million into retail media¹ – and much of that online. With the continued growth of ecommerce has come the opportunity to engage with millions of customers as they build their digital baskets, giving advertisers the chance to sway decisions at a critical moment. For consumer packaged goods brands in particular, that has led to a growing focus on the digital properties owned by grocery retailers.

Enter “onsite” media. Onsite refers to any media placement that is available on a retailer’s own digital properties, typically their website or mobile app. In that respect, onsite can cover a wide range of advertising opportunities that run from awareness-driving banner ads through to personalised promotions and other targeted content. On the other hand, offsite media relates to digital ads delivered away from a retailer’s properties.

In the context of Tesco Media in Central Europe, “onsite” is one of its key retail media channels. Onsite encompasses a set of retail media products that can be used to engage with customers browsing both the Tesco website, and those using the Clubcard app.

There are three key products that sit beneath the onsite umbrella. Combined, they enable advertisers to highlight their goods to customers in a range of helpful, relevant, and effective ways. Let’s see what those products are, and how they can be used to engage with Tesco’s online customers.

1. Onsite Display Advertising.

   From the homepage to the checkout, Tesco webpage and the Clubcard app offer a wide range of ways in which to reach out to customers. With shoppers looking for inspiration as they browse, Onsite Display Advertising gives brands the ability to capture their attention and highlight the unique qualities of their products.

   • Homepackage Banners - allows brands to communicate along every stage the customer journey across Tesco website, whether on the homepage, in the My Favourites section or in the basket.
   • Taxonomy Category, Aisle & Shelf Headers - these could be used to target specific customer segments or products, enhancing ad relevance and increasing the likelihood of conversion.
   • Search Banner - these banners appear when customers conduct a search on the platform and often promote specific products, deals, or categories related to the search query. They are useful to reach customers while they’re actively engaged in finding products, making them a powerful tool for increasing visibility and conversion rates.
   • Splash Banner - in the Clubcard app this banner displays on the screen for three seconds every time a user launches the app, it means when the session starts. They are served to 25% to 50% of active Clubcard customers.
   • Carousel Banner - an interactive display or ad unit in the Clubcard app that rotates through multiple images or products within a single banner space. This format allows brands to showcase multiple products, promotions, or messages in a single, visually dynamic ad that users can scroll through or that automatically rotates at set intervals. A landing page can be linked to the carousel banner.

2. Newsletters.

   Retailers use newsletters as an important tool for retail media strategies to engage directly with customers and promote products, sales, or brand messages. Newsletters offer a cost-effective and personalised way to maintain regular communication with customers, keeping them informed about new arrivals, special offers, or other relevant content.
   At Tesco there are two different formats based on their content:

   • Standard newsletter- newsletters which include regular information from the retailer.
   • Themed newsletter- newsletters with specific content related to events such as Halloween, Christmas, etc.

3. Sampling service.

   It consists of a sampling service for people who shop online at Tesco. Brands have the opportunity to introduce new products to a large number of Tesco customers.
   Connecting advertisers with millions of shoppers every month, and providing a range of targeted and measurable opportunities, digital is an integral part of Tesco Media. As shopping behaviours continue to evolve, and more shoppers begin to combine online grocery with trips to the store, digital retail media gives brands the ability to create seamless connections with their customers.
   For more information about our digital retail media portfolio visit our landing page.