Retail media is evolving fast.
In this episode of The Six Sells Podcast, I spoke with Nick Ashley from the Tesco Media & Insights Platform, and Mike Follett from Lumen Research about the impact of in-store digital advertising and the research behind its effectiveness.
Tesco’s Retail Media Network:
Tesco's retail media network, Tesco Media Insight Platform, includes three key areas:
On-site – Advertising on Tesco’s website and app, including sponsored product listings, display ads, and the newly introduced video ads.
Off-site – Tesco partners with platforms like ITV, Sky, The Trade Desk, and Meta to target specific audience segments using its first-party data.
Connected store – In-store digital advertising, including 4,800 digital screens across Tesco stores and 500 JCDecaux screens at store entrances. With 85% of Tesco’s sales still happening in-store, this is a huge opportunity for brands.
Tesco has invested heavily in digitising its stores. The goal wasn’t just advertising revenue—it was about improving the shopping experience, enhancing store aesthetics, and driving category growth.
The Impact of In-Store Digital Advertising:
Tesco and Lumen Research conducted a study to measure how effective digital in-store advertising is. The findings showed:
Sales impact – In-store digital ads increase sales of the advertised product by 7% and the broader brand portfolio by 4%.
Brand impact – Exposure to digital screens increased purchase intent by 27% and brand advocacy by 13%.
Brand recall – Seeing ads on both JCDecaux entrance screens and Tesco’s in-store screens led to a 3x higher brand recall than single-screen exposure.
Attention levels – Traditional outdoor billboards assume 5–8 seconds of viewable time as drivers pass by. In Tesco stores, shoppers engage with screens for 20–30 seconds, increasing attention and engagement.
The Multiplier Effect:
One of the most interesting findings was the multiplier effect. When shoppers see multiple exposures of an ad - whether outside the store, inside on digital screens, or both - the impact is greater than the sum of individual exposures. Seeing two ads doesn’t just double recall - it increases it significantly beyond expectations.
Tesco's store layouts also help with frequency, ensuring customers see ads at multiple points during their journey, which strengthens memory and brand recognition. The study found that frequency builds attention over time, making a brand more memorable.
Retail Media as a Long-Term Brand Strategy:
Retail media is often seen as a performance-driven channel, focused on immediate sales. However, Tesco is positioning it as a full-funnel marketing tool. With 23 million Clubcard users, Tesco can provide brands with valuable data to predict and prevent customer churn.
Rather than treating retail media as a separate line on a plan, Tesco believes it should act as “the glue” across a brand’s marketing strategy, blending online, outdoor, and in-store advertising for a seamless omni-channel campaign.
Final Thoughts:
I found it really interesting to think about posters at the end of a shopping aisle as both direct response (driving immediate purchase) but also branding (building awareness for future shopping trips).
I’d love to explore this idea further on the podcast - if you’d like to be a guest to discuss that or any other interesting research please email hello@sixsells.co.uk.
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