Tesco TV Lacks Advertiser Appeal

05 January 2006

The UK's biggest supermarket chain, Tesco, has encountered a rare hiccup in its seemingly unstoppable success.

Advertisers have been less than enthusiastic about buying airtime on the company's instore television channel, imaginatively named Tesco TV, and the future of the enterprise is now in doubt.

The channel was launched in May 2004 with ambitious plans for rollout to 300 of the chain's largest stores. Its aim was to divert revenue from TV advertising and into Tesco's already overflowing coffers. However, Tesco TV's progress has ground to a halt at 100 stores with no plans for further expansion.

Reports suggest advertisers are unhappy about the network and have cited the placement and intrusive nature of screens as problems.

A Tesco spokeswoman admitted the channel was under review, adding: "It's a relatively new product still in development."

Data sourced from Brand Republic (UK); additional content by WARC staff