Tesco Clubcard’s 20 million members face online advertising assault Business

The channel is also set to launch Tesco Radio, an in-store broadcaster, in April after a temporary trial that featured advertisements for its own-brand products.

Scan-to-shop devices that underpin 50 million transactions will also feature in-store location-based advertising, so they could for example display a cookie mark when a customer is in the aisle confectionery.

Advertising will also be increased in Tesco’s marketing emails, its Real Food recipe websites and digital signage screens inside the retailer’s stores.

Lukasz Olejnik, independent privacy researcher, said Clubcard data is a valuable asset because it provides an accurate breakdown of how consumers are spending their money, enabling ultra-targeted advertising. However, he added that it also has the potential to raise privacy concerns.

Mr Olejnik said: “It is important to understand what will happen to the data. Even if it remains on company premises, it is crucial to understand what and how the data will be shared with the users of the media platform.

“Accuracy of ad targeting and insight will be key: will it distinguish between individuals, or is the aggregate form the preferred approach?”

“It would be unfortunate if this data were shared indefinitely. Depending on the precision sought, the data can only be used if a legitimate basis exists, and in most cases – with knowledge of the customer.”

The publicity push comes from the success of the Clubcard program, the loyalty card of the former Tesco boss, Sir Terry Leahy, 26 years ago.

Shortly after launching a trial, Lord MacLaurin, then president of the grocer, reportedly said: “What scares me is that you know more about my customers after three months than I do after 30 years. . “

Tesco boss Ken Murphy is currently fighting to protect the supermarket’s market share from discounters by closing the price gap with Aldi and Lidl.

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This notice was published: 2021-12-09 10:00:00

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