The supermarket giant, which is poised to become the largest non-food retailer in the UK, according to a new report from the research company Verdict, will continue to run the service to promote Tesco-branded goods.
Tesco TV has been beset by problems since it launched in May 2004, with some agencies and advertisers refusing to buy into the service. Tesco originally said it would roll out the network to 300 stores, but halted the planned roll-out at just over 100.
Tesco TV was sold by Tesco's six-sheet contractor, JCDecaux. According to sources in the outdoor industry, JCDecaux has resigned the TV account because it was not producing the revenues it had hoped for. Decaux's six-sheet contract with Tesco is unaffected by the decision.
Tesco has handed responsibility for running Tesco ads on the network to DunnHumby, the database management specialist, which will use information from Tesco's ClubCard scheme to target customers with the retailer's own goods and services.