Kinetic picked up the business after a four-way pitch and has taken on the account today (1 July). It is understood to be the first time Tesco has directly appointed an outdoor agency.
Tesco spent £9.9 million on outdoor media in the 12 months to the end of September 2012, according to Nielsen.
The main Tesco media planning and buying account has been handled by Rapport’s sister media agency Initiative for over 20 years. It is understood that there was not a pitch for the main media account as part of the recent process.
Last year Tesco split with its long-term creative agency, The Red Brick Road, and awarded its ad account to Wieden & Kennedy following an extended pitch.
A spokeswoman for Tesco said: "Following a competitive four-way pitch process, Tesco has appointed its UK out of home media account to Kinetic Worldwide from 1 July 2013."
In addition to working with WPP's media agencies on their outdoor planning and buying Kinetic has a number of direct appointments including H&M and British Airways, which is currently under review.
Spokesmen for Rapport and Kinetic had not returned a request for comment by the time of publication.