Tesco Finds Customers Want Mobile Ads

Banner advertising on cell phones is reaching its target, especially female heads of households, according to the retailer's mobile arm

by Natasha Lomas

Tesco Mobile has embraced mobile advertising after concluding its customers are hungry for ads on their phones.

The mobile virtual network operator has been trialling a WAP advertising portal since May 2007, which Tesco said has displayed strong month-on-month growth, gaining 300,000 unique visitors in December.

Banner advertising served up on the portal delivered a click-through rate to tailored WAP campaign sites of between three and seven per cent, said Tesco. Brands advertising on the portal included Bee Movie, ITV, Nivea and Teletext.

Tesco said the user-base of the portal has a strong segment of female household budget owners with an average age of 36—a demographic it said is particularly valuable for fast-moving consumer goods such as toiletries and cleaning products.

According to a survey commissioned by Tesco, more than half (60 per cent) of portal users are female and the same percentage said they visit the portal at least once a month, while 69 per cent claimed they would click on a relevant advert.

Ashley Schofield, head of customer management at Tesco Mobile, said in a statement: "Our customers are showing a real appetite for more products and services through the mobile internet. Delivering more great experiences and value through our portal is a priority for this year."