Channel 4 latest broadcaster to go big on retail media with Sainsbury’s Nectar tie-up
UK broadcaster Channel 4 has struck a data match deal with Sainsbury’s loyalty provider Nectar just days after ITV inked similar deals with Boots and Tesco – a sure sign that retail media and TV have a complementary future ahead.
The Bake Off broadcaster has tied with Nectar360 for data exchange
Channel 4’s commercial arm 4Sales has tied with Nectar360, which operates the 17 million-strong Nectar loyalty program. The deal enables Nectar’s advertisers to better target and measure addressable campaigns running on Channel 4’s VOD service All 4.
The partnership follows ITV’s retail media data exchange with Boots and Tesco just days before. In the US, Walmart carved out a similar deal with Paramount+, giving its members free access to the streaming service but also integrating its retail media data. The broadcaster/retail media tie-ups are being positioned as privacy-first solutions to cookie deprecation.
4Sales is testing the partnership with PepsiCo brands Walkers Baked and Pepsi Max via the OMD agency, and McCain and L’Oréal through media agencies PHD and Essence.
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At the end of a campaign, Channel 4 and Nectar360 will be able to tell advertisers how many customers purchased the product after seeing it on All4.
Nectar360 has agreed to data match with All4’s 24 million registered users using a secure clean room managed by InfoSum. Interestingly, ITV has also tapped InfoSum for its retail media partnership.
The data match will then be used to create new audience segments based on product categories so that brands can find the right audience who might be more likely to buy their product.
Amir Rasekh, director of Nectar360, said the partnership with Channel 4 plays into its digital media growth plans. He said it will “create value for our customers through highly-targeted relevant advertising, and our brands through creating new ways for them to reach in-market customers for their products.”
The initiative is the first product to emerge out of 4Sales’ commercial innovation team, which was set up in 2020 as part of the broadcaster’s Future4 five-year digital transformation strategy. Channel 4’s long-term ambition is always to have a media partnership like this one running.
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Jonathan Lewis leads the team as head of commercial innovation and partners at Channel 4. He described the Nectar360 deal as a “key pillar” in the Future4 strategy. “By being able to better target viewers, we hope to improve the effectiveness of our advertising partner’s brand campaigns while offering All 4 users a more tailored advertising experience,” he said.