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BizReport : Ecommerce archives : February 15, 2010

Advertisers to benefit from Nectar, Yahoo partnership

One of the U.K.'s largest supermarket chains, Sainsbury's, has partnered with Yahoo to enable online advertisers to target consumers according to purchases made using their Nectar loyalty card.

by Helen Leggatt

nectar logo.pngAround 16.8 million Brits own a Sainsbury's Nectar loyalty card, and it is estimated that 23 million people use Yahoo, so the coming together of these two huge databases will greatly enhance online advertisers' ability to target consumers effectively and with less ad waste.

Around 20,000 Nectar and Yahoo customers have opted-in to act as a sample group for the plan, according to the Financial Times, and six brands are involved, one of which is reported to be Cadbury.

Called Consumer Connect, the opt-in plan is very similar to Consumer Direct which Yahoo has been running in the U.S for several years.

So how does the partnership work? In essence, the Nectar and Yahoo databases will be linked in such a way that information on a consumer's Nectar card influences the behavioral ad system Yahoo uses to determine which ads they are presented with online. Also of great value, advertisers will be able to measure the effectiveness of their online campaigns by analyzing subsequent retail sales.

"The implication of today's product launch for FMCG companies is huge. Our customers depend on Yahoo to bring together their world and the world around them, and our advertising clients expect the same," said Mark Rabe, MD and VP of sales, Yahoo U.K. & Ireland.

Tags: behavioral ad targeting, loyalty card, Nectar, Sainsburys, Yahoo

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