Yahoo! Inc and Sainsbury, the third largest supermarket brand in the UK, have signed a deal in which Yahoo will draw customer data from Nectar loyalty card scheme of Sainsbury in order to offer online advertisers the opportunity to target consumers according to the purchases they have made using their Nectar card.
The new scheme, called Customer Connect, will see the companies combining their databases for those Sainsbury shoppers who have chosen to be included in the scheme.
Later, the spending trends of each of these customers will be linked to their Yahoo IDs, allowing Yahoo to sell consumer specific ads.
According to a report in the Financial Times, Sainsbury has 16.8 million Nectar card holders across UK, out of which 20,000 have agreed to take part in the Customer Connect scheme.
David Buckingham, commercial director at Nectar's insight and communication division, commenting on the opportunities presented by the Customer Connect scheme, said in statement that “It allows FMCG brands to serve up highly targeted adverts online to an extremely relevant audience. We can prove to them what the effect of the advertising was.”
Yahoo will look to establish its base in the UK online advertisement market with the help of the Customer Connect scheme, which is already showing good results in the US.
Obvious question is whether Google will be partnering with Tesco for Clubcard. Then, anything that has the words "targeted" and "advertising" linked together is bound to attract even more scrutiny from the authorities and concerned customers.
(International Supermarket News)