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Tesco has put agencies on alert by launching a review of its media planning and buying account.
WPP’s MediaCom is the account holder of Britain’s largest supermarket after winning the IPG Initiative case in 2015.
It is believed to be the first time since then that Tesco has carried out a comprehensive review of its media arrangements.
Tesco confirmed a review was underway but declined to comment.
Country understands that the pitch is not a reflection on the work of MediaCom. The process, which is still in its early stages, would be part of a routine review of agency support.
Tesco spends more than £80m a year on advertising, according to previous Nielsen estimates.
There was no immediate word on which agencies might cast for the account. M/Six and ZenithOptimedia fought for the company against Initiative and MediaCom in 2015.
The supermarket has used Initiative for 20 years and its decision to transfer both its media account to MediaCom and its creative account from Wieden & Kennedy to Bartle Bogle Hegarty in 2015 came at an important time as Tesco had lost market share and suffered from accounting problems.
Since then, Tesco has turned around its operations and launched “Food love stories” as a successful brand platform in 2017.
Tesco, MediaCom and Bartle Bogle Hegarty went on to win a Media Grand Prix for “Culinary Love Stories” at the Cannes Lions in 2018 and the Grand Prix at the IPA Effectiveness Awards in 2020.
More recently, Tesco has stepped up its ambitions as a media owner in the fast-growing retail media sector by selling advertising space on its own platforms, including its website and app.
The retail giant is partnering with its data science company, Dunnhumby, as it wants to help brands and agencies buy ads and better target them using data from the more than 20 million registered households to its loyalty program and its Clubcard application.
Tesco’s media agency review will be a test for WPP after it announced plans to merge MediaCom and sister agency Essence globally from January 2023.
The two agencies are separate in the UK to manage disputes with customers, including Tesco and Sainsbury’s (the latter uses Essence for digital media), and Sky and BT (MediaCom and Essence customers respectively).
Alessandra Bellini, Tesco’s chief customer officer since 2017 and president of the Advertising Association, oversees the brand’s marketing.
