Yahoo Inc and Sainsbury have signed a deal in which Yahoo will use customer data from Nectar loyalty card scheme of Sainsbury. Yahoo plans to offer online advertisers the opportunity to target consumers according to the purchases they have made using their Nectar card.

Sainsbury is the third largest supermarket brand in the UK. Both companies have combined their data in a bid to get FMCG brands to spend more online.

"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 UK & Ireland.

Around 20,000 Nectar and Yahoo customers have opted in to act as a sample group for the platform, called Yahoo Consumer Connect. Yahoo Consumer Connect launched in the US around five years ago and has since then it has made its ROI five times.

Six brands are believed to have signed up to take part in Customer Connect. Cadbury is the first FMCG brand to sign up to Yahoo and Nectar's new online advertising service, Yahoo Consumer Connect.