CVS introduced its own media network dedicated to marketing consumer packaged goods (CPG). The CVS Media Exchange gives CPG brands an opportunity to reach consumers online and offline through website banners, in-store displays, and digital videos. The ads also extend to social media, which is ranked as the most effective channel for reaching consumers according to a Gartner report on the topic, and could help CPG brands connect with shoppers anywhere in the country. Through the network, brand marketers could reach consumers even when they are not shopping and stay top of mind with them once in-store. The omni-channel marketing opportunity also helps brands track the impact of their campaigns through CVS’s digital measurement system, which records ad impressions, sales growth, and increases in new customers.
The CVS Media Exchange could help CVS connect with new and old brands at a time when digital ads reign supreme. As online orders increase during the Coronavirus pandemic—including for CVS, which partnered with DoorDash for virtual delivery—an additional means of advertising could draw in more customers. With 76% of American consumers living within five miles of a CVS location, the new media network could prompt consumers to take a short trip to pick up items they see in the ads. The in-house advertising network could also help CVS stay competitive in the retail market. Target, Walmart, and Amazon all house their own media businesses, so it makes sense that CVS would form its own network in an attempt to carve out a slice of the digital ad industry. A surge in demand for CPG goods during the pandemic could mean business for CVS, both online and offline..
Through its new network, CVS could promote brands it carries to engage consumers virtually anywhere. As online retail sales continue to rise, the CVS Media Exchange could help counter the trend and bring more consumers in-store, giving CVS a chance to elevate its brick-and-mortar offerings while expanding its digital presence.