Retail media is a daunting space for retailers as they keep up with the dual pressures of the pace of growth and relentless evolution.
To rise above the competition, CVS is partnering with social platform Reddit to run pure play digital ad placements.
“Retail media is perfectly positioned to really connect consumers across multiple platforms,” Parbinder Dhariwal, VP and general manager at CMX, CVS’s retail media arm, told Retail Brew.
On Reddit, CVS will concentrate on promoted posts and conversation placements, which organically match user behavior on the platform. These ads will enable brands to generate traffic and sales by naturally joining trusted conversations between users in relevant communities, the company said in an email.
The next phase of retail media, Dhariwal added, involves “co-creation” and “collaboration.” The idea with the partnership is to develop shared platforms, create content within existing platforms, and build audiences together to connect consumers back to the CVS shopping experience.
“You’ve got synergies in terms of content, how consumers are searching for content, and where they look for content, especially around health and wellness,” Dhariwal said. “The forums and the environment that Reddit creates is much more around discoveries. And we see a very unique opportunity here on being inserted into that conversation—more importantly, inserting the brands and advertisers that we’re working with into that [conversation].”
CVS will test the partnership in beta in Q4 by running ads from consumer healthcare brand Haleon, which sells Sensodyne, Advil, and Tums.
For Reddit, it’s an opportunity to convert more users into shoppers on its platform. With shopping ads playing a major role in its ad growth, Reddit’s latest ad revenue jumped 61% to $358.6 million in Q1.
“Reddit is where high-intent shoppers come not just to browse, but to engage in real conversations, especially when it comes to health, wellness, and beauty,” Mike Romoff, chief revenue officer at Reddit, said in a statement. “By collaborating with CMX, we’re connecting that unique intent and authenticity with the scale and physical presence of CVS, creating a seamless path to purchase experience for shoppers.”
Ultimately, Dhariwal said, “this is a bigger conversation on collaboration and co-creation together, because that’s where we see the ball really moving.”
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