CMX at 5: Inside Its Mission to Make Every Ad Dollar 'Work Harder'
CVS Media Exchange (CMX) launched five years ago in August out of the need to cut through the noise of generic advertising and deliver personalized, measurable experiences to its CVS Pharmacy and ExtraCare customers, according to Parbinder Dhariwal, CMX's VP, general manager.
"While e-commerce and omnichannel shopping were already on the rise, we saw an opportunity to create a network that would reimagine how advertiser partners reach the outcomes they were seeking while unlocking new value for our customers," Dhariwal told the Path to Purchase Institute.
Since its launch, CMX's team has grown from fewer than 10 to more than 100, executed over 1,300 campaigns and introduced many unique collaborations and initiatives, including being among the first RMNs to align with the Interactive Advertising Bureau’s In-Store Retail Media: Definitions and Measurement Standards, and partnering with Reddit.
"Looking ahead, our next phase of growth will remain focused on scaling with intention through co-creation and collaboration, while staying grounded in our mission to turn every brand engagement into a meaningful experience for shoppers," Dhariwal said. "Central to that mission is continuing to elevate how we drive brand building for our advertiser partners — helping them grow and strengthen shopper loyalty in ways that go beyond transactional outcomes. We want to be the retail media network that brands turn to when they want both immediate results and long-term growth."
We recently chatted with Dhariwal on CMX's retail media journey and where he sees the RMN and retail media space heading.
P2PI: RMNs have definitely evolved from alternative revenue streams for retailers to more integrated business functions. Could you share where CMX sits within the larger CVS Health organization, and if this has changed or evolved over the past few years?
Dhariwal: CMX is deeply embedded within our retail business, CVS Pharmacy, and works closely with merchandising, store operations, publishers and advertiser partners. We describe it as a flywheel environment: the CPG partners we serve, the merchant organizations we support, and CMX all working together with the customer at the center. When those pieces move in sync, every interaction becomes more valuable — for shoppers, for our advertiser partners and for CVS as a whole.
For example, with tentpoles like cold and flu season, merchandising identifies priority products, front-store marketing drives promotions, and CMX activates precision campaigns alongside advertiser partners. That coordination creates a surround-sound effect that makes shopping easier and more relevant for customers while delivering measurable results for brands.
What has evolved over the years is our level of sophistication. We’ve advanced from initial test campaigns to a highly scaled operation that can localize and personalize activations across our footprint. But our mission has remained constant: leveraging the full strength of CVS to help brands connect with customers in ways that are relevant, trusted and precise.
P2PI: How have you seen the retail media landscape mature overall these past five years, and what do you think is next?
Dhariwal: Retail media has matured rapidly, evolving from an emerging channel into a discipline that brands now treat as a core component of their marketing mix. That growth has raised the bar: advertisers expect networks to move beyond reach and deliver proof of outcomes that matter to their business.
Retail media networks have emerged from longstanding CPG and retailer co-op relationships, gaining traction and capturing a greater share of the market by proving they can make every dollar work harder, not simply add more inventory.
The next phase of retail media will be shaped by networks that can deliver campaigns that are relevant, trusted and precise. At CMX, that means continuing to lead with transparency, building solutions that connect digital discovery with in-store decision-making, and leaning into co-creation with our partners. With 90 million addressable loyalty members and visibility across both CMX and the front store, we are uniquely positioned to deliver personalization and attribution at scale — reflecting how consumers actually shop.
As one of the first retail media networks to align with the Interactive Advertising Bureau’s (IAB) in-store measurement standards, we’re also raising the bar on accountability and consistency across the industry. That commitment helps us stand out — giving our advertiser partners confidence in the results we deliver.
P2PI: You mentioned measurement standards. What do CPG brand partners expect now when it comes to measurement and transparency, and what obstacles still need to be overcome as an industry?
Dhariwal: Brands don’t just want to know how many shoppers saw an ad — they want to understand the impact: Did it drive incremental sales? Did it bring in new-to-brand buyers? Did it re-engage lapsed customers? That’s why CMX has leaned into campaign-level insights like iROAS and incrementality, giving advertiser partners a clearer picture of outcomes across channels.
Throughout the industry, there is a massive need to align on transparency and measurement so that brands can trust the reporting from individual retailers and have a deeper understanding of the methodology behind each retail media network. When advertisers can effectively measure results, they can — and will — make the case for growing more in the category.
At CMX, our advantage isn’t just ExtraCare front-store data at scale — it’s the ability to use it with precision, so that advertiser partners can trust the outcomes we deliver. Transparency around measurement and methods is an incredibly important piece of this and something our team at CMX is extremely passionate about.
P2PI: What are some consumer trends you're seeing, and how is CMX adapting its offerings to meet the shopper where they are?
Dhariwal: Omnichannel is now the expectation. Shoppers move fluidly between browsing online and purchasing in-store, and our data shows that more than half of ExtraCare members who engage online or in-app make a purchase in a CVS Pharmacy store within 48 hours. That underscores the need to connect digital discovery with in-store decision-making and design experiences that reflect how consumers are looking to shop with us.
We’re also seeing social discovery continue to rise as consumers turn to trusted communities for product recommendations before they buy. Reddit, where more than half of online product mentions occur, has become a hub for authentic conversations that can help shape everyday purchase decisions — a driving factor behind our recent collaboration with the platform.
Personalization is also reshaping expectations, with shoppers gravitating toward experiences that feel both local and personal. Our role is to create that continuity — delivering relevance and trust through 1-to-1 interactions, from personalized digital offers to contextual in-store media — so shoppers feel supported throughout their path to purchase. Our goal is to redefine what it means to connect with consumers, blending the power of being the nation’s largest retail pharmacy chain with the familiarity of local neighborhood stores.
P2PI: CMX has had a few interesting collaborations, working with Pinterest and Reddit, for example. Can you speak to some of these partnerships and how they align with the RMN's strategic goals and evolution?
Dhariwal: Both collaborations are strong examples of how we’re leaning into co-creation to help move the retail media industry forward. Our clean room collaboration with Pinterest was the first of its kind in the health and wellness category. For the first time, advertiser partners could directly connect Pinterest campaigns to CVS transactions in a privacy-safe environment, with attributed sales reported back through the CMX Performance Dashboard. Early activations have shown strong results, including a 2x lift in ROAS, highlighting how co-creating advanced measurement solutions with partners can unlock greater value for both brands and shoppers.
Our collaboration with Reddit represents another industry first. By combining ExtraCare’s loyalty insights with Reddit’s 100,000-plus active communities, we’ve created a solution that lets brands reach consumers in authentic, conversation-driven spaces while providing closed-loop, SKU-level attribution for the very first time. This collaboration sets a new standard for how retail media can integrate community-driven platforms with measurable business outcomes.
P2PI: What are some up-and-coming retail media tactics you're prioritizing or keeping an eye on?
Dhariwal: We see in-store as an incredible opportunity for continued growth and innovation. Recent research from our team indicates that in-store screens enhance the shopping experience. In fact, 54% of shoppers found them helpful and nearly 20% took action based on what they saw on the screens.
With that in mind, we’ve added nearly 2,000 digital screens in high-traffic areas and updated signage on endcaps to influence shoppers at the point of decision. And these channels continue to deliver impact: a recent beverage campaign drove 61% new-to-brand buyers through in-aisle media. We were also the first health and wellness retail media network to bring in-store programmatic audio ad inventory to advertising partners, enriching the shopping experience for our customers even further.
These innovations are designed to connect online discovery with in-store decision-making. The future is about creating a truly seamless ecosystem where every channel — digital, online and in-store — works harder together to deliver measurable outcomes for partners and better experiences for customers. That’s the future of retail media — and it’s where CMX is leading.
P2PI: What significant challenges must be overcome to move the retail media space forward?
Dhariwal: New retail media networks are entering the market almost daily, which has created a fragmented and highly competitive environment. That fragmentation also makes it harder for advertisers to know where to place their dollars with confidence. Every investment is evaluated closely to ensure it drives maximum return — whether that’s repeat purchases, new-to-brand buyers, or stronger loyalty.
For the industry to move forward, retail media networks must shift from simply monetizing audiences to creating meaningful, consumer-first experiences that deliver real business outcomes. Its place in the marketing mix won’t be secured by expansion alone, but by consistently proving it can deliver on its promises.
Beyond that, unlocking untapped data-driven collaborations that can add more dimension to the shopping journey will serve as a key indicator of industry growth. The shopping journey has completely transformed and retailers need to be able to keep up with that pace. Our recent collaboration with Reddit is a powerful example of this, expanding retail media into a platform where product conversations are already happening at scale.
