CVS Media Exchange Expands On-Site Solutions with Sponsored Brand Ads
CVS Media Exchange (CMX), the drugstore chain’s retailer media network, rolled out sponsored brand ads units this month, giving advertising partners greater control over how the ads appear during key search moments.
CMX's sponsored brand ads are meant to help advertisers get in front of shoppers actively searching in their category with high-visibility placements. A search for "mascara" from a P2PI editor on CVS.com, for example, delivered relevant search results as well as a prominent ad for E.l.f. cosmetics that directed shoppers to a page for the brand to "explore hype-worthy bestsellers" and allowed shoppers to add specific products to their cart directly from the ad unit. (See example below.)
"The E.l.f. ad you came across when searching for 'mascara' is a great example of our sponsored brand offering," Raphaela Walsh, executive director, head of product, CMX, told P2PI. "These ads appear in premium placements throughout the shopping experience on CVS.com and in the CVS Health app, and are keyword-targeted with branded messaging and clickable SKUs."
"Formats are selected dynamically based on the shopper’s context, like search terms and category, and always drive to a relevant SKU. Once clicked, they lead the shopper directly to a product detail page, supporting quick product discovery, informing an in-store or online purchase," she said.
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E.l.f. sponsored brand ad on CVS.com
Sponsored brand ads can also serve as a powerful tool for competitive positioning, Walsh said.
"Brands can use branded keywords to conquest category share and drive visibility," she said. "This is particularly valuable for new product launches or emerging brands entering the market. Established category leaders often use sponsored brand to maintain dominance and stay top-of-mind with shoppers."
Positive Initial Results
Before officially rolling out sponsored brand ads on April 1, CVS tested them with brands across beauty, personal care, and consumer health and wellness categories. To date, CMX has seen exciting performance metrics for sponsored brand campaigns, with return on ad spend trending slightly above $8, Walsh said.
"This shows us that when brands show up early and prominently, it drives tangible performance," said Walsh, who also noted that sponsored brand campaigns are delivering a 2.2% click-through rate.
The launch of sponsored brand ads was influenced by a growing demand from CMX's advertising partners for reaching high-intent or in-category shoppers earlier in the path to purchase journey, and doing so in a way that combines visibility with clear opportunities to drive conversion.
"Our sponsored brand offering was shaped by that demand and builds directly on the strong foundation we've established with our on-site ads — across display and sponsored product," Walsh said.
The sponsored brand ads are also natural extension of what they know about CVS shoppers, Walsh said.
"CVS shoppers use CVS.com and the CVS Health app to check deals and local inventory, and CMX is uniquely positioned to serve relevant, timely messaging to shoppers as they move between online and in-store," she said. "In fact, we know that 52% of CVS customers who engage with CVS.com or in the CVS Pharmacy app make a purchase in-store within 48 hours. This omnichannel behavior reinforces just how important it is to show up at the right moment, especially when shoppers are still in the consideration phase."
Complementary On-Site Offerings
While they serve different, but highly complementary, roles, the retailer has found sponsored product and sponsored brand ads work best when used together, Walsh said.
"Sponsored product is ideal for consumers, primarily in-category shoppers, who are closest to making a purchase decision, allowing partnered brands to convert off-site curiosity into on-site basket building," Walsh explained. "Ads appear across high-impact areas like search grids, category pages and product detail pages, dynamically connecting shoppers with a specific SKU at the point of decision."
Sponsored brand builds on this, Walsh said, "by using the same core SKU-level infrastructure, but delivering it in more visible placements. These premium ad units showcase key brand messaging alongside shoppable SKUs, influencing consumers who are considering a purchase. When combined, these offerings yield impactful results and can drive conversions 6x higher than leveraging sponsored product alone."
Over the last year, CMX has worked to introduced a range of innovations to support today's nonlinear path to purchase. It launched its self-service platform last year as well as its clean room collaboration with Pinterest and LiveRamp, an industry first in the health and wellness RMN space. The RMN is also all in on in-store retail media.
