CVS has realized that their customer data is a valuable asset that advertisers are willing to pay for, and they look to be making that data monetizable. "CVS purchase history data combined with digital engagements on and off of CVS properties and other interest-based data helps build out the gaps in [advertisers] knowledge(.)" [1] And retailers have the advantage as they can "accurately validate the effectiveness of a campaign by measuring both online and offline sales.”[4]
If this endeavor proves to be a success, it could be reasonable that other large retailers will soon follow. Walmart, Target, and other large retailers likely have years of consumer data of actual purchasing behavior. This data could provide a connection between search intent and purchase behavior that has previously been harder to come by.
It will be interesting to see if consumers will balk at retailers sharing their data with advertisers feeling their every move is being tracked, or if more precisely targeted advertising will be welcomed to help weed out some of the irrelevant messaging.
But given that 75,000 brick-and-mortar stores may be forced to close by 2026 [2] this may be a stream of revenue that retailers can no longer afford not to monetize, regardless of customer's feelings.
It will be interesting given the recent developments with the US governments strike at the tech giants "monopolies" and if any legislation will be enacted to provide more protection for consumer data. "Bills were considered in at least 30 states and Puerto Rico in 2020." [3] This is a clear sign that there is likely to be an impact on companies looking to turn this into a revenue stream.
Source:
[4] https://chainstoreage.com/cvs-takes-amazon-walmart-retail-digital-ad-market
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