How CVS and Walgreens are becoming pharma’s new big advertising strategy
Pharma marketers are spending more money and time targeting retail pharmacies — and their video displays, mobile phone alerts and even refrigerator doors — as the number of consumers receiving primary care services in retail stores rises.
More than half (58%) of Americans are likely to go to pharmacies as a first step for non-emergency healthcare, according to a Wolters Kluwer survey in May. When it comes to vaccines, 62% of adults said they would go to a pharmacy, although 54% still prefer physician office visits for their children’s shots.
Big retail pharmacies are ready to serve them.
Major retail chains have long operated clinics inside their stores, going back to the first MinuteClinic opening inside a CVS in 2000. (The retail pharmacy chain later acquired the provider in 2006.) Over the last decade, as Big Tech moved further into clinical care, retailers like CVS and Walgreens upped their own investment in the area. However, it was the Covid-19 pandemic that accelerated the growth of clinical services in retail stores, driven in part by vaccinations.
More than 90% of Covid vaccines were delivered at pharmacies, according to an IQVIA report analyzing data through last year. However, shingles vaccines also saw “a majority of administration” from 2018 to 2022, along with up to a 40% increase in flu vaccinations at pharmacies between the 2018/2019 and 2020/2021 flu seasons.
Pharma marketers are following along, increasingly crafting strategies that target consumers and pharmacists alike, experts said.
Elizabeth Dexter“Primary care is no longer happening exclusively in a traditional doctor’s office,” said Elizabeth Dexter, VP of point of care at Publicis Health Media. “We’re seeing this as an enormous evolution to fit the changing behaviors of Americans. We’re really excited about this and see a great opportunity for many of our brands in the space.”
PHM added a dedicated point of care team at PHM several years ago not only for traditional physician’s offices and hospitals point of care, but also emerging locations such as retail pharmacies and telehealth.
GSK has done in-store pharmacy advertising in the past, but its newest marketing strategy for respiratory syncytial virus vaccine Arexvy includes a concerted retail pharmacy effort and outreach to pharmacists.
“Our hope is that consumers will see our information at their local pharmacy and have that conversation. We also plan to support pharmacists with resources and patient education to help facilitate discussions and ultimately vaccinations,” a GSK spokesperson said in an email.
Sanofi has “seen, year-over-year, a greater shift from medical to retail” and also is considering that change in its marketing plans, said Dominika Kovacs, Sanofi’s head of adult vaccines in the US.
Dominika KovacsFor its current flu vaccine campaign, which features a wolf in sheep’s clothing to illustrate the lurking danger of flu, that imagery will be used inside retail pharmacies to “nudge” people to consider Sanofi flu vaccines, she said. Its branded TV ads for Fluzone and Flublok, which are currently running, encourage people to “Ask your pharmacist or doctor” about its vaccines. The final screen of the commercial lists the names of its pharmacy partners, including CVS, Kroger, Rite Aid, Walgreens and Walmart.
But it’s not just vaccine makers that should be thinking about retail pharmacy as a marketing venue.
Dexter is bullish on the opportunity for most prescription drugs, saying, “I can honestly make a case for nearly any Rx product on the value of being in pharmacy — even if it’s a specialty product.”
She gave an example of an unnamed biologic psoriasis medicine that is only available at specialty pharmacies, noting that people with psoriasis who are not on therapy are likely already spending time in retail pharmacies looking for OTC skincare products or picking up prescription generic drugs. If they see an ad for a biologic while picking up those items, it could motivate them to talk to their doctor about other treatment options.
The opportunities aren’t limited only to physical stores. VMLY&R Health, which worked with Pfizer on its Covid-19 vaccine campaigns, sees social media as another way to influence pharmacists as well, said Brian Owens, SVP of commerce strategy for VMLY&R Commerce.
“Because of the elevated role of the pharmacist in healthcare, now that they’re more of a primary care provider, retail pharmacy has created opportunities,” he said. “And because of the social media phenomenon and influencer marketing, retailers are adapting and transforming or monetizing spaces, is probably the best way to describe it…[There are] more digital screens around the pharmacy, more QR codes in store. And if you go to a CVS or Target, you might even see pictures of influencers [on the] shelf.”
Meanwhile, staple in-store pharma ad formats like shelf talkers and end cap displays are evolving, too. Video screen displays, clickable QR codes and digital advertising that allow consumers to opt-in from their mobile phones are some of the newer ways pharma companies are trying to reach consumers in retail settings.
Lindell BennettCooler Screens, which transforms the glass on beverage and snack coolers in stores into advertising screens, is now doing work with pharma companies, said chief revenue officer Lindell Bennett.
He joined the company about 18 months ago after 10 years at Amazon, most recently running its consumer packaged goods business.
“Whether it’s within pharmaceuticals or Procter & Gamble or any brand, you name it, a lot of them are talking about how being at the point of retail in a physical store is becoming more and more central to what they do,” he said.
For pharma marketers, though, it’s important to be thoughtful about the types of messages people will accept at retail.
“If you’re going to a pharmacy or primary point of care in the store, you don’t want to feel like you’re being sold to,” he said. “But from an educational standpoint, you do want people to understand what options they have.”
