According to their company spokesperson Erin Pensa, CVS is moving away from print advertising. They are putting less money into their "Sunday Circulars" in order to focus on their Extracare program, which provides an online, more personalized experience for shoppers. This carries significant implications for the newspaper industry, as these circulars were a "primary revenue source" for print-news outlets.
But why is the Extracare program so important? It follows a growing trend in advertising, a trend that personalizes ad experiences for consumers. In this case, it seems CVS wants to focus on their actual customers, not random people who come into contact with the papers. Non-customers would not even know what the Extracare program is. CVS wants to reap the benefits of what they already have, and it's not hard to blame them. It's better to be sure where they're getting their business from.
However, CVS may end up attracting less customers with this move. Since their will be less ads in the newspaper, they have less of a chance of advertising to new people. They will be stuck with much of their current consumer base. In order to alleviate this, they should also focus on advertising away from Extracare. This could include advertising on frequented websites like YouTube, Facebook, etc.
The case not only shows the advertising market could affect other markets like newspaper, but also that the change to digital advertising carries its own benefits and challenges.
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This really shows how print advertising is a dying breed and everyone wants to make everything digital. CVS had a great thing going with their print advertising. I agree that they can end up attracting less customers because of the switch as well. They could be more personalized, which is great. But their reach will decrease dramatically when they take away their print ads from people that are not connected to a digital outlet.
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