Retail media is a fast-growing revenue stream which is taking up an increasingly larger share of the advertising market, particularly in the US.

The concept behind retail media is that retailers sell inventory across digital channels, social media, and in-store. It’s about targeting specific brands, products, or services that not only fit well with retailer’s target group but also generate additional revenue for the company.

“Let’s say a cosmetic brand launches a new perfume. The retailer has access to their loyalty program, demographic data, and the touchpoints where customers engage. They can then precisely target that group—both online, through social media, and in-store—creating a seamless, integrated experience for both the brand and the retailer. There was a lot of discussion from industry leaders predicting that this will become a huge part of the future of retail,” says Ole Johan Lindøe, Vice President of Digital Commerce at Columbus.

What’s missing today to attract the larger budgets is collaboration between related brands and retailers with the same or overlapping target groups.

As retail media continues to develop, getting this collaboration right will be key to achieving greater success and driving growth.”