Ulta Beauty opens media network to brands it doesn’t sell
Ulta Beauty Inc. is giving a whole new group of advertisers access to its customers.
The beauty giant’s UB Media network, which it launched in May 2022 to offer its brand partners addressable advertising leveraging its Ultamate Rewards loyalty program, is adding non-endemic brands (whose products and services are not sold online by Ulta Beauty) for the first time.
[READ MORE: Ulta rebrands, upgrades rewards program]
The retailer is partnering with AI- and ML-based e-commerce technology provider Rokt to enable non-endemic brands to present relevant, time-sensitive offers and messages to customers.
"We're pleased to partner with Rokt to continue strengthening the power of our UB Media business while enhancing our overall guest experience," said Brandi Pitts, senior VP of marketing and media at Ulta Beauty. "We're committed to providing a personalized, elevated end-to-end experience for our customers, and this partnership will enable Ulta Beauty to build on that capability by delivering messages from premium brands and service providers whose offerings are tailored for each of our online customers."
By partnering with Rokt to add non-endemic messages to its existing advertising channels, Ulta Beauty intends to broaden its advertiser mix, diversify its revenue streams and enhance customer experience.
Leveraging Rokt technology, Ulta Beauty maintains complete control of the customer experience, including the ability to decide the types and frequency of offers that will be presented to shoppers.
Anticipated benefits include increases in app downloads, beauty services and reward program sign-ups, as well as driving incremental value by rewarding customers with tailored messages from non-endemic brand partners such as Hulu, PayPal and DoorDash.
Ulta Beauty recently said it seeks to increase loyalty program growth to 50 million members by 2028 by reaching new segments of beauty shoppers. The company has also piloted in-store digital kiosks that provide seamless product sampling for rewards members as well as serve as dynamic, interactive advertising platforms for UB Media advertisers.
"Ulta Beauty is an industry leader with an impressive customer base of nearly 44 million loyalty program members and we're thrilled to partner with them to expand their UB Media business," said Laura Cosgrove, VP of retail partnerships at Rokt. "Through this partnership, Ulta Beauty will be able to connect even more closely with its online guests by delivering relevant messages from non-endemic advertising partners at the post-purchase moment, making the overall shopping experience more personal, valuable and enjoyable."
Ulta Beauty is the largest U.S. beauty retailer and the premier beauty destination for cosmetics, fragrance, skin care products, hair care products and salon services, operating more than 1,400 retail stores across 50 states and also distributing its products through its website.
