Ulta Beauty Launches Non-Endemic Ads
Ulta Beauty is broadening its retailer media network, UB Media, to include non-endemic ads for the first time. The move comes as the retailer focuses on enhancing personalization and driving digital engagement (see the "Related News" section below).
The beauty giant partnered with Rokt, an e-commerce company that uses machine learning and artificial intelligence to make transactions more relevant, to launch this offering ahead of the 2024 holiday season.
Under the partnership, UB Media will enable brands whose products and services are not sold on Ulta’s website — such as Hulu, PayPal and DoorDash — to advertise relevant offers and messages in the "transaction moment," which Rokt describes as the crucial stage in a customer’s journey when they’re most likely to buy.
"We're committed to providing a personalized, elevated end-to-end experience for our guests, 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 guests," Brandi Pitts, senior vice president of marketing and media at Ulta Beauty, said in a media release.
Rokt's technology also gives Ulta the ability to decide the types and frequency of offers that will be presented to customers. Rokt says the partnership can help Ulta tap incremental value by rewarding guests with tailored, AI-driven messages from non-endemic brand partners.
“In some cases, Rokt’s AI will determine not to show an ad at all,” Laura Cosgrove, vice president of retail partnerships at Rokt, recently told Glossy. “Instead, it may drive the adoption of strategic first-party initiatives, such as installing the Ulta app, booking a beauty service or signing up for Ulta Beauty Rewards. The technology [weighs] the value driven by these initiatives against ad revenue, based on the customer’s likelihood to take them up.”
While this move expands and diversifies Ulta's retail media mix, it also marks a significant expansion into the beauty sector for Rokt, per the release.
"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," Cosgrove said in the release. "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."
Back in June, Albertsons Cos.’ retail media arm joined forces with Rokt to launch a similar opportunity for non-endemic brands across 11 of its banners’ e-commerce assets. Additionally, Albertsons Media Collective also tapped Rokt Ads to serve its brand messages across the solution provider’s network of e-commerce merchants, including Ticketmaster, Uber, AMC Theatres, Kohl's and Grubhub.
Related News
Earlier this month, Ulta outlined its long-term financial targets and strategic priorities to drive growth. Some of its key plans include:
- Deepen guest engagement through community building and advanced personalization.
- Drive loyalty program growth to 50 million members by 2028 by reaching new segments of beauty enthusiasts.
- Elevate digital engagement by fueling discovery through continued innovation and streamlining the shopping experience.
- Heighten omnichannel satisfaction, meeting guests where they are with a robust suite of offerings and increased speed to guests.
- Accelerate new store openings, targeting 1,800-plus stores over the long term.
- Establish a leadership position in wellness with an expanded assortment and elevated experience.
- Drive product newness through a differentiated portfolio of exclusive, emerging and established brands, including Ulta Beauty Collection.
- Enhance the immersive in-store experience by investing in key differentiators including its store associates and stylists, distinct service offerings and signature events.