Ulta Beauty Partners with Rokt Ahead of Holiday Season to Expand Its Retail Media Network and Elevate the Guest Experience

Rhea-AI Summary

Ulta Beauty (NASDAQ: ULTA) has partnered with Rokt to expand its retail media network, UB Media, ahead of the 2024 holiday season. The collaboration will enable Ulta Beauty to incorporate non-endemic advertising for the first time, allowing brands not sold on Ulta's platform to present targeted offers during the Transaction Moment™.

Through Rokt's technology, Ulta Beauty gains complete control over customer experience and message frequency while unlocking new revenue streams. The partnership aims to boost app downloads, beauty services, and reward program sign-ups, leveraging Ulta's base of nearly 44 million loyalty members. Non-endemic brand partners will include companies like Hulu, PayPal, and DoorDash.

Positive

• New revenue stream through non-endemic advertising
• Access to Rokt's network of 4.6 billion transactions in 2024
• Potential for increased app downloads and reward program sign-ups
• Enhanced monetization of existing 44 million loyalty member base

Negative

• None.

Insights

Market Research Analyst

This partnership with Rokt represents a strategic expansion of Ulta Beauty's retail media network, UB Media, into non-endemic advertising. The move is well-timed ahead of the important holiday season and leverages Ulta's impressive 44 million loyalty program members. By integrating Rokt's AI-powered technology, Ulta can now monetize its post-purchase moments with ads from non-beauty brands like Hulu and PayPal, creating a new revenue stream without compromising the customer experience.

The retail media network market is experiencing rapid growth, with brands increasingly seeking first-party data access through retailers. This partnership positions Ulta to capture a larger share of digital advertising budgets, particularly from non-beauty advertisers looking to reach its valuable customer base. The ability to control ad content and frequency while maintaining personalization should help maintain customer satisfaction while driving incremental revenue.

Partnership Enables UB Media to Add Non-Endemic Ads to Its Ecosystem for the First Time

NEW YORK, Oct. 24, 2024 /PRNewswire/ -- Rokt, the leading ecommerce company using machine learning and AI to make the shopping experience more relevant to each customer, today announced it has partnered with Ulta Beauty, Inc. (NASDAQ: ULTA) to expand the beauty company's retail media network and elevate the guest experience ahead of the 2024 holiday season. Under the partnership, UB Media will add non-endemic ads to its advertising ecosystem for the first time, enabling brands whose products and services are not sold online by Ulta Beauty itself to present highly relevant offers and messages to the company's guests in the Transaction Moment™. The partnership will allow Ulta Beauty to unlock new revenue streams while deepening its relationships with guests and marks a significant expansion into the beauty sector for Rokt.

"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, SVP of Marketing and Media at Ulta Beauty. "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."

By partnering with Rokt to add non-endemic messages to its existing advertising channels, Ulta Beauty can broaden its advertiser mix, diversify its revenue streams and enhance its guest experience. Rokt's technology gives Ulta Beauty complete control of the customer experience, including the ability to decide the types and frequency of offers that will be presented to customers. Ulta Beauty will be able to drive increases in app downloads, beauty services and reward program sign-ups through the new partnership while also tapping incremental value by rewarding guests with tailored messages from non-endemic brand partners such as Hulu, PayPal, DoorDash and hundreds of others. 

"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, Vice President 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."

Rokt's trusted, scaled, ecommerce network will power more than 4.6 billion transactions in 2024 across hundreds of leading ecommerce businesses, allowing merchants to create a seamless customer experience while also controlling the types of offers eligible to be displayed to their customers.

About Rokt

Rokt is the global leader in ecommerce, enabling companies to unlock value by making each transaction relevant at the moment that matters most, when customers are buying. Rokt's AI-powered relevance platform, built over the last 12 years, and scaled network power billions of transactions annually for the world's leading companies, including Live Nation, Macy's, AMC Theatres, PayPal, Uber, Hulu, Staples, Albertsons, HelloFresh and more. Headquartered in New York City, the company operates in 15 countries across North America, Europe and the Asia-Pacific region. To learn more, visit Rokt.com.

About Ulta Beauty

At Ulta Beauty (NASDAQ: ULTA), the possibilities are beautiful. Ulta Beauty is the largest specialty U.S. beauty retailer and the premier beauty destination for cosmetics, fragrance, skin care products, hair care products and salon services. In 1990, the Company reinvented the beauty retail experience by offering a new way to shop for beauty – bringing together All Things Beauty, All in One Place®. Today, Ulta Beauty operates 1,411 retail stores across 50 states and also distributes its products through its website, which includes a collection of tips, tutorials, and social content. For more information, visit www.ulta.com.

Media Contact
Sarah Fisher, VP Communications
sarah.fisher@rokt.com

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SOURCE ROKT Pte. Ltd.

FAQ

What is Ulta Beauty's (ULTA) new partnership with Rokt in 2024?

Ulta Beauty has partnered with Rokt to expand its UB Media retail network by adding non-endemic advertising, allowing brands not sold on Ulta's platform to present targeted offers during transactions.

How will the Rokt partnership affect Ulta Beauty's (ULTA) revenue in 2024?

The partnership will create new revenue streams for Ulta Beauty by enabling non-endemic advertising and leveraging its 44 million loyalty member base through targeted messaging and offers.

What new features will Ulta Beauty (ULTA) offer through the Rokt partnership?

Through the Rokt partnership, Ulta Beauty will offer personalized non-endemic advertising, enhanced app downloads, beauty services promotions, and reward program sign-ups with partners like Hulu, PayPal, and DoorDash.