In this article:
- Increasingly, retailers are making their own media networks in response to privacy and data concerns
- Beauty company Ulta is rolling out an advertising platform called UB Media
- UB Media will give advertisers access to the data of Ulta’s millions of rewards members
Ulta Beauty is launching a new product, but it’s not an eyeshadow palette.
The beauty retailer is kicking off a retail media network called UB Media, which will use the data of the 37 million people who participate in the company’s rewards program, Ultamate Rewards. Brands and advertisers that use the platform will be able to access the data of those customers to better inform their display, video, social media, or influencer campaigns. The platform will also facilitate on-site sponsored product placements on Ulta-owned properties.
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Ulta hopes to “personalize consumer engagement, drive growth, and fuel measurable returns,” according to a press release with UB Media. “No one knows the beauty industry and its audience like Ulta Beauty. Our new offering reinforces our ability to engage guests where, when, and how they want to connect, with hyper-focused advertising efforts in a dynamic ecosystem and further elevates our position as brand partner of choice,” says Brent Rosso, the vice president of the new network.
Brands and advertisers will be able to buy ad space on Ulta’s ecommerce site, app, or in email campaigns. Alternatively, the advertisers can also just use the platform for their campaigns across other channels. UB Media is partnering with adtech companies like Criteo, Epsilon, Google, and Rise Interactive to make the program happen.
Ulta reports that 95% of its total sales during the last fiscal year came from Ultamate Rewards members. For the year ending January 29, 2022, Ulta brought in $8.63 billion in net sales, 40% more than the same period a year before, when people spent less on makeup due to the pandemic.
Beauty competitor Sephora is expected to follow in Ulta’s footsteps by introducing its own network. Other brands, such as CVS, Instacart, and Best Buy, have all ramped up efforts on their retail media networks, in response to increased privacy and personal data restrictions, and ecommerce purchases. Retail spending is predicted to generate $100 billion in ad spend by 2024.
Networks like Ulta allow advertisers to access “closed-loop” data, from consumer information to campaign performance results.