Ulta's RMN Glow-Up

Pretty Smart: The Power of AI Ads

AdTech Insights

The story: Ulta Beauty has made significant strides with its retail media network (RMN), UB Media. Since its launch in May 2022, UB Media has amassed 300 brand partners, with brand investment increasing by 35% annually. This year, Ulta partnered with tech company Rokt to further enhance UB Media’s offerings by introducing non-endemic ads. This allows brands like Hulu and PayPal to present relevant offers to Ulta’s 44M loyalty members while they browse. 

Rokt’s AI-powered system aims to create a more curated, shopping-oriented experience.

“In some cases, Rokt’s AI will determine not to show an ad at all, 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.” Laura Cosgrove , VP of Retail Partnerships at Rokt speaking to Digiday .

As RMNs like Ulta’s continue to develop, powerful data-driven insights, supporting detailed measurement and optimization, are increasingly made available to brands. RMNs are projected to reach $166B in ad spend by 2025, and this year, they are expected to account for 20% of all digital media spending, according to EMARKETER . 

The takeaway: Ulta’s approach to its RMN exemplifies how AI-driven, non-endemic advertising can attract diverse brand partners and engage loyalty members. This method emphasizes personalization, allowing brands outside Ulta’s core product categories to reach new audiences while potentially enhancing user experience and loyalty. 

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Extra Industry Insights

Missed the second-ever Retail Media Summit UK? Here are some highlights:

• “Brands are calling out for innovation,” said Jessica Myers , Chief Customer Officer at The Very Group , as she outlined what brands seek when advertising on the retailer’s site: measurement and customer insights. Myers emphasized that retailers need to offer tools that show why brands should invest with them. 
• “In-store media offers dramatically higher value being so close to the point of conversion,” said Chris Riegel , CEO of STRATACACHE , emphasizing that in-store channels differ from digital out of home (DOOH) by focusing on conversion rather than brand awareness. Riegel also noted that in-store media enables predictable insights into shopper behavior, creating opportunities for brands to engage closer to the point of sale -- a unique advantage over platforms like TikTok .
• “Retail media is an untapped powerhouse when it comes to building brands,” said Katie Streeter Hurle , SMG Chief Strategy Officer, citing data from over 15,000 campaigns across 2,000 brands. Hurle also highlighted research that shows in-store experiences boost brand perception up to 5x more than for consumers without retail media exposure. 
• “If you run three channels, you’ll find you get more than four times the sales rise over running just one,” said Jonathan Dunkley , Tesco Retail Media Agency Group Head at dunnhumby . Dunkley reinforced the value of full-funnel campaigns and emphasized Tesco’s focus on building systems for omnichannel attribution and measurement. 
• “Retail media should be one of the very first places that a brand goes as they’re trying to understand performance and engagement,” said Jenny Holleran , Kroger Precision Marketing Group Director at 84.51˚ .

Kevel Catch-Up

PUBLISHED: Kevel x P2PI “Key Takeaways From Retail Media Summit UK” 

Kevel ’s Paul Astbury reflects on key insights the engaging discussions on crucial topics at this year’s Retail Media Summit UK, hosted by SMG and Path to Purchase Institute .

Check out his four key takeaways, including insights on first-party data, in-store digital transformation, measurement, and more. 

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