ULTA Beauty

ULTA Beauty is one of the largest beauty retailers in the United States, with 928 retail store locations in 48 states.

The Challenge

ULTA sought to grow its profitability in affiliate marketing and best capitalize on the numerous opportunities within the channel in the most efficient manner.

The Strategy

Affiliate marketing is an efficient and cost-effective way to reach a brand’s target audience, yet retailers often leave a significant amount of money on the table. Recognizing this, Ulta and Rise identified an opportunity to leverage Rise’s unique approach to affiliate marketing and maximize return on investment within the channel.

ULTA was running its affiliate program through a traditional network with variable fees. After a deep analysis, Rise worked with ULTA to develop a plan to switch its program to a flat-rate structure, starting with a test of its largest publisher. Using the Rise Affiliate Network, a proprietary blend of platforms, technology, and relationships, Rise was able to help ULTA increase revenue and return on ad spend, which led the retailer to transition its other affiliates to a flat-rate model as well. In doing so, ULTA was able to save on network fees and reinvest that money back into its digital marketing programs.

The Results

Through this model, ULTA was able to capitalize on efficiency opportunities at the publisher level to ensure that commission rates were optimized toward the top performers.

40%

increase in revenue YoY

22%

increase in ROAS YoY

70%

decrease in network fees YoY

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