Key Takeaways:Ulta’s ad spend surged 36% YoY; Sephora cut 70%.Ulta leads in innovation and visibility; Sephora in prestige and trust.Growth now hinges on ecosystem scalability, not sales volume.As the beauty retail landscape becomes increasingly fragmented, two giants are setting the pace in distinctly different ways. Ulta Beauty and Sephora both reported strong brand engagement in Q3 2025, yet their strategies reveal a widening gap in how each defines success.According to new data from Navigo, Ulta Beauty surged ahead with a 36% year-over-year (YoY) increase in advertising activity, doubling down on accessibility, marketplace expansion, and performance-driven visibility. Meanwhile, Sephora scaled back its paid investment by 70%, leaning instead on brand equity, organic traction, and prestige storytelling. Together, their contrasting playbooks illuminate the evolving economics of modern beauty retail, where growth is no longer just about who sells more but who builds the smarter, more scalable ecosystem.According to Navigo data, Ulta Beauty's SKU visibility grew 14% YoY, underscoring its aggressive expansion across categories, while Sephora’s declined 11%, reflecting a more selective and curated retail approach.Ulta Beauty and Sephora took divergent paths on advertising strategy in Q3 2025. Ulta Beauty increased its advertising activity by 36% YoY, signaling a continued commitment to visibility and inclusivity across its brand portfolio. Advertising on the platform has become notably more democratized, with the top 10 brands now accounting for just 21% of total spend, a 7-point drop from the previous quarter.