Luxury Skincare
How Multi-Channel Paid Media Powered Tatcha's $500M Exit
10X growth scaling Google and Meta from startup to Unilever acquisition
Sales Growth
Unilever Exit
Partnership
Background
Client & Context
Tatcha is a luxury skincare brand inspired by Japanese beauty rituals, blending traditional ingredients like green tea, rice, and algae with modern science. Their philosophy—"less is more"—focuses on simplicity, purity, and efficacy.
Sum Digital partnered with Tatcha in the early days, before they even had an official office. Starting with Google AdWords, we grew alongside them for five years—expanding to Facebook, testing mobile video, and building the multi-channel acquisition engine that scaled them to a $500M exit to Unilever.
Challenge
The Problem
Tatcha faced three core challenges:
- •Scale beyond Google Search: Google AdWords was working, but they needed to diversify acquisition channels to unlock the next stage of growth
- •Break into competitive luxury market: Premium skincare is crowded with established players—Tatcha needed to carve out distinctive positioning while scaling profitably
- •Build acquisition infrastructure for scale: Rapid growth required systematic testing frameworks and channel expansion that could support 10X revenue increases
Analysis
Our Diagnosis
We identified three strategic opportunities:
Multi-channel was the unlock
Google Search was saturated—the next stage of growth required expanding to Facebook (now Meta) for top-of-funnel awareness and retargeting. This meant building new creative capabilities and testing frameworks from scratch.
Search + social = compounding acquisition engine.
Video creative advantage
Luxury skincare sells through education and aspiration—mobile-optimized video ads let Tatcha tell their ingredient story and showcase product rituals in ways static images couldn't match.
First-mover advantage in premium beauty video.
Embedded partnership model
Starting before they had an office meant we grew as true partners—deeply embedded in their business, moving fast without bureaucracy, and making strategic decisions collaboratively as the brand scaled.
Extension of their team, not external vendor.
Strategy
The Approach
We built a systematic, multi-year expansion strategy—starting with Google Search mastery, layering in Facebook for audience growth, and continuously testing new formats as platforms evolved.
Strategy
- • Establish consistent Google Search baseline
- • Expand to Facebook for top-of-funnel reach
- • Test mobile-optimized video creative
- • Build multi-channel attribution framework
Execution
- • Iterative creative testing across formats
- • Product launch campaign coordination
- • Seasonal promotion optimization
- • Real-time budget allocation across channels
Execution
Key Changes
Expanded from Google to multi-channel
Started with Google AdWords as foundation, then systematically layered in Facebook advertising for top-of-funnel awareness and retargeting—creating a full-funnel acquisition engine that addressed both demand capture and demand creation.
→ Built search + social into compounding growth system
Pioneered mobile video for luxury beauty
Tested mobile-optimized video ads to showcase Tatcha's ingredient story and product rituals—educating customers on the brand's Japanese heritage and "less is more" philosophy in ways that built emotional connection and drove conversions.
→ Early adoption created competitive creative advantage
Operated as embedded growth partner
Partnered with Tatcha from pre-office startup days through $500M exit—functioning as an extension of their marketing team with deep business context, rapid execution capability, and collaborative decision-making at every stage.
→ 5-year partnership through hypergrowth and exit
Outcomes
Results
Sales increased tenfold over 5-year partnership through multi-channel scaling
Acquired by Unilever backed by scalable, profitable acquisition engine
Multi-channel expansion and embedded partnership enabled 10X growth over 5 years—building the acquisition infrastructure that powered a $500M strategic exit. Schedule a consultation to explore how this applies to your brand.
Framework
Why This Worked
Multi-channel compounds
Search captures demand; social creates it—combining both channels creates compounding effects where upper-funnel awareness improves lower-funnel conversion rates and branded search volumes grow organically. Learn more about our approach to multi-channel strategy.
Creative formats unlock new audiences
Mobile video let Tatcha educate prospects on their ingredient story and brand philosophy in ways static ads couldn't—early adoption created competitive advantage in premium beauty category.
Long-term partnership beats vendor relationships
Five years of embedded collaboration created institutional knowledge, trust, and execution speed that agencies rotating in and out can't replicate—critical for navigating hypergrowth and exit preparation.
"Sum Digital is a superb extension of our own internal marketing dept. Super responsive listeners and highly transparent doers, Sum Digital is the only DTC ads agency I recommend to others."
Ready to build your multi-channel engine?
We'll audit your current channels, identify expansion opportunities, and show you how to scale profitably across search, social, and beyond.