LAUNCHING IN A NEW COUNTRY USING AMAZON SPONSORED ADS
Lenco Case Study
Launching new products can be daunting, and Lenco needed inspiration. Lenco is a Swiss consumer electronics company that creates and distributes a wide range of innovative products, including turntables, radios, speakers, and more. Lenco hired Molzi to help launch their brand on Amazon.co.uk, building brand awareness in the UK market, and growing sales.
Amazon Retail Readiness
To set Lenco up for success, we wanted to make sure the brand’s products were retail ready. Ensuring there is adequate stock, good pricing, and that product listings have optimised images and descriptions, is the first steps to ensuring that ads get clicks and conversions.
We organised and advised on the entire product inventory, looking at sales history, reviews, stock levels, and the overall margins.
We optimised Lenco’s product page content by updating the titles and images, and created A+ Content for their hero products.
Sponsored Products Strategy
We created an ad strategy that matched the goals for Lenco. Starting with Sponsored Products campaigns, we quickly drove those pivotal initial sales. Sponsored Products help Amazon customers discover and purchase products on Amazon with ads that appear in search results and on product pages. We focused on creating separate campaigns for each ASIN, to be able to optimise keyword sets adequately based on customer search behaviour.
Through keyword research, we quickly identified which categories would most likely lead to conversions. For example, Lenco has entry-level and professional quality turntables which required different sets of keywords to be able to successfully target shoppers looking for products for these different use cases. Additionally, while branded keywords can have a low ACoS, we focused on driving sales for category-level keywords to ensure we were growing incremental business for our client.
We set a target ACoS below 20% to ensure a good mix of brand protection and new product discoverability.
Sponsored Brand Strategy
Once the Sponsored Product campaigns were delivering results, we launched Sponsored Brands campaigns to promote the Lenco brand. Sponsored Brand ads feature a brand logo, a custom headline, and up to three products. These ads appear on search results and help generate recognition for your brand and product portfolio.
We used Sponsored Brands to help drive awareness for Lenco products by targeting brand search terms and certain strategic category keywords with higher bids. While, at first, Sponsored Brand ads can increase the overall ACoS of your campaigns, it allows us to generate brand awareness and drive traffic to the brand’s Store where shoppers can discover the brand’s wider range without disruption from competitors.
Over time, Lenco brand searches increased on the UK marketplace, and the Sponsored Brand campaigns were optimised to improve conversion rates.
In 2018, Lenco campaigns generated over £120K in ad attributed sales with a 17% ACoS – this was with no external marketing to drive new customer acquisition in the UK. Additionally, Lenco’s Sponsored Brands campaigns drove over 1.25m impressions, primarily in Q4, to achieve the awareness goal. As Rick Wagemans said “we use sponsored ads because we think it will increase our sales and create more brand awareness even if the ad does not lead to direct sales”.