Dutch consumer electronics company Lenco uses sponsored ads for UK launch

In 2018, Lenco—a Dutch consumer electronics company that creates and distributes products like turntables, radios, and speakers—was preparing to launch on www.amazon.co.uk and needed inspiration. To ensure the launch was a success, Lenco hired Molzi, a UK-based eCommerce specialist agency, to help increase sales and brand awareness for its product line.

We believe that in order to operate in a foreign country, you need local expertise. With Molzi’s knowledge of the region and Amazon specialization, we were confident we could successfully launch in the UK marketplace.– Manfred Krauss, Head of eCommerce, Lenco

Before starting to advertise, Molzi wanted to ensure Lenco’s products were retail ready—in stock, and with updated images and descriptions—to improve the customer experience. Molzi looked at the entire product range, sales history, reviews, stock level, and overall margins. It also optimised the content by updating the titles and images on Lenco’s detail pages to help with conversion when customers navigated to the detail page. Once the products were retail ready, Molzi moved to the next phase: developing a strategy.

Sponsored Products strategy

Molzi started by creating Sponsored Products campaigns to help grow in sales. Sponsored Products campaigns help Amazon customers discover and purchase products that appear in search results and product pages.

Molzi then focused on creating a separate campaign for each Amazon Standard Identification Number (ASIN), which made it easier to target keyword-specific features, like colour and size.

For targeting, Molzi conducted research to identify which categories would most likely lead to conversions. For example, it advertised one of Lenco’s tower Bluetooth speakers and targeted keywords in both the Bluetooth and speaker categories, which are relevant to the product line. Additionally, while branded keywords can have a low advertising cost of sales (ACOS), Molzi focused on driving sales for Lenco’s business by targeting category keywords rather than keywords that feature the Lenco brand name.

Once the campaign launched, Molzi checked performance daily to adjust the bids, budgets, and targeted keywords to ensure Lenco was driving sales at an ACOS of around 20%.

Sponsored Brands strategy

Once the Sponsored Products campaign started delivering results, Molzi the implemented Sponsored Brands campaigns. Sponsored Brands can feature brand logos, custom headlines, and up to three products and help drive brand discovery. Molzi helped drive awareness for Lenco products by targeting its branded and strategic category keywords with higher bids, which helped lower the overall ACOS for the campaigns and drive greater awareness across the consumer electronics category for Lenco’s products.

Similar to the Sponsored Products campaigns, Molzi wanted to ensure the campaign was relevant to the targeted keywords. Since Sponsored Brands requires brands to advertise a collection of items (up to three), Molzi grouped similar products together into the campaigns and targeted relevant keywords. Molzi also optimised the campaigns daily by reviewing product-specific impressions and modifying bids to help drive toward the overall ACOS goal of 20%.

Results

Lenco was able to achieve its goals with Amazon Advertising. It saw sales attributed to advertising increase by 4X in the second half of 2018, compared to the first half of 2018 with a steady ACOS of 17%. Lenco’s Sponsored Brands campaigns also drove over 1.25MM impressions, primarily in Q4.

We used sponsored ads because not only does it help increase overall sales but it can also create brand awareness and product visibility that help drive even more sales. We would recommend sponsored ads to any advertiser.– Manfred Krauss, Head of eCommerce, Lenco