Case Study

Unleashing growth: AMZELL helps Knuffelwuff’s sales soar by 428% with Sponsored Display ads

Dalmatian dog in brown bed

Knuffelwuff has sold a product range of stylish dog beds on Amazon in Germany since 2014, but as the competition heated up, the company identified an opportunity to distinguish their brand and amplify their reach.

In December 2021, they partnered with AMZELL, a Berlin-based advertising partner that specializes in Amazon Ads, and harnessed the power of sponsored ads to enhance visibility and drive growth.

Pawing at customer base pressures

Knuffelwuff, known for premium dog beds, began to feel the pressure of an evolving customer base. Lower-priced competitors were crowding the scene and chipping away at the company’s customer share. And without a Store, Knuffelwuff had a limited capacity to build a distinct, branded shopping experience and display their unique range of products.

To improve visibility and sales potential, Knuffelwuff engaged AMZELL to optimize their campaign strategy. Their primary goals were to establish a scalable campaign setup that could handle the pressures of future expansion and drive advertising sales growth. They also wanted to design a Store and compelling creative assets that they could use to establish a strong brand identity.

quoteUpKnuffelwuff embraces change boldly and possesses a clear understanding of their objectives. The streamlined decision-making processes have allowed us to work with agility and efficiency.quoteDown
— Darja Ristivojevic, senior academy trainer, AMZELL

Deploying a three-phase strategy

AMZELL developed a multifaceted strategy to steer Knuffelwuff toward accelerated growth. First, they evaluated Knuffelwuff’s information from their Sponsored Products ads and applied the insights to expand their Sponsored Brands campaigns, beginning with Sponsored Brands video. By employing an ad type that could showcase up to three products, AMZELL capitalized on more placements, effectively broadening Knuffelwuff’s audience and augmenting traffic. In the second phase, AMZELL launched Knuffelwuff’s Store, creating a dedicated digital space to display the brand’s products and provide a user-friendly shopping experience.

Third, AMZELL implemented a tailored Store concept. This involved designing landing pages within their Store according to customer needs, running targeted campaigns in niches where Knuffelwuff had an advantage, and creating eye-catching visuals. Specifically, AMZELL focused on the high-end leather beds niche, using a carefully selected image of a dalmatian in an elegant setting to draw the target audience.

In the last phase, AMZELL fine-tuned Knuffelwuff’s use of Sponsored Products and Sponsored Display. For Sponsored Products campaigns, AMZELL noted that product clustering needed better separation. To address this issue, they implemented a granular, parent-level setup with a distinct separation of brand traffic. To optimize Sponsored Display, AMZELL expanded Knuffelwuff’s strategy, which retargeted customers who had viewed or engaged with their products but hadn’t made a purchase. The approach focused on the top 20 parent products using category targeting over product attribute targeting and pivoted from Amazon standard identification number—specific targeting for parent products to broader category targeting.

Along the way, Knuffelwuff and AMZELL focused on several key performance indicators to track success, including ad impressions, new-to-brand (NTB) customers, advertising cost of sales (ACOS), ad spend, and purchase rate. AMZELL used the Amazon advertising console to monitor these metrics, providing them with the insights necessary to adjust and optimize the campaign to meet the objectives that they defined.

Fetching powerful results

AMZELL’s three-phase strategy demonstrated notable achievements for Knuffelwuff. One Sponsored Brands campaign targeted a niche customer base within the dog beds category: leather beds. This campaign alone accounted for 19.7% of the total revenue generated by Sponsored Brands, marking a remarkable increase in visibility.1 These efforts culminated in a decrease in ACOS from 50.92% to 13.6% and an increase in conversion rate (CVR) from 1.16% to 2.76%.2

Moreover, the Sponsored Display campaigns successfully attracted new customers, increasing NTB revenue by 105% in December 2021 compared to November 2021.3 The campaigns saw a dramatic sales increase of 448% compared with the previous period, demonstrating the success of their customer acquisition strategy.4 Over the same period, overall revenue growth soared by 428%.5

Finally, the Sponsored Products campaigns maintained an average overall CVR of 2.42% from December 2021 to February 2022.6 The outcome of the three-phase strategy resulted in a CVR surge to 4.77% in March 2022, showcasing an impressive growth of 97%.7 Encouraged by this tangible success, Knuffelwuff anticipates a bright future as they continue their collaboration with the AMZELL team.

quoteUpThrough personal communication, trust is built, and with that trust, my vision for the strategy can be implemented successfully. I appreciate the support and dedication of the team who have helped me achieve my goals. With AMZELL’s assistance, I was able to enhance my Amazon presence and turn my vision into reality.quoteDown
— Torsten Zingsheim, managing director, Knuffelwuff

1-7 Source: AMZELL, DE, 2023.