Govee uses Sponsored Display and Amazon DSP together to build a high-end smart home brand

Govee, founded in early 2017, is a high-tech enterprise specializing in AI R&D and intelligent hardware. In 2018, Govee started selling on Amazon in the US, focusing on the smart home category, and expanded its presence to Canada, the UK, France, Germany, Italy, Spain, New Zealand, Sweden, Japan, Australia, and Singapore within two years.

Advertising background

Govee started advertising with Sponsored Products in 2018, launched Sponsored Brands ads after brand registration in 2019, and then launched its Store as well as started using Sponsored Display and Amazon DSP in 2020. Building a dedicated advertising team in 2020, the company now combines multiple ad solutions to build its brand on Amazon.

Sponsored Display and Amazon DSP help build brand effectively

To help increase brand awareness, Govee links their Sponsored Brands ads to their brand Store, and combines Sponsored Display and Amazon DSP to showcase their brand on and off Amazon. Particularly, Govee believes Sponsored Display and Amazon DSP help them achieve this goal in an effective way.

Advertising goals for brand building

To build a strong brand, Govee set two main objectives for their display ads:

  • Showcase best-selling products to create a brand halo.
  • Link traffic to new products.

The combination of Sponsored Display and Amazon DSP helps increase brand exposure, reach new audiences, remarket to interested audiences, and inspire repeat purchases.

Operational strategy

Govee’s internal team manages Sponsored Display ads with a focus on on-Amazon exposure. The brand uses Amazon DSP, used primarily for display ads off-Amazon, working with their Amazon Advertising account team. Govee chose a midrange smart lighting product for a two-month Sponsored Display test that focused on product targeting. Govee tested targeting by similar product targets, customer ratings, and prices. The brand was then able to optimize campaigns by constantly testing budgets and bids for different groups.

quoteUpSponsored Display can help increase brand exposure and is a must-have for our brand building. With Amazon DSP they both help strengthen brand image and drives traffic, which is a powerful driving force for our business growth.quoteDown
– Lorain, Sales Director, Govee

Data evaluation

To measure success, Govee uses different metrics depending on the advertised products’ product lifecycle. For new products, it’s important to assess conversion rate, so Govee focuses on click-through rate (CTR) and conversions. For medium-term lifecycle products, advertising cost of sale (ACOS) becomes a good indicator for comprehensive assessment of their long-term product growth. Lastly, for mature products metrics such as new-to-brand metrics help assess the product growth potential.

Performance improved in the US with the launch of Sponsored Display and Amazon DSP in 2020

2020 vs 2019

+350%

in traffic

+310%

in orders

+340%

in sales

quoteUpSponsored Display and Amazon DSP can help us get a variety of external channels to display our ads, customize creatives such as images and videos, to better present the brand image and quickly drive traffic during the holidays. Through ads, we can better understand the purchasing trends and adjust our marketing strategies to better engage our customers.quoteDown
– Lorain, Sales Director, Govee