How Nothing achieved a 64% sales increase and a 95% ROAS improvement on Amazon across 5-european markets

Executive Summary

Nothing is a consumer electronics brand that was founded in 2021 in London. The brand has quickly grown its product range - from earphones to smartphones - and expanded its geographic reach globally. They began selling on Amazon in late 2021 and took on Witailer to help scale their operations outside of the UK.

Thanks to Witailer’s strategy and access to rich real-time API Data managed and automated on Pacvue, Nothing was able to expand its paid Amazon full-funnel campaigns across 5-European markets, including UK, Germany, France, Spain, and Italy.

This immense scale allowed the brand to have an exceptional Q2 2023 resulting in their best quarter on Amazon to date even when compared to “sales events” periods. The brand has achieved a general increase in turnover with still 3 weeks remaining in the quarter.

While this brand is still small and starting from a relatively low base compared to more mature CE brands, the strategy, execution, and continued drive to optimise their performance has been inspiring to see as a technology provider.

Below we outline the challenges, strategy, and results of the Nothing story on Amazon supported by great technology, data, and people of Witailer and Pacvue.

The challenge

As a new brand in the fiercely competitive consumer electronics industry, Nothing faced the challenge of establishing its presence across the buyer journey: from brand awareness to consideration and purchase. The brand aimed to quickly expand across Europe to meet customer demand for their smartphones and earphones. While their smartphone was the top-selling product, Nothing strategically focused its paid media efforts on becoming a household name in the earphone category, aiming to secure a strong position in this highly competitive sub-category.

The strategy

To grow market share, Witailer focused the Nothing budget on several retargeting campaigns in Q1 2023 to maximise sales to customers who had seen or engaged with previous ads. In Q2 the media mix had a reduced budget of 15% and shifted from 20% of spending focused on DSP to focus on Sponsored Products (62.8%), Sponsored Brands (26.6%) and a small amount (10.6%) dedicated to Sponsored Display.

Despite this shift towards bottom-of-funnel conversion, the brand successfully attracted many New-to-Brand customers. Their strategy of nurturing leads through Q4 and Q1, primarily emphasises brand awareness, leading to a tactical shift in Q2 towards conversion and revenue growth. As a result, Q2 became their most successful sales quarter on Amazon to date.

Results

The results below outline the campaign performance of Nothing’s earphone paid media on Amazon UK, DE, FR, IT & SP for the period of 1 April 2023-8 June 2023 (Q2 ’23) compared to 1 January 2023- 30 March 2023:

• +64% sales improvement with a 15% reduction in spending compared to Q1 2023;
• -29% in spend per click while seeing a 33% decrease in CPC compared to Q1 2023;
• 95% ROAS improvement compared to Q1 2023.