Sydney-based Koala saw 2X sales growth in a year with the help of sponsored ads

Since its establishment, the company spent the initial few years building a successful brand with its own direct-to-consumer online store. While the disruptive brand grew its prominence in Australia (anyone in Sydney seen their OOH ad?), Koala believed the brand could go further and revolutionize the sleep of even more customers in Australia. In 2021, Koala started selling and advertising in the Amazon store to expand online reach.

Koala had a clear goal in mind upon starting to advertise – to maintain a strong return on investment (ROI). With this in mind, Koala started using Sponsored Products, Sponsored Brands, Sponsored Brands video, Sponsored Display and Stores across 50-80% of their products.

“Each serves a specific purpose,” explains Mitchinson. For example, when launching a new product or driving visibility of products with deals, Koala used Sponsored Products.

For Koala, Sponsored Brands and Sponsored Display played a crucial role in driving brand recognition and reaching a broader audience. With Sponsored Brands, Mitchinson said the brand enjoyed the flexibility that these solutions offered in the ad creative, such as the ability to insert their logo. With Sponsored Display, its ability to reach a wider audience in the Amazon store and beyond provided its own advantage.

The brand observed their sponsored ads performance peak, especially during sales events like Australia Prime Big Deal Days in 2023, where they saw 4X in ROAS compared to their weekly goal². Maximizing opportunities, Koala’s Amazon sales in Australia alone, doubled YOY in 2023.¹

Looking into 2024, “our primary focus will be on refining successful campaigns and exploring additional PPC strategies to support continuous growth,” concluded Mitchinson.