Replacing agencies with algorithms

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Kungsängen, Sweden’s most beloved bed brand, decided to call it quits with their traditional performance agency — and start a machine-human collaboration instead.

Background

With around 50 stores in Sweden alone, Kungsängen is the nation’s biggest bed manufacturer. The brand’s flawless reputation has been cultivated over decades by meticulous attention to detail throughout the entire value chain. In fact, the company literally controls everything, from sourcing the parts to manufacturing and delivering — and even installing — the beds.

With such an aversion to outsourcing, it was quite natural for Kungsängen to be curious about our AI-based solution, which in many ways is simpler than traditional performance marketing. Their dissatisfaction regarding their previous setup was mostly rooted in the fact that clear and actionable strategies seemed to get lost in expensive, endless — and oftentimes fruitless — talks about performance metrics. Simply put, Kungsängen wanted more bang for the buck.

 

Solution

The fact that Kungsängen already had a long-standing strategy in place meant there was lots of stored data. So our first mission was a rigorous analysis of every nook and cranny of their previous work in order to find opportunities where Amanda AI would have the biggest impact.

Our audit revealed the overlooking of demographics. This area is crucial for any performance marketing strategy, but it does come with the time-consuming and cumbersome labor of updating the targets manually — a situation in which Amanda AI thrives. With our algorithms primed to test, evaluate, and adapt to Kungsängen’s target audiences at a speed beyond human capabilities, we could spend our budget more efficiently and push our ads to those that were actually most receptive to them.


Result

The collaboration with Amanda AI provided several benefits to Kungsängen, especially a sharp increase in conversion on their online store, which naturally trickled down to a better ROAS. And as the nitty gritty of performance marketing and analytics are automated, discussions, both internally and with Amanda AI, can take a more strategic course.

 

Download the case study with Kungsängen here.

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