Amazon added a new metric to the Campaign Manager called “New-to-Brand” (NTB). It tells you whether the sales from your advertising came from your existing customer base or those who are, well, “new to your brand.”
Here’s how Amazon describes the New-to-Brand metric on their blog:
“New-to-brand metrics determine whether an ad-attributed purchase was made by an existing customer or one buying a brand’s product on Amazon for the first time over the prior year.”
This metric can be measured in 4 ways:
- New-to-Brand Orders
- % of Orders New-to-Brand
- New-to-Brand Sales
- % of Sales New-to-Brand
Note: NTB is only available for Sponsored Brand ads (formerly called Headline Search ads), which means you have to be both brand registered and running SB ads in order to view this metric.
How do I use New-to-Brand metrics?
We came up with three ways in which NTB metrics can help you develop your campaign strategy:
- Measuring reach/expansion
- Evaluating competitor targeting campaigns
- Analyzing customer loyalty & branding strength
Measuring Reach and Expansion
Everybody knows that if you want to grow your business, you have to grow your customer base. Acquiring new customers can be costly, but the life-time-value of a customer may be worth it. New-to-Brand metrics help you estimate customer acquisition costs so you can make informed decisions about your campaign strategy.
For example, if you’re selling a consumable product like shampoo, you may be willing to run your campaigns at a high ACOS, provided that the majority of your purchases are NTB.
Competitor Targeting
It feels good to steal customers from your competition, doesn’t it? If you’re targeting a competitor’s brand, you’ll be able to evaluate the success of your keywords with NTB metrics.
- If your NTB % is high, this means your ads are working and you’ve successfully taken some market share away from your competitors!
- If your NTB % is low, that means you’ve retained (or even regained) customers who started looking at the competition.
Customer Loyalty & Brand Strength
Some customers aren’t aware of your entire catalog. For example, someone who loves your hair products may not realize you also sell skin products. When they end up searching for “body lotion” and find your ad in the search results, like a loyal companion they stay by your side!
A low NTB % can also be an indicator of the strength of your brand awareness. Amazon shoppers recognize your brand and trust the quality of your products.
The Bottom Line
New-to-Brand metrics help you estimate the cost of acquiring new customers on Amazon. You can use these metrics to strategize your ACOS and reach goals for your PPC campaigns.
What do you think, are New-to-Brand metrics valuable to your campaigns? How do you use them? Let us know in the comments below!