Unlocking Amazon’s New-to-Brand Metric: A Game Changer for Your Business

What is the New-to-Brand Metric on Amazon and How Can Your Amazon Business Benefit From It

In the dynamic world of eCommerce, data is the new oil.

It powers businesses, fuels growth, and propels innovation.

Amazon, a titan in this arena, has introduced a unique metric that could revolutionize your Amazon business – the New-to-Brand (NTB) metric.

Today, we will demystify the NTB metric, explain how it works, and reveal how it can supercharge your Amazon endeavors.

Unlocking Amazon’s New-to-Brand Metric: A Game Changer for Your Business

Understanding the Amazon New-to-Brand Metric

The NTB metric is a unique benchmark on Amazon that helps brands like yours identify and track new customers who make purchases from your brand within a specific timeframe. Acting as a compass, it guides your brand on the path to success by helping you:

  • Focus your resources
  • Allocate your budget wisely
  • Make data-driven decisions

Moreover, it provides insights into the effectiveness of customer acquisition efforts through your future marketing strategies and focusing on those customers who are new to your brand.

Do you know who else knows a lot about customer acquisition insights? Our amazing team of Amazon advertising experts! They’re not only pros when it comes to Amazon advertising, but they can also save you a ton of time and money. So instead of worrying about the nitty-gritty, you can focus on what you do best in your business!

A diagram showing how Amazon advertising reached existing customers and new-to-brand customers

Driving Customer Acquisition and Business Growth with the New-to-Brand Metric

The NTB metric is a superpower for driving customer acquisition and fueling business growth on Amazon. It can help your brand attract new customers by providing valuable insights into its advertising efforts.

Knowing what’s working and what’s not with your ad campaigns is another superpower that the NTB metric provides through its impact-measuring capabilities. You can then optimize your ad campaigns, fine-tune your targeting strategies, and deliver the right messages to the right audience.

READ MORE: This is what happens when you step out of your Amazon Advertising comfort zone

Reaping the Benefits of the Amazon New-to-Brand Metric

Insights for customer acquisition

The new-to-brand metric gives us a peek into how well we’re attracting new customers. It tells us the percentage of customers who are new to us on Amazon. This nifty metric helps us see if our customer acquisition efforts are paying off.

Fine-tune your advertising campaigns

Like a secret weapon for optimizing our Amazon ad campaigns, the NTB metric gives us juicy data and insights that help us make our campaigns even better. We can learn which channels, targeting strategies, and messages resonate with new customers. It’s all about getting more customers and getting the most bang for our buck!

Hitting the bullseye with targeting

Thanks to the NTB metric, we can get inside the heads of our target audience. It helps us understand the characteristics and behaviors of those new-to-brand customers. Armed with this knowledge, we can refine our campaigns to reach similar customer segments and increase our chances of attracting new customers.

A screenshot of Amazon brand metrics showing the metrics new to brand orders and new to brand sales

Measuring your advertising impact

The NTB metric allows us to connect the dots between our advertising campaigns and new customer purchases. It shows us which ads or channels are bringing in those shiny new customers. This way, we can see what’s working and shape our future advertising strategies.

Comparing and conquering performance

The NTB metric lets us compare how different campaigns, channels, or strategies perform regarding new customer acquisition. This nifty comparison helps us figure out what works best and where we should focus our resources. It’s all about being smart and using the most efficient channels first.

Measuring your business’ growth

Tracking the NTB metric over time is like watching your business bloom. It gives you a way to measure how much you’re growing and attracting new customers on Amazon. It’s like a growth chart for your business!

Make data-driven decisions

As your trusted data buddy, the NTB metric gives you insights you can trust when making important decisions. With this data in hand, you can allocate your budget wisely, optimize your campaigns, and shape your overall marketing strategy. It’s all about making informed choices that will lead you to success.

A screenshots of the Amazon brand metrics page showing key metrics such as shopper engagement rate, customer conversion rate, and the %of new to brand customers

Key Components of the Amazon New-to-Brand Metric

The following components help Amazon identify and measure the percentage of brand-new customers coming in:

Customer order history

Amazon takes a peek into customers’ purchase history to see if they’ve bought anything from the same brand in the past year. It helps them figure out if these customers are new to the brand or not.

Brand attribution

The NTB metric gives credit to the brand for the purchase. Amazon looks at things like product listings, branding, and product info to make sure the right brand gets the recognition it deserves.

Time window

The NTB metric focuses on purchases made in the past year. It’s all about finding those new customers who haven’t recently crossed paths with the brand. It’s like a friendly way of saying, “Hey, you’re new here!”

READ MORE: How can you approach seasonality in Amazon PPC?

Purchase behavior

Amazon takes a closer look at how customers behaved during their purchase journey. They consider things like browsing history, search queries, and how engaged customers are with advertising. It helps confirm if they’re truly new-to-brand customers.

An image showing Amazon's brand metrics page which displays total brand shoppers, engaged shopper rate, customer conversion rate, and % sales new to brand

Crunching the numbers

Amazon’s got some fancy algorithms and data magic up its sleeves to calculate the new-to-brand metric accurately. And they don’t keep it to themselves! Advertisers can access the new-to-brand metric data through Amazon’s reporting tools. It’s like having your own personal dashboard to monitor and analyze how your campaigns are doing.

Exclusion of repeat purchases

The NTB metric doesn’t count repeat purchases from existing customers. It’s all about keeping things fresh and making sure only new customers are included. No double-dipping allowed!

Tracking conversions

Amazon keeps tabs on the whole customer journey, from seeing ads to making a purchase. They link those new-to-brand purchases back to specific advertising campaigns or channels. It helps connect the dots and see which ads are doing the trick.

Challenges Faced by Amazon Advertisers When Using the Amazon New-to-Brand Metric

Data Availability and Accuracy

Getting accurate and reliable data for the NTB metric can be a bit tricky. Dealing with complex attribution models and tracking mechanisms can sometimes make it hard to get the right data. If the data is inaccurate or incomplete, it can mess up the NTB metric calculations and give you wonky insights.

Limited Historical Data

If you’re starting out or recently launched a new product or campaign, you might not have much historical data to work with. That can make it tough to accurately assess how well you’re acquiring new customers.

A graphic showing different people purchasing items online

Variability in Customer Behavior

Customers can be a mysterious bunch! They all have their unique buying habits, preferences, and decision-making processes. This means it’s tough to spot clear patterns or trends within the new-to-brand metric. It can be like trying to predict the weather without a crystal ball.

Attribution Complexity

Figuring out how much your advertising efforts contribute to new customer acquisition is like solving a puzzle. With all those touchpoints, different, efficient channels and tactics, and non-advertising factors in the mix, it can be a challenge. Untangling the impact of each campaign on new-to-brand purchases can get a bit tricky, affecting the accuracy of the NTB metric.

PODCAST EPISODE: Amazon Legends Episode 235: How does one truly get to know their Amazon customers?

Limited Visibility into Customer Data

Privacy regulations and platform restrictions sometimes mean advertisers don’t have full access to detailed customer data. This limited visibility makes it harder to understand the bigger picture of new customer acquisition and get actionable insights from the NTB metric.

Benchmarking and Industry Standards

Since the NTB metric is specific to Amazon, it can be tough to compare your performance against industry standards or your competitors. It’s like trying to figure out what’s “good” or “average” without a clear benchmark. It can make it harder to assess how you’re doing and set meaningful goals.

A screenshot of the Amazon brand metrics page showing the Awareness, Consideration, and Purchased metrics of the conversion funnel

External Factors

Things like seasons, market trends, what your competitors are up to, and the overall economic conditions can sway the new-to-brand metric.

Common Misconceptions About the Amazon New-to-Brand Metric

The NTB Metric equals overall customer acquisition

The NTB metric isn’t everything. One big misunderstanding is thinking that this metric tells you everything about customer acquisition. But hey, it’s focused on measuring new-to-brand purchases within a specific timeframe. It doesn’t give you the full picture of your entire customer base or overall acquisition efforts.

The NTB Metric is a standalone indicator of success

Some advertisers may mistakenly view the new-to-brand metric as the sole indicator of advertising campaign success on Amazon. While the NTB metric provides valuable insights into new customer acquisition, it should be considered alongside other metrics such as sales volume, return on ad spend (ROAS), and customer lifetime value (CLV) to have a comprehensive understanding of campaign performance.

The NTB Metric implies brand loyalty

Another misconception is that customers who make new-to-brand purchases are automatically loyal to the brand. However, the NTB metric only identifies customers who haven’t made a purchase from the same brand within the past 12 months, and it does not guarantee long-term brand loyalty or repeat purchases from existing customers.

A screenshot of Amazon's brand metrics product targeting page showing business growth through sales spikes

The NTB metric reflects overall business growth

Some advertisers may incorrectly assume that an increase in the NTB metric directly correlates with overall business growth. While a higher NTB metric indicates successful new customer acquisition, other factors such as customer retention, repeat purchases, and market dynamics also contribute to sustainable business growth.

The NTB metric is accurate across attribution models

The NTB metric isn’t necessarily consistent across various attribution models. However, different attribution models may yield different results, impacting the accuracy and interpretation of the NTB metric. You should be aware of the specific attribution model used in calculating this metric and understand its limitations.

The NTB metric is a one-size-fits-all benchmark

Some also mistakenly consider a specific NTB metric threshold as a universal benchmark for success. However, the benchmark for this metric can vary based on industry, product category, competition, and advertising strategies. Instead, focus on tracking their own historical NTB metric trends and setting realistic goals based on their specific context and campaign goals.

Strategies for improving Amazon ad campaigns using the New-to-Brand Metric

Segment and Target New Customers

Get to know your customers, both old and new. The NTB metric gives you insights into those shiny new customers. Use that knowledge to understand what makes them tick. Then, create ads and campaigns that specifically target and resonate with this fresh audience.

An illustration showing two advertisers promoting a product online

Spice up your Ad Creative and Messaging

Make your ads stand out! Think about what would catch the attention of someone who’s never heard of your brand’s product before. Show off your unique selling points, promotions, and all the awesome benefits they’ll get from choosing your products.

Refine your ad targeting

Target like a pro by using the NTB metric to refine your targeting game. Get into the minds of your new customers and find out what they like, where they hang out, and what they’re into. Then, adjust your targeting parameters to reach more people who fit the bill.

READ MORE: We’ve decoded the best way you should budget for your Amazon PPC campaigns!

Allocate budget to high new-to-brand impact campaigns

Follow the money: Keep an eye on your budget and allocate more funds to campaigns that bring in those shiny new customers. If a particular campaign is driving a lot of new-to-brand purchases, it’s worth giving it a boost to attract even more fresh faces.

Monitor performance metrics holistically

Look at the big picture: Remember, the NTB metric is just one piece of the puzzle. Take into account other important metrics like total sales volume, ROAS, and customer lifetime value. By understanding how these metrics relate to each other, you’ll get a clearer picture of how your campaigns are performing overall.

A graphic showing Amazon's advertising types: Sponsored Display, Sponsored Products, and Sponsored Brands

Embrace the spirit of experimentation

Don’t be afraid to try new things! Test different ad formats, play around with different messages, and see what resonates best with your new customers. Keep an eye on how these tests affect your NTB metric and use those insights to fine-tune your future campaigns.

Make friends with Amazon’s advertising tools

Amazon has some nifty tools and features to supercharge your campaigns. Explore options like Sponsored Brands, Sponsored Display, and product targeting. They can help you optimize your ads for maximum impact when it comes to attracting new customers.

Analyze competitor new-to-brand metrics

Check out what your competitors are up to. Monitor their NTB metrics to get insights into their customer acquisition strategies. Take note of their tactics, messaging, and targeting approaches. It might spark some fresh ideas for your own campaigns.

Keep a close eye on those new-to-brand metric trends

Look out for any changes in campaign performance, seasonal patterns, or shifts in customer behavior. When you spot these trends, use the data to make smart adjustments to your ad strategies and budgets.

Measure long-term impact

Think and plan long-term. Remember, new customers can become loyal customers. Keep track of their behavior beyond the initial purchase. Look for repeat purchases and potential for long-term loyalty. Building those lasting relationships can have a big impact on your business growth.

By implementing these strategies and avoiding common misconceptions, you can leverage the Amazon New-to-Brand metric to its full potential and drive your business to new heights. Happy selling!

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What is the New-to-Brand Metric on Amazon and How Can Your Amazon Business Benefit From It
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