How to Use Amazon New-To-Brand metrics in your Ad Strategy
Are you exclusively relying on traditional metrics such as CTR, CPC, CVR, or ROAS to make your campaign optimization decisions? If that’s the case, you might be overlooking a significant opportunity.
With the introduction of New-to-Brand metrics, a completely new approach to gauging the effectiveness of your ad campaign emerges. These metrics provide insights into whether the conversions originate from existing customers or new ones.
In this blog post, we will learn what this metric is all about and how it can be useful for you.
What is New To Brand Metrics?
A new-to-brand customer is someone purchasing from your brand for the first time. New-to-brand (NTB) metrics gauge the percentage of conversions originating from customers who haven’t bought from your brand in the past 365 days. This metric goes beyond assessing the quantity of sales derived from each ad campaign; it evaluates the ability of these campaigns to attract and engage with new audiences. In essence, NTB answers the pivotal question: “How many new customers are we bringing into our brand through our advertisements”.
7 Different New-to-brand metrics available for SB and SD Ad campaigns
There are seven NTB metrics available for Sponsored Brands and Display campaigns. Here is a quick overview of each of them:
- New-to-brand orders: The number of first-time orders for products within the brand over a one-year look-back window
- New-to-brand sales: The total sales coming from new-to-brand orders.
- New-to-brand units: This is the count of units purchased through new-to-brand orders.
- % of orders new-to-brand: The percentage of total orders that are new-to-brand orders. It’s calculated by dividing the number of new-to-brand orders by the total number of orders and then multiplying by 100.
- % of sales new-to-brand: The percentage of total sales that are new-to-brand sales. It’s calculated by dividing the total sales from new-to-brand orders by the overall sales and then multiplying by 100.
- % of units new-to-brand: It denotes the percentage of total sold units acquired through new-to-brand orders. It’s calculated by dividing the number of new-to-brand units by the total number of units and then multiplying by 100.
- New-to-brand order rate (specific to Sponsored Brands): It denotes the ratio of new-to-brand orders to the number of clicks. It’s calculated by dividing the number of new-to-brand orders by the total number of clicks and then multiplying by 100.
New-To-Brand Metrics in DSP: A Wider Range of KPIs
In the realm of Sponsored Ads, advertisers get access to 7 different new-to-brand metrics. However, the scenario takes on a broader and more multifaceted dimension within the DSP arena, where a rich collection of new-to-brand metrics is available. These metrics make it easier to analyze new customer acquisition.
- New-to-Brand Return on Ad Spend: Reflects the relationship between sales generated by new customers and advertising costs.
- Total New-to-Brand Product Sales: The sum of sales generated from all new-to-brand orders.
- Percent of Purchases New-to-Brand: This metric denotes the percentage of purchases made by new customers, considering both promoted and related products.
- New-to-Brand Effective Cost per Purchase (eCPP): This metric denotes the average cost of acquiring new customers if the advertiser had purchased conversions instead of impressions or clicks.
- New-to-Brand Units Sold: The number of promoted brand products that customers purchase for the first time within the last 12 months after exposure to an advertisement.
- Total New-to-Brand Units Sold: This metric represents the total count of new-to-brand units purchased from the brand after being exposed to a DSP ad.
- New-to-Brand Purchases: This metric counts the purchases of promoted brand products made by customers engaging with the brand for the first time within the past 12 months. It also includes Subscribe & Save registrations and rented videos in the calculation.
- Total New-to-Brand Purchases: This tracks the number of ad-attributed purchases made by new customers from the brand after being exposed to a DSP ad.
- New-to-Brand Purchase Rate: This metric represents the number of new customer purchases in relation to the number of ad displays or impressions.
- Total New-to-Brand Return on Ad Spend (ROAS): Reflects the relationship between sales generated by new customers and advertising costs.
- New-to-Brand Product Sales: This metric represents the sales generated by new-to-brand orders.
- Total New-to-Brand Purchase Rate: This metric calculates the number of new customer purchases who were exposed to a DSP ad in relation to the number of ad displays or impressions.
How to Use New-To-Brands Metrics?
1. Assessing the Impact of Campaigns on Attracting New Customers
Acquiring new-to-brand customers is a paramount objective for any brand selling on Amazon. By closely monitoring the New-to-Brand data within your campaigns, you gain valuable insights to determine the campaign’s efficacy in generating new orders and validating the advertising expenditure invested in acquiring these orders.
2. Focus on New Products
When monitoring the performance of your products, pay special attention to those with a notably higher percentage of new customers compared to others in your catalog. By focusing your advertising efforts on these products, you can effectively maximize the influx of new customers and orders for your brand. This strategic approach ensures that you harness the full potential of these products to expand your customer base.
3. Gauge Effectiveness of Competitor Targeting
With a competitor product or keyword targeting campaign, you aim to attract customers who are inclined to purchase products from your competitors. So, If you see that your competitor’s product targeting campaigns have a high percentage of new-to-brand orders, it may be a good indicator of the effectiveness of that campaign. Conversely, a low percentage of new-to-brand orders suggests that your campaigns have not been effective in enticing customers away from our competitors.
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Conclusion
Now, you are no longer limited to looking at ROAS and conversion rate numbers to evaluate the efficiency of your campaign. The introduction of ‘New-to-Brand’ metrics presents new, super-important metrics for assessing the effectiveness of an ad campaign in acquiring new customers. These metrics also help to plan future marketing strategies by providing insights into customer acquisition costs.
But remember measuring new brand metrics is important; however, analyzing the performance of the existing customer base is equally crucial, as it allows us to measure brand loyalty.
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