As the competition on Amazon continues to intensify, it has become increasingly challenging for vendors to stand out and attract new customers. Many vendors struggle to effectively measure the performance of their advertising campaigns and find it difficult to identify the most effective strategies for growing their customer base. In this context, the New to Brand (NTB) metric has emerged as an essential tool for Amazon vendors who want to measure the effectiveness of their advertising campaigns in attracting new customers to their brand. By analyzing the percentage of orders placed by new customers, vendors can optimize their ad spend and create more effective campaigns that appeal to new customers, ultimately driving growth for their business. Here's the NTB metric in more detail and how 2 brands have successfully used it to plan their business.
The New to Brand (NTB) metric is an essential tool for Amazon vendors who want to grow their customer base and increase sales. Introduced in 2019, the NTB metric helps vendors measure the effectiveness of their advertising campaigns in attracting new customers to their brand. By analyzing the percentage of orders placed by customers who have not purchased from the brand in the past 12 months, vendors can optimize their ad spend and create more effective campaigns that appeal to new customers.
According to Amazon Ads, here are examples of the insights you can access through Brand Metrics:
Shopper engagement rate is the percentage of shoppers in the selected category who completed a consideration event or purchase with you.
Customer conversion metric is the total number of shoppers who converted after completing one of the following actions: detail page view, brand search and detail page view or Add to Basket.
New-to-brand sales is the percentage of purchasers who were new to your brand in the last 12 months.
Branded searches are the total number of shoppers who have researched using your brand name but have not gone on to consider you or purchase from you in that category.
Awareness index and consideration index are benchmarks calculated using dozens of shopping engagements that have causal links to consideration and sales.
Purchase segment is the total number of shoppers who are 1) brand customers, 2) those that have purchased from your brand that week but may not purchase again and 3) the top 10% or Subscribe & Save – those who are the top 10% of sale drivers or those that use Subscribe & Save with your brand.
Using the NTB metric, brands can track the performance of their advertising campaigns in real-time and adjust their strategies accordingly. Here are two examples of how vendors have successfully used the NTB metric to plan their business.