Maximizing Your Advertising ROI: How the NTB Metric Can Help Amazon Vendors Acquire New Customers

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.

Example 1: Clothing brand

A clothing brand was struggling to attract new customers despite running several advertising campaigns. The brand was using a variety of targeting options, including keywords, interests, and product categories, but was not seeing significant growth in its customer base. The brand decided to analyze the performance of its campaigns using the NTB metric. It found that while some campaigns were generating a high percentage of new customers, others were not effective at attracting new customers at all. The brand then focused on optimizing the campaigns that were generating the highest NTB percentages. It refined the targeting options and creative assets to appeal more effectively to new customers. Over time, the brand's NTB percentage increased significantly, indicating that its advertising campaigns were more effective at attracting new customers. As a result, the clothing brand saw an increase in sales and a growing customer base, helping to drive long-term growth for the business.

Example 2: Home goods brand

A home goods brand had been running sponsored product campaigns for several months but was not seeing a significant increase in sales or customer acquisition. The brand analyzed its campaign performance using the NTB metric and found that its campaigns were not attracting many new customers. The brand decided to adjust its campaign strategy by creating a new campaign specifically targeted at new customers. It used a different set of keywords and created unique ad creative to appeal to new customers. The brand also offered a discount to first-time customers to encourage them to make a purchase. As a result of this new campaign, the brand saw a significant increase in its NTB percentage, indicating that the campaign was successful at attracting new customers. The brand also saw an increase in sales, which helped to drive growth for the business. The New to Brand metric is a valuable 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. The two examples demonstrate how the NTB metric can be used to identify areas for improvement in advertising campaigns and develop strategies that drive growth for the business over time. By leveraging the NTB metric effectively, Amazon vendors can build a strong customer base and drive long-term success for their business.