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At the end of 2018, Amazon rolled out “new to brand” metrics for Sponsored Brands campaigns. In this post, we’ll give you a quick introduction to the metrics: what they are, how many options they have, and what they mean for advertisers. Let’s get started.
What are “New to Brand” metrics?
“New to brand” is determined by Amazon to be a shopper who has not purchased a product from your brand within the past 12 months (retroactive data begins November 1, 2018).
According to Amazon, “Sponsored Brands new-to-brand metrics enable you to measure orders and sales of your products generated from first-time customers of your brand on Amazon. With new-to-brand metrics, you can better measure and optimize in-flight campaigns, as well as plan future marketing strategies, to drive customer acquisition and brand loyalty.”
Here is a quick snapshot of the available metrics you can pull into your columns:
- New-to-brand orders: The number of first-time orders for products within the brand over a one-year lookback window.
- % of orders NTB: The percentage of total orders that are new-to-brand orders.
- NTB sales: The total sales (in local currency) of new-to-brand orders.
- % of sales NTB: The percentage of total sales (in local currency) that are new-to-brand sales.
What does this mean for advertisers?
This move by Amazon signifies a push towards not only serving the high-intent part of the purchase funnel, but also a more brand-focused upper funnel. Advertisers can now gain insight on the ability of your campaigns to bring in new customers to your brand and, subsequently, make more informed budget allocation decisions to achieve your objectives at the campaign and keyword level. This also leads to greater understanding of the degree that Amazon can incrementally grow your ecommerce business.
You can now run campaigns with the goal of increasing brand awareness or generating new customers and make bid pushes based on not just a keyword’s strong ACoS, but also with knowledge of a strong percentage of new customer orders. Similarly, you can understand which keyword categories are best fit for new customer acquisition versus recurring customers.
These metrics are particularly exciting in the case of new product launches, so long as the campaign contains only the new product (since we cannot yet distinguish between ASINs for this metric). New-to-brand orders can provide insight into whether the new product is an upsell product for current customers or captures a new market that the brand was not previously serving.
Another strong application is understanding the impact of bidding on competitor terms. Are you able to successfully drive new brand awareness to your products from bidding on your competitor terms?
Lastly, it is important to remember that these metrics may not be helpful to every campaign type, or even every brand, and they do have certain drawbacks. In cases where your campaign goals are more geared at customer retention for purchase cycles greater than 12 months, these metrics would be potentially misleading in judging success since the metrics wrongly assume that this audience is new to your brand. Similarly, new-to-brand stats could be affected by the start date of when your brand began selling products on Amazon since the metrics only reflect previous sales on Amazon, and the percentage will likely be high if you are a new Amazon seller. Lastly, these stats are only currently available on the Sponsored Brand campaigns, which are typically more expensive ad placements than those in Sponsored Product campaigns.
All in all, Amazon has made great strides in the past year toward supporting advertisers, and the new-to-brand metrics mark another step in the right direction towards more levers and optimization capabilities for Amazon campaigns.
Note: Data is available for Sponsored Brands from November 1, 2018. If you select a start date earlier than November 1, your new-to-brand metrics will be calculated using November 1 as the start date. Also, the metrics are only available for purchases that have occurred on Amazon.
Sources: Amazon Seller Central