The New-To-Brand (NTB) metric in Amazon Marketing Cloud (AMC) is a way to measure the effectiveness of a brand’s advertising campaigns in driving new customers to purchase their products on Amazon.
The emergence of tools such as Amazon Marketing Cloud has resulted in a new focal point for marketers – the New-To-Brand (NTB) rate. The NTB rate is a metric that measures the number of conversions that come from customers who have not purchased from a brand in the past year. It tracks the number of new customers that are being attracted to the brand through each ad campaign, rather than just the total number of sales.
However, NTB metrics have not been widely available on Amazon’s primary ad formats. This is changing, and NTB is increasingly becoming an important measure of success for brands. While more traditional metrics like ROAS and ACOS are useful for measuring short-term successes, they mainly target existing customers. Running a campaign with high ROAS can be achieved by retargeting people who have already purchased from a brand.
Retargeting is a sound strategy, but it should not be the sole focus. NTB metrics help prioritize future growth by attracting new customers to the brand. A high NTB rate indicates that a campaign is bringing in many new customers, even if it may increase the ACOS. By using NTB metrics, brands can determine if the extra expenditure is worth the trade-off.
Here are some potential uses of AMC’s NTB metric for brands:
Assess the effectiveness of advertising campaigns: The NTB metric allows brands to determine how successful their advertising campaigns are in attracting new customers to their products on Amazon. By analyzing this data, brands can determine which campaigns are most effective and adjust their advertising strategies accordingly.
Identify new customer segments: The NTB metric can help brands identify new customer segments that they may not have previously targeted. This can provide valuable insights for product development and marketing strategies.
Optimize product listings: By analyzing the NTB metric, brands can identify which products are most likely to attract new customers. This information can be used to optimize product listings and improve product positioning on Amazon.
Measure ROI: The NTB metric can help brands determine the return on investment (ROI) of their advertising campaigns. By comparing the cost of advertising to the revenue generated by new customers, brands can identify which campaigns are most effective in driving sales.
Track customer behavior: By analyzing the NTB metric over time, brands can track changes in customer behavior and identify trends in customer acquisition. This can provide valuable insights for future marketing strategies and product development.
Purpose of the report
• Here we can zoom in on how many and what percentage of sales & units are are new-to-brand (NTB) purchases and repeat purchases at campaign level. This determines the impact of campaigns in term of generating NTB purchases. In addition, we can break it down further with the following table that displays allows the user to export data such as NTB Sales and Sales % to dive deeper. NTB Gateway ASINs is also included to help identify which ASINs are returning the best NTB Sales.
• ‘SP_Campaign_2’ has the highest NTB user purchase % and would be an ideal candidate to increase campaign budget and/or bid prices if the objective is to focus on new users. ‘SP_Campaign_1’ however has the highest percentage of repeat users that come back to buy brand products more than once.