Amazon Advertising now provides accessible new-to-brand metrics for Sponsored Brands and Sponsored Display campaigns, allowing for the measurement and optimization of ongoing campaigns. These metrics aim to facilitate the development of marketing strategies that can effectively increase customer acquisition and foster brand loyalty.
What is “New To Band”?
An order is considered new-to-brand if the customer has not purchased from that particular brand during that timeframe.
So how are these metrics calculated? Amazon will model the customer’s purchase history for the past 12 months to determine whether an order is new to a brand. The list below details available new-to-brand metrics for sponsored ads campaigns and keywords.
- New-to-brand orders: The count of initial orders for products within the brand during a 1-year observation period.
- % of orders new-to-brand: The percentage of total orders that are new-to-brand orders. This metric is calculated by dividing the number of new-to-brand orders by the total number of orders and multiplying by 100.
- New-to-brand sales: The total sales (in local currency) generated by new-to-brand orders.
- % of sales new-to-brand: The percentage of sales (in local currency) attributed to new-to-brand orders. This metric is calculated by dividing the total sales of new-to-brand orders by the total sales and multiplying by 100.
- New-to-brand units: The number of units purchased through new-to-brand orders.
- % of units new-to-brand: The percentage of total units acquired through new-to-brand orders. This metric is calculated by dividing the number of new-to-brand units by the total number of units and multiplying by 100.
- New-to-brand order rate (for Sponsored Brands only): The ratio of new-to-brand orders to the number of clicks. This metric is calculated by dividing the number of new-to-brand orders by the number of clicks and multiplying by 100.
How Can New To Brand Metrics Be Utilized?
Leveraging new-to-brand metrics can optimize Sponsored Brands and Sponsored Display campaigns, facilitating new customer acquisition and fostering long-term brand relationships.
Below are some recommendations for optimizing customer acquisition by identifying or creating Sponsored Brands or Sponsored Display campaigns with a specific focus on this goal:
- After the campaign has gathered a minimum of 14 days’ worth of data, closely analyze the campaign’s new-to-brand keyword metrics. Filter keywords based on acceptable ROAS (Return on Advertising Spend) or ACOS (Advertising Cost of Sales) values.
- From the resulting set of keywords, identify those with the highest number of new-to-brand orders. These keywords represent potential targets for driving new-to-brand orders.
- Evaluate the metrics related to new-to-brand units and sales, as they may reveal keywords that generate new-to-brand orders with higher price points and basket sizes.
- Continuously monitor the campaign’s new-to-brand performance over time using the performance dashboard, making necessary adjustments as required.
These metrics can also apply to broader, strategic efforts to refine positioning, competitive pressures, and product;
- Identifying Untapped Market Segments: New-to-brand metrics can provide valuable insights into customer behavior and preferences. Businesses can uncover untapped market segments by analyzing the characteristics and demographics of customers who make new-to-brand purchases. This information can guide marketing and advertising strategies to target these specific segments, tailoring messages and campaigns to attract new customers more likely to engage with the brand.
- Assessing Competitive Positioning: New-to-brand metrics can also offer insights into a company’s competitive positioning. By comparing the percentage of new-to-brand orders and sales against competitors in the same industry, businesses can gauge their market penetration and identify areas for improvement. If the percentage of new-to-brand orders is lower than competitors, it may indicate a need to enhance brand awareness, expand marketing efforts, or improve product differentiation to attract new customers.
- Influencing Product Development: New-to-brand metrics can inform product development decisions by highlighting customer preferences and purchase patterns. By analyzing the new-to-brand units and sales metrics for different products, businesses can identify which products are more successful in attracting new customers. This information can guide product expansion or innovation strategies, focusing on developing new offerings that align with customer preferences and have a higher potential for attracting new customers to the brand.
Where Can These Metrics Be Found?
New-to-brand data has been available for Sponsored Brands campaigns since November 1, 2018. However, if a start date before November 1, 2018, is chosen, the new-to-brand metrics will be calculated based on November 1, 2018, as the starting point.
As for Sponsored Display, new-to-brand metrics have been available for Sponsored Display since May 1, 2021. These metrics are available for seller and vendor product targeting campaigns and seller and vendor audience targeting campaigns.
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Amazon Brand Metrics: Introducing New-To-Brand Analytics was originally published in Openbridge on Medium, where people are continuing the conversation by highlighting and responding to this story.
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