Are you looking to level up your Amazon advertising tactics? One key metric to focus on is your “new-to-brand” (NTB) percentage.
First, it is important to understand what the new-to-brand metric is and why it matters. According to Amazon, the term new-to-brand refers to customers who have not made a purchase from your brand within the past 365 days. This metric calculates the percentage of new customer purchases from your brand that are acquired through your advertising efforts and is a key indicator of the effectiveness of your advertising campaigns. A high New to Brand percentage means that your campaigns are successfully reaching new customers and driving brand awareness.
Here are strategies to help you increase your brand’s NTB percentage and drive more sales on Amazon:
- Optimize non-brand keyword strategy to improve NTB metrics: To improve NTB metrics, it is important to have a well-optimized non-brand keyword strategy. Start by reviewing the past 6-12 months of keyword data and identifying keywords that have not performed well by analyzing metrics such as click-through rate, CPC, and conversion rate. Remove underperforming keywords from the targeting and allocate more budget toward the higher-performing keyword sets. Additionally, create separate campaigns to isolate high-volume keywords to optimize budget allocation and discover opportunities in less frequently searched keywords. By doing this, you will be able to reach more potential new customers and increase your NTB percentage.
- Build a Robust Sponsored Brand/Sponsored Brand Video Strategy: Developing a comprehensive Sponsored Brand/Sponsored Brand Video Strategy is crucial in today's market, as video ads are proven to be highly effective in capturing the attention of potential consumers and driving sales. To fully leverage the potential of video ads in 2023, it is important to take a strategic approach by segmenting video campaigns into multiple targeting tactics. This includes targeting specific categories and non-brand keywords. By utilizing a multi-faceted approach and segmenting your video strategy, you can effectively reach new in-aisle consumers. It is also important to have a good understanding of your brand’s consumer journey and tailor the messaging/creative elements of the video accordingly, to effectively engage and convert potential customers.
- Enhanced Audience Targeting with Sponsored Display and Leveraging the DSP: One of the benefits of Amazon Advertising is the ability to target specific groups of customers with accuracy. Utilize demographic, In-Market and interest-based targeting to reach potential customers who are most likely to be interested in your brand’s products. Amazon Sponsored Display allows this specialized targeting, reaching customers actively shopping on Amazon.
- Combining Sponsored Display and Amazon DSP: Amazon DSP allows you to reach consumers on and off Amazon. This ability can help tap into a vast pool of potential customers who may not have been actively searching for your products on the platform itself. By harnessing the power of advanced targeting options such as interest-based or retargeting tactics, you can increase your visibility to the right audiences and drive conversions more effectively. Implementing both Amazon Sponsored Display and DSP allows brands to utilize programmatic ad buying to reach consumers across multiple channels, both on and off Amazon. By utilizing both tactics, you can expand your brand’s reach and develop a more comprehensive and effective advertising strategy.
When it comes to growing your new-to-brand customer base, it's essential to shift focus from traditional metrics such as Return on Ad Spend (ROAS) to other key performance indicators that better reflect the success of your advertising efforts. Because the goal is to grow your topline revenue through NTB growth, we recommend that your primary KPIs should be Topline Revenue (not just advertising revenue) as well as your NTB %. Secondary KPIs to focus on should be Impressions, Clicks, Detail Page Views, and video completion rate. By considering these metrics, you can more effectively track the performance of your advertising campaigns and make data-driven decisions to improve NTB growth.
When planning your advertising strategy, please don't overlook the importance of investing in upper-funnel tactics. These tactics play a vital role in gaining new customers, increasing brand recognition, and ultimately driving growth in revenue. With the level of competition on Amazon constantly on the rise, it's more important than ever to put a significant portion of your advertising budget toward upper-funnel strategies to stay ahead of the game.
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