Do you know how much it costs to acquire new customers on Amazon?
Unfortunately, many brands today do not know the answer. Luckily, Amazon has introduced a new set of metrics to help determine the cost per acquisition for each new customer and better assist brands and advertisers in future investments on the platform.
Amazon is rolling out a set of new-to-brand metrics to help advertisers estimate the cost of acquiring new customers on Amazon and identify the “most efficient channels and tactics” to achieve their campaign goals.
According to the announcement from Amazon:
We are introducing a new set of metrics, called new-to-brand, to help advertisers identify strategies that can drive customer acquisition and efficient business growth on Amazon.
With this addition to our measurement suite, which includes more than 100 campaign reporting metrics, we’re hoping to help make Mr. Wanamaker’s conundrum a thing of the past.
With the launch of new-to-brand metrics, Amazon Advertising now provides display, video, and Sponsored Brands advertisers the ability to measure and optimize campaigns, as well as plan future marketing strategies, to help grow your customer base on Amazon.
How do “Amazon New-to-brand Metrics” work?
According to Amazon, new-to-brand metrics determine whether an ad-attributed purchase was made by an existing customer or one buying a brand’s product on Amazon for the first time over the prior year.
With new-to-brand, advertisers receive campaign performance metrics such as:
- Total new-to-brand purchases and sales
- New-to-brand purchase rate
- Cost per new-to-brand customer
Amazon New-to-brand metrics: What it means for advertisers
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.
Amazon can determine if an order is new to your brand by reviewing the last 12 months of a shopper’s purchase history. If the shopper has not purchased from your brand within the 12 month look back window, the order is considered new-to-brand.
Pro-tip: New-to-brand data is not available for Sponsored Products at this time. 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.
Here’s the breakdown of each new metric (now rolling out to Seller Central accounts) and what it means for your advertising campaigns.
- % of orders new-to-brand: The percentage of total orders that are new-to-brand orders.
- % of sales new-to-brand: The percentage of total sales (in the local currency) that are new-to-brand sales.
- New-to-brand orders: The number of first-time orders for products within the brand over a one-year lookback window.
- New-to-brand sales: The total sales (in the local currency) of new-to-brand orders.
We are currently utilizing new to brand metrics to better inform our current strategy with clients. Continue to check back on this post as we update with more information and expert insight from our team.
For more information on Amazon’s new to brand metrics, email [email protected]