Understanding True NTB Customer Acquisition Costs with Amazon Marketing Cloud

New-to-Brand (NTB) customers are crucial when running Amazon Ads. For brands, it's important to know the cost of acquiring a customer who’s buying their product for the first time within the past 365 days.

In the Amazon Ads console, NTB and the cost per NTB can be tracked at a campaign level. However, this provides only a directional view, not the full picture of the true cost of an NTB customer, as it doesn’t account for interactions with other Sponsored Ads or DSP campaigns. 

The NTB metric at the campaign level is based solely on the last-click attributed NTB customer, meaning only the cost of that specific campaign is factored into NTB cost calculations.

To find the true cost of each NTB customer, you need to aggregate costs across all Sponsored Ads and DSP campaigns engaged along the conversion path. This is where Amazon Marketing Cloud (AMC) comes in.

AMC allows you to analyze whether your cost per NTB is high or low when specific campaign types are included or excluded from the path to conversion. It also allows you to evaluate conversion rates with or without certain campaign types.

Once you understand your NTB metrics, you can apply the same analysis to repeat purchase metrics. Knowing the cost of acquisition for repeat purchases and your conversion rate with or without specific campaign types can reveal further optimization opportunities.

Sometimes, I see brands celebrating a 50% repeat purchase rate, but while that’s positive, it also signals a potential issue: Are we growing our new customer base? Perhaps our campaign strategy isn’t effectively targeting NTB customers.

Hector is diving deeper into NTB metrics in AMC and DSP, and we are already spotting exciting optimization opportunities.

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