The article, titled “Why New to Brand Sales are Irrelevant on Amazon,” delves into the topic of new to brand sales and their significance in the world of Amazon PPC (Pay-Per-Click) advertising. The author, known as My Amazon Guy, shares his own experiences and insights regarding the metrics and trends associated with new to brand sales. The article challenges the conventional wisdom that new to brand sales are crucial for success on Amazon, arguing that brand loyalty is low and shoppers primarily search for solutions rather than specific brands. The author concludes that brands are essentially dead on Amazon, and instead suggests investment in other platforms such as Tik Tok and user-generated content to build brand identity.
In the video accompanying the article, My Amazon Guy reveals that he has spent a substantial amount of money on Amazon PPC and generated significant sales. However, he notes that only a small portion of those sales can be attributed to new to brand customers. He refutes the claim that his success is solely due to spending on brand terms, highlighting that his brand name advertising is limited and most customers find his products through generic searches. This challenges the notion that brand loyalty drives sales on Amazon and instead emphasizes the importance of providing solutions to shoppers. My Amazon Guy concludes that new to brand sales are not a significant factor for success on Amazon, asserting that brands are essentially irrelevant on the platform, and advocates for alternative strategies to build brand presence.
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Introduction
In the world of e-commerce, Amazon is a dominant force, attracting millions of customers every day. For sellers on the platform, understanding and optimizing their advertising strategies is crucial to success. One key aspect of advertising on Amazon is Pay-Per-Click (PPC) campaigns, which allow sellers to drive targeted traffic to their products. However, there is a growing debate about the effectiveness and importance of New to Brand (NTB) sales data in PPC campaigns. This article will explore the significance of NTB sales data, debunk some misconceptions, and provide insights for sellers to consider when developing their advertising strategies.
Spending on Amazon PPC
Amount spent on Amazon PPC
To understand the significance of NTB sales data, it is important to establish the amount spent on Amazon PPC campaigns. In the case of the author, he has invested a substantial amount, totaling $791,000 of his own money. This sizable investment serves as the foundation for analyzing the impact of NTB sales.
PPC metrics and insights
Analyzing PPC metrics can provide valuable insights into the effectiveness of advertising campaigns. In the case of the author, the correlation between PPC spend and sales trends is evident. The more he spends on PPC, the more sales he generates. This sets the stage for delving deeper into the NTB sales data and its implications for sellers.
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New to Brand Sales Data
Definition of new to brand sales
New to Brand (NTB) sales refers to customers who have never purchased from a particular brand before. It is an essential metric for gauging brand loyalty and the effectiveness of marketing efforts in acquiring new customers.
PPC spend year to date and new to brand sales
When examining the NTB sales data, it becomes apparent that the author has generated $1.6 million in sales through Amazon PPC. However, only $158,000 of that can be attributed to new customers who have never purchased from him before. This highlights the importance of attracting new customers and expanding the customer base.
Misconceptions about spending on brand terms
One misconception often raised is that significant spending on brand terms leads to higher NTB sales. However, the author clarifies that he has spent less than $1,700 on his brand term, “Age of Sage,” during the year. Therefore, the $54,000 generated in NTB sales cannot be directly attributed to brand term spending. This challenges the assumption that brand term spending is the primary driver of NTB sales.
Actual brand term spend
To support his argument, the author provides an example search for “Artisan soap.” Despite being a repeat customer, users tend to search for solutions rather than specific brand names. The author’s advertisements appear multiple times on the search page, demonstrating the role of solutions-based searches in driving sales, even from existing customers.
Shoppers’ Behavior on Amazon
Shoppers buy solutions, not brands on Amazon
An essential insight into shoppers’ behavior on Amazon is that they are primarily looking for solutions, not specific brands. While brand loyalty exists in certain cases, it does not dominate the overall shopping experience on Amazon. Consequently, focusing solely on brand terms may not yield the desired results.
Impression data shows low brand term searches
Analyzing impression data further supports the notion that brand terms have a limited presence on Amazon. In fact, brand terms account for only approximately 4% of all available impressions on the site. This signifies that most shoppers do not specifically search for brand names, reinforcing the need to focus on solutions-based advertising strategies.
Brand loyalty is low on Amazon
Another important insight is that brand loyalty is relatively low on Amazon compared to other platforms. While some customers may have repeat purchases, many may not even remember the brand they previously bought from. This emphasizes the need for sellers to prioritize attracting new customers and offering solutions that meet their needs.
Significance of New to Brand Sales Data
No actionable tips from this data
The analysis of NTB sales data does not provide immediate actionable tips for improving advertising strategies. Instead, it serves as a means to challenge misconceptions and foster a deeper understanding of shoppers’ behavior on Amazon.
Importance of winning an argument against a troll
The primary significance of understanding NTB sales data lies in winning arguments against misconceptions perpetuated by critics. By debunking the assumption that significant spending on brand terms is the key to success, sellers can make more informed decisions based on data and insights.
Limitations of Increasing Brand Term Spend
Low brand term search volume
One limitation of increasing brand term spend is the low search volume for specific brand terms. In the case of the author, only 6,000 people per week search for his brand, “AG of Age,” on Amazon. This limited search volume restricts the effectiveness of increasing spending on brand terms.
Efforts to improve brand identity
While brand identity is crucial for long-term success, it may not directly influence sales on Amazon. The author acknowledges the importance of improving brand identity but emphasizes that it may not significantly impact PPC strategies or NTB sales in the short term.
Not changing PPC strategy
Despite the conclusions drawn from NTB sales data, the author advises against changing PPC strategies based solely on brand terms. The lack of significant search volume for brand terms suggests that allocating resources to solutions-based advertising strategies may yield better results.
Investing in Other Platforms to Build Brand
Investing in Tik Tok
To enhance brand visibility and attract new customers, the author suggests investing in other platforms such as TikTok. Leveraging the reach and appeal of social media platforms can help build brand recognition and capture the attention of potential customers.
Investing in user-generated content (UGC)
User-generated content (UGC) is another avenue for building the brand and engaging with customers. By actively encouraging customers to create content related to their products and sharing it on social media platforms, sellers can foster a sense of community and loyalty.
Conclusion
While NTB sales data may not provide actionable tips for immediate improvement, its analysis sheds light on important aspects of advertising strategy. Understanding shoppers’ behavior on Amazon and recognizing the limited impact of brand terms can help sellers make more informed decisions. By investing in other platforms and prioritizing solutions-based marketing, sellers can build their brand effectively and attract new customers. Ultimately, NTB sales data serves as a tool to challenge misconceptions and reevaluate advertising strategies in the ever-evolving landscape of e-commerce.
