Intro

These are new products that just came to the inventory and have not been advertised yet. Importance of promoting new arrivals is well-known among all retail professionals (e.g. here are a few pieces of advice from a website angle). Unfortunately, advertising algorithms barely invest in new products due to a lack of data and prioritization.

When products are new, ad platforms usually take time to start advertising them. However, you may want to start advertising the new seasonal drop as soon as possible. By isolating New Arrivals right from the start, ad platforms have to start promoting them right away. This enables you to bring items at full price to capture early revenue with the highest margins.

There are two concepts relevant to New Arrivals:

Profitability: There is a very limited window when products can be sold for the full price. For example, consider summer dresses; people are buying a summer dress between May and June, and after that they start thinking about autumn clothes. This gives a window of only 1.5-2 months when people are open to buying the product for the full price. If you let the algorithm promote these products with other products in a single product set, then New arrivals probably won't get any attention because they are new and the algorithm knows nothing about them. By the time Meta and Google learn about your New Arrivals, those products are nearly at the end of their full price (season) window. When they reach the out-of-season window they become discounted, and the retailer is losing money because they are losing their margin.
Novelty: New arrivals are fresh for the eyes. Often, they will have high ROAS and CTR. People are tired of seeing the same ads every day and infinite remarketing with the same products they already clicked on. Once they see something totally fresh and new, they get more curious.

Setup

Define how long New Arrivals should hold this status. Apply Product Age in days to reflect it in the Segments setup.

How to Segment

Best Practice Tips

If you introduce new items often and have a large inventory of products, this segment can be key to proving value. It is also important to define New Arrivals properly; check it with your merchandiser colleagues.

Success Stories

How Wallis' ROIH Meta campaign increased ROAS by 18%

Evaluation

Frequent questions about New Arrivals:

How do we identify New Arrivals?
How fast can we get New Arrivals in front of customers?

When new stock arrives, it can take a really long time before the ad algorithm gathers enough learning and finally starts showing new products. The New Arrivals segment solves this issue and allows you to capture the highest margins quickly with new products.

Show Money Left on the Table

New Arrivals can first be benchmarked against Promoted Products. This will give a picture about how the currently promoted products are doing overall.

In this example, notice that the spend which goes to New Arrivals is very small (compared to Promoted Products). There are 405 products waiting to be advertised and they are already selling on other channels (see Product Revenue All sources). This is one of the easiest early opportunities to spot!

Looking at New Arrivals Over Time

You can capture positive trends in New Arrivals uplifts as well as an increased amount of promoted products. By selling new stock faster, revenue is secured early on.

Before (3rd June to 2nd July)