Mumbai: Ahead of the festive season, Amazon Ads has released a thought paper offering a roadmap for digital-first brands to accelerate growth from their first thousand customers to a million-strong base, while sustaining long-term engagement.
According to the study, new customers contribute 66% of brand revenues across categories, underlining the importance of fresh acquisition strategies. In India, consumer appetite for discovery is particularly high, with 84% actively seeking new brands and products, and 88% relying on retail media to try them. The festive season acts as a catalyst, generating 3% more new customers than usual, while fresh product launches can deliver up to 10% higher acquisition.
The paper categorises new buyers into two key cohorts:
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New-to-Brand (N2B): Category shoppers switching from competitor brands.
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New-to-Category (N2C): First-time entrants into a category, more prominent in emerging segments such as luxury beauty and furniture, but lower in established ones like grocery and home care.
To capture these audiences effectively, Amazon Ads prescribes a 3-pillar strategy:
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Educate – Build awareness by addressing customer needs with immersive storytelling, videos, and demos. Example: Loop earplugs used Amazon Ads to introduce a new category, achieving a 47x surge in branded searches and a 40% conversion boost.
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Connect – Establish trust through authentic voices and community-led content. Example: TVS Raider tapped into Amazon MX Player’s gaming show “Gaming Insaan,” seeing a 14% rise in purchase intent; Mamaearth leveraged Korean content to integrate its rice water range into the K-beauty narrative, recording a 12% uplift.
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Drive Action – Maximise visibility during high-intent purchase moments with search and sponsored ads. Example: Figaro Baby Oil used DSP campaigns to reach 2.3 million shoppers within a month, driving a 4x sales uplift.
The study emphasises that consistent visibility (57%) drives more shopper influence than discounts (43%). Brands adopting the full-funnel strategy—spanning education, connection, and action—see up to 39% incremental sales growth compared to single-focus campaigns.
Amazon Ads highlighted its comprehensive ecosystem that enables brands to activate this strategy end-to-end: from video ads on Prime Video and MX Player, to immersive brand stores, live sessions, influencer collaborations, and sponsored products and DSP ads that target shoppers at the moment of purchase.
By integrating these solutions across the customer journey, Amazon Ads positions itself as a one-stop growth partner for brands looking to scale during India’s busiest shopping season.
Click here to download the thought paper
