The New Customer Acquisition Feature in Google Ads: A Comprehensive Guide‍ 

What is the New Customer Acquisition Goal and How Does it Work?

The New Customer Acquisition (NCA) goal in Google Ads is designed to help businesses attract new customers through their advertising efforts. This goal can be utilized within Performance Max or Search campaigns, providing flexibility in how it is implemented. The essence of the NCA goal is to either optimize the campaign to bid higher for new customers or to bid exclusively for new customers. 

The NCA goal leverages your existing customer data, such as customer lists and purchase history, to identify potential new customers. By analyzing this data, Google Ads can differentiate between existing and new customers. This data integration allows the system to better understand the characteristics and behaviors of your current customer base, enabling it to find new prospects with similar traits who are likely to convert.

The feature uses advanced machine learning algorithms to adjust bids dynamically. For instance, it can prioritize higher bids for new customers, ensuring that your ads are more visible to individuals who have not previously interacted with your brand. This strategic allocation of the advertising budget helps maximize the chances of acquiring new customers while optimizing your overall campaign performance.

When Could You Use the New Customer Acquisition Feature?

1. Strong Established Brand: When your brand is already well-known and has a strong presence in the market, the NCA feature can help attract new customers who may have heard of your brand but have not yet made a purchase. This is especially useful for maintaining growth momentum.

2. High Repeat Rate: If your business has a high repeat purchase rate, focusing on new customer acquisition is vital to ensure a steady influx of new customers. This balances your customer base and mitigates the risk of over-reliance on repeat purchases.

3. High Lifetime Value: For businesses where customers have a high lifetime value, investing in acquiring new customers is crucial. The long-term returns from new customers justify the initial investment, making the NCA feature an effective strategy for sustainable growth.

4. Scaling Business Growth: For businesses aiming to scale and grow their customer base, focusing on new customer acquisition is essential. The NCA feature ensures that your advertising spend is efficiently used to attract new customers, which is vital for long-term growth.

How to Implement the New Customer Acquisition Feature

Step 1: Upload existing customer lists through the Google Ads Audiences tab. 

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Step 2: Configure your NCA goal on your existing conversion action by defining your customer list and then adding an additional conversion value that will be added for new customers. 

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Step 3: In your campaign settings, chose either to bid higher for new customers or to only bid for new customers.

Image Credit: Google, YouTube.com, April 2023