Thinking beyond dot com: How Newton Baby uncovered the halo effects of TikTok ads on Amazon sales.
January 26, 2024
As a brand with strong organic momentum, we use Haus to validate the incrementality of paid ads on both our DTC & Amazon business. Insights from our experiments have unlocked growth opportunities that will meaningfully improve our bottom line.
AARON ZAGHA, CMO @ NEWTON LIVING
About Newton Living
Newton Living strives to revolutionize the landscape of infant sleep by offering a range of meticulously crafted, healthy, and safe sleep products. At the forefront of their innovation is the creation of the world's first 100% breathable, washable, and recyclable crib mattress. Beyond crib mattresses, their commitment to excellence extends to a diverse array of offerings, including furniture, bedding, and even pet beds. Newton Baby ensures that their products not only meet the highest standards of safety but also cater to the varied needs of families. Operating through direct-to-consumer channels and leveraging the expansive reach of Amazon, Newton Baby brings their transformative sleep solutions to a broad audience, making a positive impact on the well-being of infants and families alike.
As an innovative omni-channel business, Newton Baby sees a significant portion of its sales on Amazon. Focused on understanding and optimizing their marketing strategy across both Direct-to-Consumer (DTC) and Amazon, the Newton Baby team knew they needed to run experiments to assess the incremental impact of key marketing initiatives across both DTC and Amazon. While most digital-based measurement systems only report on .com sales, Newton Baby leveraged Haus's GeoLift product to gain a more comprehensive view of impact across all sales channels and optimize their media mix accordingly.
The Newton Baby team ran 7 experiments through the Haus platform in one quarter to understand the impact of their key marketing channels on both DTC and Amazon revenue. Notably, they ran an experiment measuring TikTok ads’ impact on the business’s total revenue. Given that channels like TikTok may drive more view-through activity that can’t be measured in click-based attribution models, Newton bypassed traditional tracking limitations and used the Haus platform to run a 2-cell geo experiment for 4 weeks, spending on TikTok in 60% of the country and ‘holding out’ 40% of the country. The Haus platform then analyzed and reported the effects of TikTok on both Shopify total revenue and Amazon total revenue.
Results showed that the TikTok ads drove a 4.14% lift on total revenue for the DTC business, but an even larger lift of 5.11% on Amazon sales at a very high confidence. When looking at DTC alone, performance was satisfactory, but expanding the aperture of the analysis to include Amazon impact resulted in a 93% increase in iROAS. Without the Amazon data, the brand might have simply maintained their investment on TikTok, but instead, these results gave the team confidence to increase spend and test again to learn how much they could increase spend in this channel. They also learned that ads on TikTok were more effective at driving Amazon sales than their Amazon advertising program, and have adjusted their channel mix accordingly.