This feature displays a configured icon next to a category if a listing has been added to that category within the "new" listing time configuration made in the store. You'll find the configuration to set the time limit within which the new icon will display here within the admin tool:

SITE SETUP > BROWSING SETUP > "New Listing" Time Limit

You'll find the configuration to set the icon image to use here in the admin tool here:

SITE SETUP > BROWSING SETUP > "New Listing" Icon Url

Both of the above are shown in the following screenshot:

Within that you'll see:

1. This is the time limit within which a listing has been placed that will display the new icon next to that category name in category navigation. For example if you set this to be "24 hours" the new icon will only appear if a new listing has been placed in that category within the last 24 hours. As you get more listings on your site you may consider reducing this value as time goes to make that configuration more relevant to most of your clients. If you do not wish the new icon to display choose the "no display of new listing icon" selection from that dropdown
2. This is the relative url of the new icon image to be used. This icon must be placed into your template set within the directory shown. There will be a configuration for the "new icon" (and other "browsing feature icons") for each language within the software. So be aware of the new icon name across differing template sets and languages.

• This feature can place more drag on page loads. See more about "turning off the new icon" here in the support wiki to decide if you wish to use this feature. You may test page load with and without the feature to see it's affect.