Etsy Ads: A Complete Guide to Boosting Sales in 2024

Reading Time: 15 minutes

If you’re an Etsy seller seeking to enhance your visibility, reach a wider audience, and ultimately drive more sales, Etsy Ads might be the perfect tool for you.

A great tip to remember right from the start: not all products are created equal when it comes to advertising.

One of the secrets to maximizing the potential of Etsy Ads is to strategically choose which items to promote based on their popularity, profitability, and relevance to market trends.

Let’s dive deeper and unlock the full potential of Etsy Ads together.

Etsy Ads: What is it?

Etsy Ads is an advertising platform that allows sellers on Etsy to promote their listings on the site. It’s an opportunity to reach a broader audience and potentially increase sales.

These ads appear in prominent locations across Etsy, including at the top of search results, offering maximum visibility to shoppers.

The primary advantage of using Etsy Ads is increased visibility, potentially leading to higher traffic and sales. It’s especially beneficial for new shops looking to gain exposure or established sellers wanting to promote a new product.

However, it comes with a cost. Sellers pay a fee for each click, and there’s no guarantee of a sale. Understanding how to optimize and analyze ads can help maximize ROI.

How To Set Up and Get Started With Etsy Ads

Step 1: Navigate to Etsy Ads

Firstly, log into your Etsy account. From your shop manager, click on ‘Marketing‘. In the drop-down menu, select ‘Etsy Ads‘.

Step 2: Start a New Campaign

On the Etsy Ads page, you’ll see an option to ‘Start a new campaign‘. Click on it.

Step 3: Choose Your Listings

You’ll be prompted to select which listings you want to promote. You have two options here.

• Allow Etsy to choose: Etsy can automatically select listings based on factors like popularity and relevancy.
• Manually select: You can choose the listings yourself. This is a good option if you have specific items you want to promote, such as new products or best sellers.

Step 4: Set Your Daily Budget

Now, you need to decide how much you’re willing to spend on advertising each day. Etsy will never exceed this amount. The minimum budget is $1 per day, but you may want to start higher to get more visibility.

Step 5: Review and Start Advertising

Once you’ve selected your listings and set your daily budget, review your settings. If everything looks good, click on ‘Start Advertising‘. Your campaign will now be live.

Step 6: Monitor Your Campaign

Once your campaign is live, it’s important to monitor its performance. Go to the Etsy Ads dashboard to see metrics like impressions, clicks, cost, and revenue from your ads.

Step 7: Optimize Your Ads

Based on the performance data, you may want to make changes to your campaign. This could involve adjusting your daily budget, changing which listings you’re promoting, or tweaking your listings themselves (such as the title, tags, or photos).

Your product listing is your ad, so it’s crucial to optimize each element.

• Images: Use high-quality, eye-catching images that accurately represent your product. Include multiple angles and use the opportunity to showcase the item in use.
• Title and Tags: Include relevant keywords that your target audience might use to search for your product. This can help ensure that your ads appear in relevant searches.
• Description: Make sure your descriptions are clear, informative, and persuasive. Highlight the unique features and benefits of your product.

Etsy Ads isn’t a set-it-and-forget-it tool.

For the best results, you’ll need to regularly monitor and optimize your campaigns. Experiment with different strategies to find out what works best for your shop.

How To Effectively Optimize Your Etsy Ads

Optimizing your Etsy Ads involves continual testing, monitoring, and adjusting to ensure you’re maximizing your return on ad spend.

Here’s a detailed process to optimize your Etsy Ads:

1. Choose the Right Products for Promotion:

Focus on promoting products that are most likely to bring you sales.

These might be your best-sellers, items with the highest profit margins, or new products you’re trying to promote. Seasonal or trending items can also be a good choice. Test different products to see which ones perform best in your ads.

2. Optimize Your Listings for Better Performance:

Your product listing essentially serves as your ad.

Therefore, each component must be meticulously optimized to attract and convert potential customers. Keyword research is particularly vital in this optimization process. Here’s how you can do this:

Product Titles

Write clear, descriptive titles for your products.

Incorporate keywords that potential customers are likely to use when searching for products like yours.

Utilize Etsy’s search bar for keyword suggestions, or use tools like eRank or Marmalead for a deeper dive into keyword research.

Product Descriptions

Your product descriptions should not only detail what the product is and its unique features but also be laced with relevant keywords.

Ensure the description communicates the value of the product to the customer and entices them to purchase it.

Tags and Categories

Adding appropriate tags and categories is another place where keyword research is crucial.

The tags and categories you choose will help Etsy’s algorithm understand what you’re selling and show your products (and ads) to relevant shoppers.

Use your researched keywords as tags and ensure your product is placed in the most fitting category.

Product Images

High-quality, visually appealing images can significantly impact your ad’s performance.

Ensure you have multiple images from various angles showing product details and, if possible, the product in use.

While keyword research doesn’t directly apply to images, using researched keywords in the image alt text can contribute to SEO value.

Price and Shipping

Competitively priced items with clear, fair shipping costs often perform better in ads.

Etsy shoppers can filter by price and free shipping, so consider these factors when pricing your items and setting your shipping costs.

3. Set an Appropriate Budget

Your daily budget should reflect not only how much you’re willing to spend to reach your sales goals but also how much you can afford.

Starting with a smaller budget and gradually increasing it based on your ad performance can be a good strategy.

Understand Your Profit Margins

Before setting up your Etsy Ads budget, it’s crucial to understand the profit margins for your products.

Calculate the amount of profit you make on each item after costs like production, shipping, Etsy fees, and other expenses.

This will help you determine how much you can afford to spend on advertising each item.

Set Your Advertising Goals

Define what you hope to achieve with your Etsy Ads.

Are you trying to drive more traffic to your shop or increase sales of a particular item?

Or perhaps promote a new product line?

Your goals will influence your budget.

Start with a Test Budget

If you’re new to Etsy Ads, consider starting with a lower test budget to gather data and insights without overextending your resources.

The minimum daily budget on Etsy is $1.00. This initial period can help you understand how Etsy Ads work and how effective they can be for your shop.

Analyze Performance

Once you’ve run your ads for a while, analyze the results.

Look at metrics like impressions, clicks, cost-per-click (CPC), and, most importantly, the revenue generated from your ads. This will give you a sense of how effective your current budget is.

Calculate Your Return on Ad Spend (ROAS)

Your ROAS is the total revenue from your ads divided by the total cost.

For example, if you spent $20 on ads and made $100 in revenue from those ads, your ROAS would be 5 ($100/$20). This means you’re earning $5 for every $1 you spend on ads.

This is a critical metric to understand if you’re pricing your ads effectively.

Adjust Your Budget Based on Performance and Goals

If your ROAS is positive (above 1) and you’re meeting your advertising goals, you may consider increasing your budget to drive more sales.

If your ROAS is below 1, you’re losing money on your ads and may need to reduce your budget or optimize your ads.

Review and Adjust Regularly

Setting your Etsy Ads budget isn’t a one-time task.

Regularly review your ad performance and ROAS and adjust your budget accordingly.

As you gain more data and insights about what works best for your shop, you’ll be better equipped to set an effective budget.

4. Adjust Bids:

In Etsy Ads, you don’t set bids for individual listings.

However, you can indirectly influence your bid amount through your daily budget. A higher daily budget may increase your ads’ chances of winning in the auction and being shown to shoppers.

Here are a few practical and actionable strategies you can use to work within this system and effectively ‘adjust’ your bids:

Set an Appropriate Daily Budget:

Since you can’t manually adjust bids, your daily budget is the primary control you have over how much you’re spending on ads.

Starting with a moderate budget and increasing it based on performance can be a good strategy. A higher daily budget can increase your ads’ chances of winning in the auction and being shown to shoppers.

Monitor Performance Regularly:

Frequent monitoring of your ad’s performance is crucial.

Keep an eye on metrics such as clicks, impressions, cost per click (CPC), and sales attributed to ads. This data can give you insights into how your budget is performing and help you decide if you need to adjust it.

Adjust Your Budget Based on Results:

If you’re seeing a positive return on ad spend (ROAS), consider increasing your budget to potentially drive more sales.

However, if your ROAS is low, it may be more beneficial to lower your budget and focus on optimizing your listings and improving your shop quality.

Optimize Your Listings:

Since Etsy uses your listing as your ad, well-optimized listings can potentially reduce your cost per click and improve your ad performance.

Use high-quality photos, compelling titles and descriptions, and appropriate tags and categories to improve the quality of your listing.

Test and Analyze:

Regularly test different budget levels and product listings to find what works best for your shop. Consistently analyze your performance and make necessary adjustments to your strategy.

5. Monitor Your Ad Performance:

Regularly check your Etsy Ads dashboard to monitor your ad performance.

Look at metrics like impressions, clicks, cost per click, and revenue to assess how well your ads are doing.

6. Analyze and Tweak:

Based on your performance data, make the necessary adjustments.

If a product isn’t performing well in your ads, it may be worth pausing that promotion and trying a different item instead.

Likewise, if you’re getting lots of impressions but few clicks, it may be worth improving your listing images or titles.

7. Review Regularly:

Optimization isn’t a one-time task – it’s a continuous process.

Regularly review your campaign’s performance and make tweaks and changes based on your results. Test different strategies to find what works best for your products and target audience.

The goal of optimization is to increase the return on your ad spend.

That might mean increasing your sales, but it could also mean reducing your costs, depending on your business goals and budget.

How To Analyze Etsy Ads Performance

Analyzing the performance of your Etsy Ads is essential to understanding how your campaign is performing and where improvements can be made.

Here’s a detailed, step-by-step process on how to do this:

Step 1: Access Your Etsy Ads Dashboard

Log in to your Etsy account and navigate to your Shop Manager. From there, click on ‘Marketing‘, then ‘Etsy Ads‘.

You’ll be taken to your Etsy Ads dashboard, where you’ll find a wealth of information about your ad campaign’s performance.

Step 2: Understand the Key Metrics

Familiarize yourself with the key metrics you’ll see on your dashboard. These include:

• Impressions: The number of times your ads were seen
• Clicks: The number of times shoppers clicked on your ads
• Cost: The total amount you’ve spent on your ads
• Revenue: The total amount you’ve earned from sales that came from your ads
• Orders: The total number of orders you’ve received from your ads

Step 3: Analyze Your Overall Performance

Look at your overall ad performance metrics, including impressions, clicks, cost, revenue, and orders.

A high number of impressions and clicks indicates that your ads are getting seen and clicked on, while revenue and orders show you if those clicks are translating into sales.

Step 4: Dive Into Individual Listing Performance

Next, look at the performance of individual listings.

You’ll be able to see how many times each listing has been shown (impressions), how many clicks each one has received, and the revenue you’ve earned from each.

This can help you understand which listings are performing well in your ads and which ones might need to be optimized.

Step 5: Calculate Your Key Ratios

Calculate key ratios like click-through rate (CTR) and return on ad spend (ROAS).

• CTR is calculated by dividing the number of clicks by the number of impressions and multiplying by 100. It represents the percentage of people who saw your ad and then clicked on it.
• ROAS is calculated by dividing the revenue by the cost. It represents how much you’re earning for each dollar spent on ads.

Step 6: Use Your Analysis to Make Adjustments

Use your analysis to inform your Etsy ad strategy.

If certain listings are performing well, consider increasing their budget or promoting similar items.

If your CTR is low, it might be a sign that your listings need to be optimized.

If your ROAS is low, you may need to reconsider your overall budget or the products you’re promoting.

Regularly reviewing and analyzing your ad performance is crucial for successful Etsy advertising.

The insights you gain from this analysis can guide your decisions and help improve your results over time.

How To Identify and Overcome Challenges with Etsy Ads

Overcoming challenges with Etsy Ads is essential to optimizing your advertising strategy.

Here’s a guide to identifying common challenges and taking steps to address them:

Step 1: Identify Your Challenges

The first step is to pinpoint what challenges you’re facing with Etsy Ads.

Common challenges may include:

• Low Click-Through Rates (CTR): Your ads are being seen (impressions), but not many people are clicking on them.
• Low Conversion Rates: People are clicking on your ads, but these aren’t translating into sales.
• High Cost per Click (CPC): You’re spending a lot on ads but not getting enough clicks or sales to justify the cost.
• Poor Performing Listings: Some of your listings might not be performing as well as others in your ads.

Step 2: Analyze Your Ads Performance

Regularly review your Etsy Ads performance, focusing on key metrics like impressions, clicks, cost, revenue, and orders.

Calculate your CTR, conversion rate, and return on ad spend (ROAS) to get a more in-depth understanding of your ad performance.

Step 3: Implement Strategies to Overcome Challenges

• Low CTR: Improve your product photos, titles, and descriptions. Make sure your photos are high-quality and showcase your product effectively. Your titles and descriptions should include relevant keywords and clearly communicate what you’re selling.
• Low Conversion Rates: Work on your pricing, shipping costs, and shop policies. Make sure your prices are competitive and your shipping costs are reasonable. Clear, fair shop policies can also help increase buyer confidence and improve conversion rates.
• High CPC: You can’t directly control your CPC on Etsy as bidding is automated, but you can optimize your listings and improve your shop quality to potentially increase your ads’ relevance and performance, thereby affecting your CPC. Also, consider adjusting your daily budget based on the performance and ROAS of your ads.
• Poor Performing Listings: Analyze your poor performing listings. Are the photos, titles, descriptions, and keywords as good as they can be? Are these products priced competitively? Use your analysis to make improvements to these listings.

Step 4: Understand Etsy’s Ad Policies

Read and understand Etsy’s ad policies to avoid potential pitfalls. Make sure your ads comply with these policies to avoid unnecessary setbacks.

Step 5: Test, Analyze, Adjust, and Repeat

Regular testing and analysis are key to overcoming challenges with Etsy Ads.

Make adjustments based on your analysis, then continue monitoring your performance and making further adjustments as needed. It’s a continuous process of improvement.

Don’t be afraid to seek help.

Etsy has a comprehensive Help Center, and there are numerous online forums and communities of Etsy sellers where you can ask questions and learn from others’ experiences.

Etsy Ads: A Seller’s Checklist to Boosting Sales in 2024

Etsy Ads can significantly enhance your store’s visibility and sales. Here’s a comprehensive checklist for Etsy sellers to effectively navigate and utilize Etsy ads in 2024:

1. Understand Etsy Ads: Start by gaining a thorough understanding of what Etsy ads are, including types of Etsy ads like promoted listings and Etsy offsite ads.
2. Learn How to Set Up Etsy Ads: Familiarize yourself with how to set up Etsy ads. This is crucial for both new and seasoned sellers.
3. Determine Your Etsy Ad Cost: Before diving in, comprehend the Etsy advertising cost. Know how much you should spend on Etsy ads and set a realistic Etsy ads budget limit.
4. Optimize for Etsy SEO: To ensure the success of your Etsy advertising campaign, optimize your listings for Etsy SEO. This increases the effectiveness of both Etsy promoted listings and offsite ads.
5. Choose Between Types of Etsy Ads: Decide whether to use Etsy promoted listings, Etsy offsite ads, or a combination of both, based on your advertising goals.
6. Advertising on Etsy Effectively: Develop strategies for advertising on Etsy that align with your brand and target audience.
7. Plan Your Etsy Advertising Campaign: Carefully plan your Etsy advertising campaign, considering factors like target audience, budget, and desired outcomes.
8. Analyze Etsy Search Results: Regularly check your Etsy search results to understand the impact of your ads and make necessary adjustments.
9. Running Etsy Ads Successfully: Learn the ins and outs of running Etsy ads effectively to ensure maximum return on investment.
10. Evaluate the Success of Your Etsy Offsite Ad: Assess the performance of your Etsy offsite ad campaigns to understand their contribution to your sales.
11. Adjust Based on Performance: Continuously monitor the performance and adjust your strategies based on what works and what doesn’t. This includes re-evaluating your budget and ad content.
12. Time Frame for Etsy Ads to Work: Understand that it might take some time for Etsy ads to work. Be patient and keep an eye on the progress.
13. Starting an Etsy Business with Ads: If you’re just becoming an Etsy seller or starting an Etsy business, consider how ads can be an integral part of your launch strategy.
14. Do Etsy Ads Work?: Evaluate and understand from others’ experiences and data whether Etsy ads work for your type of listings.

By following this checklist and strategically using Etsy ads, you can significantly increase your shop’s visibility and sales. Remember, the key to success with Etsy ads in 2024 is continuous learning and adapting to the platform’s evolving features and audience behaviors.

Etsy Ads – Summary

Etsy Ads present a dynamic and potentially lucrative opportunity for sellers to showcase their products and reach a broader customer base.

With a thorough understanding of the platform’s mechanics, strategic ad setup, and continuous optimization, sellers can effectively increase visibility, drive traffic, and boost sales.

It’s vital to stay updated with evolving trends and adapt your strategies accordingly to remain competitive in Etsy’s dynamic marketplace.

Key takeaways include the importance of carefully selected keywords, the role of shop and listing quality in ad performance, and the need for an active, data-driven approach to manage and optimize your ad campaigns.

As your journey in this ecommerce business continues, don’t forget that these are tools meant to amplify your success on Etsy, but the heart of your enterprise remains your unique, quality products and your passion.

To further enhance your Etsy experience, we invite you to check out our other blog posts on topics such as:

• How to Start an Etsy Store in 2023 (and Make Money)
• 130+ Etsy Shop Ideas You Can Start For Free Today!
• Etsy Shop Manager: Step by Step Guide for Etsy Sellers

Don’t just survive in the world of Etsy—thrive with informed strategy and knowledge.

Etsy Ads – FAQs

What are Etsy Ads?

Etsy offers Etsy Ads, an advertising platform that enables sellers to market their goods within Etsy’s marketplace.

When you create an Etsy Ad, your product listings can appear in prominent spots on Etsy, such as at the top of search results, increasing their visibility and potentially driving more traffic and sales to your shop.

How much does it cost to ad on Etsy?

Etsy doesn’t charge a set fee per ad.

Instead, you set a daily budget for your entire campaign, and Etsy’s algorithm automatically bids for ad placements on your behalf.

The minimum daily budget is $1.00, and there’s no upper limit. Your actual cost will depend on factors like the competition for your chosen keywords and the quality of your listings.

Is it worth it to pay for ads on Etsy?

The effectiveness of Etsy Ads can vary depending on factors like the quality of your listings, your pricing, and the competitiveness of your niche.

Many sellers have found Etsy Ads to be an effective way to increase visibility and boost sales. However, it’s important to monitor your ad performance and return on ad spend (ROAS) to ensure you’re getting a positive return on your investment.

Does Etsy pay for ads?

No, Etsy does not pay for ads. As a seller, you are responsible for setting a daily budget for your Etsy Ads and funding this budget.

How does Etsy ads work?

To set up an Etsy Ad, go to your Shop Manager, click on ‘Marketing‘, then ‘Etsy Ads‘, and follow the prompts to set your daily budget and choose the listings you want to advertise.

Etsy’s system will then automatically bid for ad placements on your behalf.

How can I measure the performance of my Etsy Ads?

Etsy provides an Ads dashboard where you can monitor key metrics like impressions, clicks, cost, revenue, and orders from ads.

By regularly reviewing this data, you can get insights into your ad performance and make informed decisions about your advertising strategy.

What can I do if my Etsy Ads aren’t performing well?

If your ads aren’t performing as well as you’d like, consider optimizing your listings, adjusting your daily budget, or promoting different products.

Regularly reviewing your ad performance and making necessary adjustments can help improve your results.

Can I select which listings to advertise?

Yes, when setting up your Etsy Ads, you can choose to advertise all your listings or select specific ones.

Regularly review the performance of your advertised listings and adjust your strategy as needed to promote your best-performing products.

How are my ads shown to potential buyers?

Etsy Ads are shown in various locations throughout Etsy’s marketplace, including at the top of search results and on relevant product pages.

The exact placement of your ads is determined by Etsy’s algorithm, which takes into account factors like the relevance of your listings to a shopper’s search and the performance of your ads.

Can I pause or stop my Etsy Ads?

Yes, you have complete control over your Etsy Ads.

You can pause your ad campaign at any time if you want to take a break, and you can also stop your campaign completely if you decide that Etsy Ads aren’t the right fit for your shop.