Whether it's other Etsy sellers singing their praises or complaining about them, if you've been selling on Etsy for any amount of time then you've probably heard about Etsy Ads, and if you're finding yourself reading this guide, you're probably not quite sure yet if Etsy ads are worth it for your Etsy shop. In this article, we'll help you remedy that by helping you make sense of Etsy Ads to give you a solid understanding of how they work and how much you can expect them to cost, so that you can make an informed decision about incorporating Etsy Ads into your Etsy selling strategy.
The Basics: How Do Etsy Ads Work?
We'll start by taking a look at the very basics of Etsy Ads to help give you an initial understanding of how both types of advertising on Etsy work. This section will give you an overview of Etsy Ads, discuss the benefits of using Etsy Ads, and explain where you can expect your ads to appear.
What are Etsy Ads, and How Do They Work?
The term Etsy Ads encompasses two distinct advertising programs available to Etsy sellers – onsite ads and offsite ads. Generally, when people talk about Etsy Ads, they're referring to the former, but this guide will cover both.
Etsy onsite ads are ads that are run on a PPC (pay-per-click) basis, and are based on a keyword bidding system. These ads enable you to promote your Etsy listings within certain categories or search results, as well as across Etsy itself (such as promoted items within listings, ads that appear on a buyer's home page when they log in, and more), with the highest bidder winning the premium ad slots. You'll need to actively enroll your Etsy listings in this type of advertising.
Etsy offsite ads are commission-based, meaning you pay only if you've made a sale through an ad, not just if a buyer clicks. All Etsy sellers are automatically enrolled in offsite ads, and pay a commission based on their revenue in the preceding 365-day period. Sellers who have made less than $10,000 in sales in the 365 days leading up to the order resulting from the ad will pay a commission of 15%, while those who've made more than $10,000 in that period will pay a fee of 12%. Additionally, the former group can choose to opt out of Etsy offsite ads, while the latter cannot.
What are the Benefits of Advertising with Etsy Ads?
Aside from the obvious advantages of promoting your Etsy listings, advertising with Etsy Ads – both on- and off-site – is a great way to get the word out about your brand. This is especially important if you already sell on multiple marketplaces aside from Etsy, or if you'd like to expand your Etsy shop to new platforms with helpful multichannel commerce management tools like ExportYourStore. Etsy Ads are also a great strategy for gaining traction for new listings, and gives them a leg up to help them receive better organic ranking and more engagement faster.
Where Will Your Ads Show Up?
Etsy's PPC ads will show onsite, and will be incorporated into buyer search results for the keywords you've bid on, in product categories, or even on the Etsy home page when a buyer logs in to their Etsy account. Both in search results and in product categories, you'll see them in the top four slots, then dispersed among the results as you scroll. The premium placements at the top four slots are reserved for the highest bidders, and the lower slots are for sellers whose bids were lower and whose listings received lower quality scores from Etsy.
Etsy's offsite ads, on the other hand, may be displayed on Google, across the Google Display Network (i.e. sites who are enrolled in Google Ads), Bing, Facebook, Instagram, Pinterest, and Etsy Partner Publishing sites. Which listings are displayed is determined by several factors, including the quality of the Etsy listing and the policies of the particular display network. You won't be able to choose which of your listings is promoted through offsite ads, but you'll be able to view your offsite ads through the Stats section in your Shop Manager.
Types of Etsy Ads
As mentioned earlier, Etsy offers its sellers two types of advertising options: onsite ads and offsite ads. Each type of ad is displayed in different locations and works on a different payment system, but both types hold a lot of sales-driving potential. Etsy Ads are not the only way to promote your Etsy listings, however. In this section we'll dive deeper into each type of Etsy ad, and explore additional promotional tools you can use alongside them to drive even more sales.
The first type of Etsy ad is Etsy's onsite ads, which appear in strategic places on the Etsy marketplace itself. This type of ad lets sellers select which listings they'd like to promote, choose the keywords they'd like to promote them with, and place bids on each keyword. The higher the bid, the more likely a given listing is to appear in the promoted listing slots in product categories and search results. This type of advertising is known as CPC (cost-per-click) or PPC (pay-per-click) advertising, and just like the name implies, is priced per click on your ad, rather than per sale. Whether or not your ad places in a given ad slot is determined by more than just your bid, however; Etsy also takes into account the quality of your listing when determining whether to place your ad or the competition's. Etsy automatically enrolls all your listings into Etsy ads by default, but you can and should remove listings you don't want to promote and segment those you do into targeted ad groups and campaigns to ensure that your ad spending goes to where it counts.
Your daily advertising budget will be capped by Etsy, with all sellers starting out at a maximum of $25 USD advertising budget per day. Your daily budget cap will be reevaluated once a week if you're enrolled in Etsy Payments, and once per month if you're not. Additionally, your ads will only appear in countries where you ship to, so you don't have to worry about buyers who can't actually buy clicking on your ads and biting into your advertising budget.
Etsy automatically enrolls all of its sellers into its offsite ads program, meaning you don't have to do anything to take part in this advertising method. This is the second type of Etsy ad, and being based on a commission method is largely hands-off for sellers. Etsy will select listings they think will do well in their offsite ads program for enrollment, and will determine where they're advertised on their offsite network based on a variety of criteria. Your listing will have a better chance of being selected for offsite ads enrollment if it is properly optimized – that is, it's a well-made listing that contains the relevant data in the best format for the algorithm to pick it up.
Etsy's offsite ad commission rate is based on your sales for the 365-day period preceding the sale attributed to the offsite ad: Etsy shops with a less than $10,000 USD in sales will be charged a 15% commission, while those with over $10,000 USD in sales will be charged a 12% commission, with both rates capped at $100 USD per sale. And while you can opt out if you've made less than $10,000 USD in sales in the preceding 365-day period, we generally advise against – it's essentially free advertising for your store, and helps get the word out about your brand to virtually every corner of the internet. Unless Etsy's commission rate doesn’t make sense for your business (i.e. you're selling items with a relatively small profit margin and Etsy's commission puts you in the red), Etsy's offsite ads are a great tool for expanding your reach well beyond Etsy itself.
Promotions & Offers
Aside from the two types of ads, Etsy also offers a wealth of seller tools to help you promote your listings on-site and drive sales. From the handy Sales and Coupons Dashboard to the newly-added Explore feature, marketing your products on Etsy is a whole different beast than it was just a few years ago. Built into your Etsy selling account are four valuable promotional tools for driving sales: offers, sales, promo codes, and automatic targeted offers.
Make an Offer
We'll begin by taking a look at the first of Etsy's three built-in promotional tools, the Make an Offer feature. Allowing buyer offers started out on eBay, and has been adopted by Etsy and additional marketplaces like Depop. All the Make an Offer feature does is allow buyers to send you offers on items whose listing have the feature enabled. You'll be able to choose to allow all offers, or set a minimum percentage discount as a minimum threshold for the offers you're willing to review so you don't waste time dealing with unreasonably low offers. This makes the Make an Offer feature a great tool to move stock quickly, and an indispensable tool if you're having trouble with your pricing strategy, as it lets you see how much value buyers see in your item.
Running a Sale
The next promotional tool you'll have access to as an Etsy seller is running a sale on all or some of your listings. You'll be able to choose to either discount items by a certain percent, or offer free standard shipping on sale items. Etsy will prompt you to define whether the sale will run in all countries you ship to or just one country, let you decide if you want to define a minimum order total or item amount for the discount to be applicable, and have you input the duration and name of the sale. You'll also be able to add sale-specific terms and conditions that will appear on all listings that are included in the sale. Finally, you'll choose whether you want to run the sale on your entire store, or select your desired listings manually.
Sales are a great way to take advantage of shopping events and holidays, as well as move stock quickly when you need to make room for new items. Try to plan your sales in advance whenever possible to coincide with shopping peaks like holidays or retail events (i.e. Black Friday), and make use of marketing calendars such as Etsy's own calendar available in the Seller Handbook.
Generating Promo Codes
As opposed to sales, which anyone can access, promo codes are discount codes you can share with specific shoppers. A promo code is applied by the buyer at checkout, and gives them the discount you've defined for that code. You'll be able to create promo codes that give buyers a fixed discount amount, a discount percentage, or free standard shipping when applied. Just like sales, promo codes can have limits on duration of validity and/or order total or quantity minimums. Promo codes can be limited to certain listings, or be valid for every item in your Etsy shop.
If you sell on multiple channels with ExportYourStore, you can use some of your additional selling channels to share promo codes with buyers. If you integrate your Etsy shop with Instagram, for example, you can simultaneously sell and promote your Etsy shop on Instagram by advertising an Etsy promo code to your followers.
Sending Targeted Offers Automatically
One of the most powerful marketing tools in an Etsy seller's arsenal, targeted offers help you strike while the iron is hot. Targeted offers are intended for turning buyer interest into purchases and retargeting buyers who've purchased from your shop in the past. Targeted offers are available in three types: Thank You Offers, Abandoned Cart Offers, and Favorited Item Offers.
Thank You Offers are intended for retargeting buyers who've already made a purchase. These offers are sent automatically when their order ships out, and work with a promo code. You can set them up as percentage discounts, fixed discounts, or free standard shipping, and decide whether you want to retroactively include buyers from the previous 90 days.
Abandoned Cart Offers work much in the same way, with a promo code. The difference is this type of offer is intended to increase conversion by enticing buyers who've added an item from your shop into their cart to proceed with their purchase. They're automatically sent to buyers who don't complete checkout, and like the previously discussed Thank You Offer, give buyers either a percentage discount, fixed discount, or free standard shipping. With this type of offer, you can retroactively include shoppers who have left your items in their cart from 30 days prior.
The final kind of targeted automatic offer is the Favorited Item Offer. Like its name implies, it enables you to automatically send a promo code to buyers who've favorited an item from your Etsy shop. Like the previous automatic offers, you can determine whether the promo code gives buyers a fixed discount, a percentage discount, or free standard shipping.
How to Start Advertising with Etsy Ads
Setting up Etsy Ads on your Etsy Shop is a relatively simple and straightforward process that can be done directly through the Marketing section of Shop Manager. But there's much more to running a successful campaign on Etsy Ads than just turning on ads and enrolling your listings, of course. Remember, Etsy's onsite ads are priced per click, which means that you'll want to optimize your campaigns before launching to get the highest possible ROAS from each click. This section will discuss how to do just that, as well as go over the technical side of how to set up Etsy Ads in practice, so you can benefit from optimized, successful Etsy Ads campaigns right from the start.
Identifying Your Target Audience and Selecting Your Keywords
Identifying and deciding who you will be targeting with your ads is the first step to any successful ad campaign. You'll need to begin by understanding who your target audience is – that is, what kind of buyer you want to target with your ads, but not all shoppers that you want to sell your items to. It's important to be precise in your segmentation, and to remember that your target audience (and your entire ad campaign) can and should change and evolve with time. By using the target audience you defined, you'll be able to establish the backbone of your Etsy Ads campaign: your keywords.
To find your keywords, take your target audience in mind and utilize keyword research tools to help you find what those shoppers are likely to be searching for. Let's say, for example, that your Etsy shop sells women's jewelry, and one of the target audiences you've defined is women's spouses. In the weeks leading up to Valentine's Day, you might choose to bid on the keyword "Valentine's Day gift for her" to get the most exposure to this audience during a peak traffic period. This keyword will not be relevant come March, however, and your Etsy Ads campaign will have to adapt accordingly.
Finally, when selecting the listings you want to promote, you'll want to choose those with an already high conversion rate. The reason for this is that you want to spend your advertising budget where it counts, and if you're paying per click on your ad, it counts only when that click translates into a sale. For the rest of the listings in your store that have a less-than-optimal conversion rate: optimize them. The richer and more informative your Etsy listings are, the higher your chances of making a sale, through Etsy Ads or organically. Once you've gained some mileage using Etsy Ads, you'll be able to effectively leverage them to promote new listings, too.
Setting Up Etsy Ads Through Shop Manager
Once you've got your target audience segmented and your keywords selected, you can go ahead and set up Etsy Ads for the listings you wish to promote. To do this, simply log into your Etsy account and go to Shop Manager. Then, select Marketing from the navigation pane, and click on Etsy Ads.
Setting Your Daily Advertising Budget
When you first set up Etsy Ads, Etsy will cap your daily advertising budget at $25. This is plenty for the majority of Etsy sellers, but if you're using your entire budget up on a regular basis, Etsy may choose to increase it at their discretion.
For sellers just starting out with Etsy Ads, we recommend selecting a relatively small ad budget – no more than $5 per day – and selecting just a few listings for promotion. Remember to select listings that are already top converters, so that your daily advertising budget is spent on clicks that result in sales. Note that your advertising budget is a maximum limit for daily ad spending, meaning you'll never spend more than that amount on ads.
Tracking Your Etsy Ads' Performance
You can track your Etsy Ads' performance through the Stats section of your Shop Manager. Simply scroll down past the main stats graph, and click on Etsy Ads. You can also get info about your traffic sources, and how much can be attributed to ads, by clicking on Etsy Search.
Once you've begun running Etsy Ads, we echo Etsy's recommendation of waiting 30 days to assess your ads' performance before making any adjustments. After a month of running ads, you should be able to get a good idea of what works and what doesn't, and make adjustments accordingly.
How Much Does It Cost to Advertise on Etsy?
The costs of running Etsy Ads will heavily depend on the listings you choose to promote, when you choose to enroll them in Etsy Ads, and how many of your listings you plan to promote. This section will give you a simple breakdown of the fees associated with both types of Etsy Ads, and go over some things to consider when deciding how much you should spend on promoting your listings with Etsy Ads.
What Are the Fees for Advertising on Etsy?
There are two types of Etsy advertising, and each type has its own associated fees system. The first type is Etsy's offsite ads, which work on a commission-based system. This means that you only pay a fee when someone makes a purchase through your ad. You're automatically opted in to these ads as an Etsy seller, and, depending on your Etsy shop's revenue in the preceding 365-day period, you can expect to pay a flat fee of either 12% or 15% on the total transaction amount. The second type is Etsy's on-site promoted listings, which work on a cost-per-click (CPC) system. This means that you place a bid on certain keywords, define your daily advertising maximum, and – based on your bid and listing quality score – your promoted listings can be selected to appear in promoted ad slots in buyer searches. Any time a buyer clicks on your ad, you'll pay according to your bid, but your daily ad spend will be capped by your predefined budget.
How Much Should I Spend on Etsy Ads?
For the average seller starting out with Etsy Ads, an ad spend maximum of around $5/day is generally a good starting point. Most sellers will not reach this maximum every day, and it will enable you to get a better feel for how much you should bid on each keyword, which listings are worth promoting, and which of your listings convert more when promoted through Etsy Ads.
Are Etsy Ads Worth It?
It's a simple question with a not-so-simple answer: are Etsy Ads worth it? The simple answer is that for the vast majority of sellers, Etsy Ads are absolutely worth it. Promoting your Etsy listings through both types of Etsy Ads brings a bigger benefit than the sales you'll make through the ads – they'll also help get the word out about your brand and shop and help cement your reputation on Etsy and beyond. The not-so-simple answer is that for some sellers, enrolling their listings in one or both types of Etsy Ads may simply not be financially feasible, or (in rare cases) can provide little benefit in return for the time and monetary investment required.
What Are the Costs of Etsy Ads?
The costs of running Etsy Ads will depend on several variables: the keywords you're bidding on, your daily advertising budget, the quality score of your listings, and how many listings you promote.
For more competitive keywords, you'll have to set a higher bid in order to outbid the competition and get your ad published. Your daily advertising budget will cap how much money you'll spend on Etsy Ads every day, and could have an impact on your overall ad spend if you consistently reach your daily maximum. Next, the quality of your listings and their Etsy-assigned quality score will have a direct impact on the likelihood that they'll be selected to win out over the competition in the ad auction, even if your bid matches or even exceeds your competitors'. Finally, the number of listings you choose to promote will directly affect how many clicks you pay for, so the more listings you promote, the higher your ad spend is likely to be.
For most sellers, the costs of Etsy Ads works out to approximately 50¢ per click. If you take the number of clicks you pay for every sale you make through ads (that is, 1 in every 5 buyers who click on your ad make a purchase), you'll be able to work out what your daily ad budget should be for a given number of sales using the data from your existing campaigns.
What is the Return on Investment of Etsy Ads?
While it's impossible to predict the ROI for any ad campaign, it's possible to estimate what it should be based on several variables. As mentioned earlier, the average cost of a click from an Etsy Ads campaign is 50¢. Since a good ROI is between 75-100%, you'll want your ad campaign to average a return of about $1 for every 50¢ in ad spend. In addition to looking at your ROI, you'll want to look at your click-to-sale ratio and weed out any underperforming listings.
For both of these metrics, you'll want to give your ads a bare minimum of two weeks to run undisturbed before making any changes and optimizations.
What Factors Impact Your Ad Performance?
The performance of your Etsy Ads is influenced most by two main factors: the quality of your listings and the bids you set for your ads.
Every listing you enroll in Etsy Ads will be assessed by Etsy and assigned a quality score. While the score is not something Etsy shares with its sellers, it is a major factor in determining whether or not your listing wins the auction for a given ad placement. In fact, if there are two listings with the same bid on a given keyword are competing for an ad slot, the listing with the higher quality score will win out every time. That's because higher quality listings result in higher conversion and more sales, which is not only in the seller's interest, but also in Etsy's.
The bids you set on your ads (and the daily budget you allocate for ad spending) will determine how competitive your bids are, and will have a direct effect on how many ads your campaign will run. Setting too low of a budget means your ads will not appear in optimal spots to snag buyers before they make their purchase with the competition, which means you'll be paying for clicks but not making any sales.
Tips for Running Successful Etsy Ads
There are a lot of moving parts involved in running a successful Etsy Ads campaign, and with so many factors to take into account, it may seem overwhelming. To make it easier for you to get started, we've put together a list of key tips to help you launch and run a successful Etsy Ads campaign.
Optimize Your Listings for SEO
Optimizing your listings for search engine performance is the first step to not only a successful ad campaign, but also to better organic search engine ranking and a higher conversion rate. Optimized listings are more likely to receive a better listing quality score from Etsy, and as such are more likely to place in optimal ad spots even when the competition on a certain keyword is tough. There are many factors that go into creating an optimized Etsy listing, and you can read more about how to optimize your Etsy listings in our blog.
Take Eye-Catching Product Images
Your listing images are the best tool you have for selling your item to your buyer, since online selling doesn't enable shoppers to physically interact with the product before they make a purchase. Good-quality, eye-catching images that present the item in a variety of angles are your main way to persuade shoppers to buy, but they're also an important factor in determining your listing's quality score. Listings with minimal images, listings that omit videos, or listings with low-quality images will receive a lower quality score, which will have a direct impact on your Etsy Ads performance.
Utilize Targeted Keywords
Before launching your campaign, you'll want to know exactly which keywords you're aiming for. The more targeted your keywords, the better ROI you can expect from your ad campaigns. Think of it this way – even if your listing is perfectly optimized, even if it's a listing that has an impressive conversion rate in organic searches, and even if you've outbid the competition for the most optimal ad slots, you're simply not going to make a sale through your ad if you're selling an item that buyers are not looking for in their search. At best your ad will be overlooked as buyers scroll past to find what they're looking for, and at worst buyers will click your ad out of curiosity before resuming their search, costing you a click that had no chance of resulting in a sale.
So how can you ensure that you're using targeted keywords in your campaigns? Spend as much time as necessary doing your keyword research. Utilize third-party keyword research tools to help you get started, but once you've got a campaign or two under your belt, you'll be able to easily see what works and what doesn't. Keywords that don't result in sales and only cost you clicks should be omitted and replaced with keywords that do based on your keyword research.
Research Your Competitors
Armed with your keywords, it's time to take a look at the competition. This is as simple as plugging your keywords into Etsy's search and seeing what comes up. Start by taking a look at the top performing organic listings, as they are the listings that have made it to the top without the use of PPC. Next, take a look at your competition, those listings that show up with the text "Ad by Etsy Seller" under the title.
Make note of all the things that make these competing listings successful – the product images, the title, the description, buyer feedback, and more – and use these as guidelines for improvement. Additionally, see if there is anything that your competitors might have missed, and leverage it to your advantage. Do they omit product videos, for example? Enrich your competing listing with an eye-catching product demonstration video and stand out from the crowd, both in the eyes of buyers and in the eyes of Etsy's algorithm.
Analyze and Monitor Your Ads' Performance
Successful Etsy Ads campaigns require monitoring and regular performance analysis that enable you to optimize them for better performance. You can monitor your ads' performance in two ways: through the Etsy Ads dashboard and through the Etsy Search. Each one will give you different yet equally valuable stats to help you better understand your Etsy Ads and to see what's working and what's not.
We'll start by taking a look at the Etsy Ads dashboard. You can get to your Etsy Ads dashboard by clicking on Marketing in the left-hand navigation pane of your shop manager, then clicking on Etsy Ads. Here, you'll be able to select a date range to see stats for that period. The advertising dashboard on Etsy will show you several important stats:
- Views. More commonly known as impressions, this is the number of times buyers have seen your ad without interacting with it. You are not charged for impressions, only for clicks.
- Clicks. The number of clicks your promoted listings have received. This is how Etsy charges you for advertising.
- Orders. How many of your orders from the selected range can be attributed to ads. Etsy attributes an order to ads if it occurs within 30 days of a buyer clicking on one of your ads. Remember that you are charged only for clicks on your ads, not for how many orders have resulted from them.
- Revenue. The total revenue from orders attributed to ads.
- Spend. How much you've spent on ads during the selected period.
* Tip: Divide your sales by the number of clicks to find out the overall average conversion rates of your ads. The average conversion rate for Etsy PPC is between 1-5%.
The second place you should be looking for valuable insights into your Etsy ads' performance is Etsy Search. You can find it by navigating to Stats, Etsy Search, and clicking on Advertising at the top. This section shows you valuable information about where your ad traffic came from, including your most visited Etsy listings and a breakdown of the search terms (keywords) that buyers used when they were shown your ads. This information helps you understand which listings perform best in ads, as well as which search terms bring you the most ad traffic.
If you want to learn more about Etsy Ads stats, check out Etsy's seller guide for reviewing the performance of your ads.
Test Different Types of Listings to Promote with Ads
Most Etsy shops will have some variety in their listings, even if they focus on a certain niche. You may be selling different types of jewelry, several kinds of leather goods, or items at different price points. However you break down your Etsy listings, you'll want to give each one a shot at Etsy Ads to see which types of listings can benefit from PPC promotion. You may find that it doesn't make sense to promote listings at a certain price point because it eats into your profit margins, while promoting listings with better profit margins does wonders for your bottom line.
One thing to keep in mind is that in some cases, even sales when you break even after accounting for ad spend can be valuable. More sales encourage Etsy to rank your non-promoted listings higher in organic searches, bring in more buyer feedback, establish your brand, and much more, creating a positive feedback loop that drives sales. If you can afford it, don't immediately discount running ads that break even, as they may be worth it in indirect ways.
Advertising on Etsy: Final Thoughts & Key Takeaways
With so many factors in play, running a PPC ad campaign on Etsy can seem overwhelming. But it's important to remember that ultimately, you're in precise control of your daily ad spend maximum, and that ads can always be tweaked and improved for more optimal performance.
When you first start running Etsy Ads, it's important to start relatively small and to remember to be patient. Launch your campaign and run your ads for a minimum of two weeks (but ideally 30 days) before making any changes. Remember that you can always turn off Etsy Ads if you feel like they're not working for your Etsy shop or not helping you attain your goals as a seller. Ultimately, when done right, nearly every shop on Etsy can benefit from Etsy Ads both in the long and short term.
To benefit the most from Etsy Ads, you'll want to do your research so you can start your Etsy PPC journey with a well-researched campaign plan and clear campaign objectives, and optimize your ads as you learn more about your ads' performance and your advertising niche.
FAQs About Etsy Ads
Still have some lingering questions about Etsy Ads? Check out these frequently asked questions to find out everything you wanted to know but never knew to ask about Etsy Ads!
Q: How do I set up an Etsy Ads account?
You don't need to set up an Etsy Ads account, since all Etsy sellers become automatically eligible to enroll their listings in Etsy Ads provided their account is at least 15 days old. To launch Etsy Ads, simply go to the Marketing section in your Etsy Shop Manager, and select which listings you'd like to enroll in Etsy's PPC Ads.
Q: How do I turn off Etsy Ads?
To cancel Etsy Ads, simply log into your Etsy account and open shop manager. From there, go to the Marketing section in the left-hand navigation pane, and click "Etsy Ads." If you scroll to the bottom part of the page, you'll see a button that says "Pause Etsy Ads." This enables you to pause your current campaigns without completely deleting them.
To remove a specific listing or listings from a campaign, go to your Etsy Ads dashboard and click "Manage Listings." Here, you'll be able to find the listings you wish to unenroll, and toggle the on/off button in the Ads section.
Q: What types of ads are available on Etsy?
Etsy offers two types of ads: commission-based offsite ads and PPC-based onsite ads.
All sellers are automatically enrolled in the former, and pay a commission of either 12% or 15% (depending on their shop's revenue for the preceding year) for every sale made through an ad.
To enroll in PPC ads, Etsy sellers must activate Etsy Ads and enroll their listings via the Shop Manager in their Etsy selling account.
Q: How much should I spend on Etsy Ads?
If you're just starting out, a good maximum for daily ad spend on Etsy Ads is around $5, with an average bid of 20¢ to 50¢ per click. Note that these numbers will be highly dependent on the specifics of your Etsy shop: your profit margins, your advertising budget, the items you sell, your conversion rate, and more.
Q: What factors affect my ad performance?
How well your Etsy ads perform is most affected by two factors: the quality score Etsy assigns to your listings and the advertising budget you've allocated.
Your listings' quality score is Etsy's assessment of the quality of your listing. This score is not made public to sellers, but is a major factor in determining where and if your listings are shown in ad slots. A listing's quality is determined by the natural use of keywords in the description and title, use of tags, use of images and videos, and more.
How high your bids are – and how high your daily maximum advertising budget is – will also have an impact on how well your Etsy ads perform. Put in too low of a bid, and your listings won't be selected to appear in ad slots; cap your daily budget too low, and your ads will not be shown often enough to make an impact.