The question has been asked many times here: are Etsy ads worth it?
Let’s face it: competition is getting stiff, and economic data says that the fight for customer attention is only going to get fiercer. So, It’s time to examine the importance and effectiveness of Etsy ads.
But how much do they cost? How much should you invest to test the waters? If you’ve pondered these questions while running your Etsy shop, you’re not alone.
In this blog we’ll dive into the world of paid advertising on Etsy.
Understanding Etsy Ads
Etsy ads, formerly known as “promoted listings”, are among the most direct ways to promote your Etsy shop. There are two categories of Etsy ads: Onsite and Offsite. In this section, we’ll break down their costs, customization options, and placement.
Where Do Etsy Ads Appear?
Onsite Ads: Etsy onsite ads primarily appear among the organic search results on Etsy.com. Simply perform a search on Etsy, and you’ll notice some listings labeled as “Ads by [Seller].” These are paid advertisements. Onsite ads also feature on category pages and market pages on Etsy.
Offsite Ads: In contrast, offsite ads are listings promoted outside of Etsy. Etsy promotes these product listings on popular platforms like Google, Facebook, Instagram and more.
Customizing Your Ads
Onsite Ads: You can control onsite ads under ‘Marketing’ and ‘Etsy Ads’ in your Etsy dashboard. Your options are limited: you can turn ads on or off, adjust your budget, and select which listings to promote. It’s not mandatory, and you can start or stop onsite ads at any time.
Offsite Ads: Offsite ads offer less control. You cannot change the listings to promote or the budget. However, you can opt out if you earn less than $10,000 a year. Sellers making over $10,000 on Etsy over the last year cannot opt out of offsite ads. However, you can adjust the countries where your ads are shown, limiting them to the countries you ship to.
How Much Do Etsy Ads Cost?
Onsite Ads: You pay for an onsite Etsy ad when shoppers click on your listing ads (cost per click). It is not charged based on views or sales. In the past, sellers could bid on the price per click, but this changed after Etsy revamped its ad system. On average, most sellers pay around $0.20 to $0.50 per click for an Etsy ad.
Offsite Ads: Unlike onsite promoted listings, you only pay for offsite ads when a shopper buys your product after clicking. For every successful Etsy offsite ad (when a shopper clicks the ad and makes a purchase), Etsy charges a fee of 12-15%.
Sellers who make over $10,000 on Etsy for the last 12 months pay a 12% ad fee, while others pay 15%. This fee is in addition to the original transaction fee, listing fee, and Etsy Payment fee.
Are Etsy Ads Worth It?
Now that you’re better informed about Etsy ads, you’re probably wondering if they are worth the investment.
The answer? It depends.
In general, shops selling higher-priced items ($30+) have a better chance of success with Etsy ads. This is because ads on Etsy are charged the same way, regardless of the item’s price. For low-priced items, like a $5 digital download, the ad fee becomes a larger percentage of the cost. Also, a single high-priced sale could match or exceed the ad monies spent, whereas many multiples of smaller items sold would be neeed – but the effort and cost are the same.
Established shops also tend to fare better because of their higher conversion rates. They need fewer clicks before a shopper places an order, resulting in lower and more manageable ad fees.
Etsy ads can also be beneficial for items with competitive and difficult-to-rank keywords. Such listings may struggle to rank organically, making it a good idea to pay for ads to improve their visibility in Etsy search results.
For newer shops, investing in ads to gain visibility and accumulate positive reviews on Etsy quickly might be worthwhile.
In sum, Etsy ads are not one-size-fits-all. The most crucial step is to test them for your specific shop to determine their effectiveness.
How Quickly Do Etsy Ads Work?
Etsy ads work relatively quickly. The ads typically start appearing within a few hours, and it only takes a few days to maximize my ad budget and stabilize the number of clicks. Of course, this depends on how much you’re willing to spend.
How Much Should You Spend on Etsy Ads?
For most shops, a budget of $3-10 per day for a week will provide enough data and statistics to assess which of your listings perform well and which do not. Alternatively, you can start with a low budget of $1, but Etsy will take longer to optimize the clicks, and you won’t have substantial statistics until after a month. If you can play the long game and hold out for a month, it’s good to know that you can test the strategy for as little as a buck.
Should You Advertise More or Fewer Listings on Etsy?
In the beginning, it’s advisable to advertise most of your shop’s listings. If you need to choose only a handful of products to promote, consider visiting your ‘listings’ page and select those that have generated the most sales compared to other listings with a similar number of views or visits.
After testing these listings in Etsy ads, you can stop promoting the ones that haven’t generated any sales, especially if they consume a significant portion of your ad budget. This ongoing selection process should help you maximize the profitability of your ads.
How to Cancel Etsy Ads?
To cancel Etsy onsite ads, go to ‘Etsy ads’ under ‘marketing’ and click on other options to turn off ads. As for offsite ads, you can only turn them off if your shop earns less than $10,000 a year in sales. Go to ‘settings’ and ‘offsite ads,’ then click ‘stop promoting my products.’
Look at it this way: if you had your own ecommerce site on your own platform, you’d need to spend money to get the attention of even a single prospect. With Etsy, this is not a problem. organic search alone can bring customers to your store without spending a dime in ad money. And if you want to increase your sales from simple searches, the cost to expand is negligible compared to all other ad methods.
