Are Etsy Ads Worth It? The Ultimate Guide To Etsy Ads

are etsy ads worth it
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Are Etsy ads worth it?

If you’ve ever asked this question, you’ve come to the right place.

I created this guide to discuss everything you need to know about Etsy ads. I’ll give you valuable information to help you decide whether Etsy ads are for you and how to maximize them.

Let’s begin.

Are Etsy Ads Worth It?

are etsy ads worth it

Looking for ways to boost your profits as an Etsy seller is normal.

There are many ways to promote your Etsy shop, but Etsy ads are proven effective for increasing profit if you do it right.

Paying for online ads isn’t a new practice among Etsy sellers. Sellers often pay for advertisements on various platforms:

  • Facebook
  • Google
  • Instagram
  • Twitter
  • LinkedIn
  • TikTok

One study shows that 65% of small to mid-sized businesses have a pay-per-click ads campaign.

You’re not alone if you’re planning to run Etsy ads.

As an Etsy seller, you can run two types of ads: 1) Onsite ads and 2) offsite ads. I will discuss both.

Onsite Ads

Onsite ads promote your shop and listings on the Etsy website and mobile app.

Etsy also displays your listings prominently on shoppers’ Etsy search results. The platform displays your listings based on search quality and listing relevance—among other factors.

You can tell a listing’s an ad by the “Ad by [ShopName]” tag at the bottom of the listing.

Etsy sellers pay for onsite ads to reach shoppers already browsing on Etsy.

Offsite Ads

Offsite ads are listing ads outside the Etsy website or platform. Etsy takes a listing and promotes it on other media, like Google, Facebook, Instagram, or other major news sites and blogs.

The question is: are Etsy offsite ads worth it?

Well, there are some things to consider.

Offsite ads are fantastic for reaching people outside Etsy’s ecosystem. However, people may ignore your ad if they don’t shop on Etsy in the first place.

Furthermore, you have little control over where your offsite ads appear.

Running offsite ads is risky, but it’s an excellent way of promoting your Etsy shop to people outside the platform.

How Much Do Etsy Ads Cost?

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You need to consider costs if you plan on running Etsy ads.

Enter: cost per click.

Cost per click (CPC) is a necessary term to know when running any online ad campaign.

Cost per click measures the amount you spend every time a customer clicks on your ad. It determines how much profit you get on your Etsy ads campaign.

Generally speaking, Etsy charges anywhere between $0.20 to $0.50 per ad click. The cost isn’t too bad when you compare it to other platforms.

Here’s how Etsy advertising costs compare to paid advertising on other platforms.

  • Google – $2 to $4
  • Facebook –  $0.42 to $3.89
  • Instagram  – $0.40 to $0.70
  • TikTok – $1 or less (depends on the campaign)

Running ads for your Etsy store can be economical if you play your cards right. How much your Etsy ads cost will also depend on the following:

  • How compelling are your ads
  • The volume of your target keywords
  • Consumer and shopper behaviors over time
  • External factors you can’t control

When You Should Advertise Etsy Listings

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The value of Etsy-promoted listings depends on how you use them.

Here are ideal instances for running Etsy advertising campaigns.

When You’re Building a Marketing Funnel

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Are Etsy-promoted listings worth it for marketing funnels? Yes, they can be great tools for marketing funnel development.

It’s understandable to want immediate sales. However, you must cultivate your market before urging them to buy.

You must guide people through the four phases of their customer journey:

Awareness

This stage is when potential buyers learn about your Etsy shop or brand. Shoppers might not buy immediately, but they will have you in mind.

When running Etsy advertising campaigns, choose “reach new buyers” or “bring more traffic to my shop” as your goal when setting up your Etsy ads.

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Try getting them to sign up for your newsletter by adding an opt-in link to your Etsy store. You can put an easy-to-remember link on your Etsy shop banner or in your description.

Preference

People already have a bias toward your shop at this stage. Potential buyers will likely check your store and look at your products often.

Conversion

This stage is the part where you start making sales from your Etsy ads.

Loyalty

This phase is every Etsy seller’s dream.

You can get repeat sales from customers loyal to your brand or Etsy shop.

Consider using Etsy ads to build credibility if you’re still trying to develop your brand. Promoted listings can be an excellent long-term investment if you prioritize the customer journey.

When You Have a Favourable ROAS

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Return on ad spend (ROAS) is another term you should know. This metric is the profit you earn from running ad campaigns for your Etsy listings.

Your ROAS is the ratio of total revenue earned from your ads and your advertising budget.

For example, a 4.2 ROAS means you get $4.20 back for every ad dollar spent.

The Etsy ads system measures your profit from Etsy-promoted listings. You can quickly determine how much Etsy ads cost and whether they work to your advantage. Make changes or stop advertising when a listing starts losing money. It’s not worth paying for ads that don’t have positive ROAS.

The goal of advertising should always be to get more sales. Your ROAS should always be positive.

Measure your ROAS as often as possible. There’s no magic number to ROAS, but a high number should always be the goal. You should ideally make at least $2 for every ad dollar spent.

When You Have Disposable Ad Budget

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Etsy sellers should never spend money they don’t have. Don’t be tempted to pour money into ads when you don’t have the budget. Avoid paying for ads when you can’t afford them.

Learn how to taper your risks and be more prudent about how you spend your money.

When you’ve made a decent profit, pour some money into ads. Feel free to increase your daily budget once you see the effectiveness of your ads.

4 Tips to Optimize Your Etsy Ads

Do Etsy ads work for all Etsy sellers? They do if you optimize your ads.

Follow these four tips to maximize your daily budget.

1. Try Organic Marketing.

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There’s beauty in getting sales without paying for a listing ad. Try getting some organic sales before running an ad.

You can try these organic marketing ideas.

Perform Etsy SEO on Your Product Listings

Optimizing your shop for Etsy SEO can increase your visibility on organic search results.

Etsy changed its algorithm in May 2022. Optimizing for Etsy SEO can take time and effort, especially if you’re not well-versed in SEO.

The important thing is to do keyword research and find relevant keywords to increase your visibility on Etsy search results. Using keyword research tools can be a big help here.

Promote Your Products on Social Media

Post organic content to showcase your products on platforms like Facebook, Pinterest, Instagram, and other social media platforms.

Create a Blog Page

People like reading online content. Creating a blog page is an excellent way to appear on Google results.

Start a Newsletter

A newsletter allows you to communicate with leads and existing customers through email. You can inform subscribers about new products, upcoming sales, and other promotions.

Don’t stop promoting your shop using your most effective organic strategy, especially when you get significant organic sales.

The path to Etsy success is combining organic marketing strategies with onsite and offsite ads.

2. Put More Ads on Your Best-Selling Listings.

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Maximize your daily budget by being as deliberate as possible with your ad placement. Measure the sales and ROAS of each ad and increase resources for those with the best results.

Visit your shop manager often and take note of your ad budget. Keep them on a spreadsheet, or anywhere you can measure and record your performance.

When you start advertising and run ads on Etsy, some will naturally perform better than others. You can boost sales by spending more on higher-performing ads.

The maximum daily budget for Etsy ads is $25. You can transfer the daily budget from low or non-performing ads to high-performing ones.

3. Promote New Listings Frequently.

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Freshness matters when running ads. Etsy ads decay over time as more people see your promoted listings. As such, shop owners like you should always advertise new listings.

4. Optimize Your Image and Title

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Give advertised listings a facelift by changing the images or titles when running onsite ads.

A high return on your ad spend depends on how well you optimize your promoted listing’s image and title. Ensure your listing attracts people to visit your shop.

If an ad isn’t working, you might get better results by creating a more enticing graphic or title. Encourage shopper clicks by adding keywords like “great deal!” or “free shipping” on your title or image.

Stop promoting ads you’ve tried to optimize several times but still haven’t seen results. A part of any advertising strategy is knowing when to stop running specific Etsy ads.

Frequently Asked Questions (FAQs)

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“Are Etsy ads worth it?” isn’t the only question sellers ask.

Here are questions most sellers ask regarding running Etsy ads.

Will I Make More Money with Etsy Ads?

You aren’t guaranteed profit when running Etsy ads.

Your yield will depend on other factors, including your products, marketing strategy, advertising budget, target market, and more.

The success of your paid advertising depends on how people respond to your ad.

How Much Money Should I Spend on Etsy Ads?

You can spend a maximum of $25 daily on Etsy advertising. You can split your maximum budget among your ads however you like.

However, consider your cost per click and ROAS. Pour money into Etsy ads that attract potential customers and drive sales to your shop.

How Do I Cancel My Etsy Ads?

You can head to your ads manager to cancel your Etsy advertising campaigns.

Here’s a step-by-step guide.

  • Visit your Etsy.com Shop Manager.
  • Head over to the Marketing tab.
  • Choose Etsy Ads.
  • Under Show more orders, select the Pause your ads tab.
  • Click on Turn off ads.

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What is Etsy Plus?

You may have seen the name Etsy Plus at one point.

Etsy Plus is a premium service that provides you with various perks. With Etsy Plus, you can get the following:

  • Advertising credits for 15 listings worth $5
  • Access to custom web address discounts
  • Restock requests
  • Advanced customization on your shop’s profile design
  • Discounts and perks from Etsy.

You can subscribe to Etsy Plus costs $10 monthly, and have the money taken out of your Etsy Payments account.

The Bottom Line

Do Etsy ads work? Are Etsy ads worth it?

The answers depend on how you use Etsy ads because results can go either way. You could lose money or earn revenue from Etsy ads.

Position yourself for success by considering costs and experimenting with Etsy advertising strategies. You can achieve results, whether it’s customer awareness, improved sales, or repeat purchases.

Don’t be afraid to try different campaigns and tweak strategies depending on the results.

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