Are Etsy Ads Worth It [Case Studies with Data]

If you’re an Etsy seller, you’ve probably heard that advertising on the platform can be a great way to reach more customers. But are Etsy ads worth it? Let’s take a look at several case studies and explore what is working, and not working for Etsy sellers. Stay tuned – it’s going to be helpful information!

Are Etsy Ads Worth It?

Etsy ads are worth it for high-profit items provided they are tagged correctly, and you use the analytics to run additional ads on top-selling, high-profit items.

What are Etsy Ads?

Etsy Ads are a way for you to promote your products on Etsy. When you create an ad, you can choose which products you want to promote and how much you want to spend. Etsy will then show your ad to people who are searching for things like what you’re selling.

Advertising on Etsy is a great way to reach more potential customers and increase your sales. But is it worth it? Let’s take a look at some case studies to find out.

Etsy Insights Make Ads Worth It

Case Study 1: Indy

Indy from doodlesbyindy.etsy.com sells stickers, pins, and keychains. She tried advertising $1.00 per day on Etsy for 30 days. In her video on Youtube, she shared her results from this case study.

Before starting ads on Etsy, Indy read up on the subject through Reddit and Etsy forums. While she found mixed reviews about whether or not advertising on Etsy is worth it, she decided to give it a try for herself.

Based on Etsy’s advice, Indy ran her Etsy ad campaign without touching it for the entire month. The ROAS (return on ad spend) is best tracked after a 30-day period.

After just a few days, Indy got her first order.

She was also happy to report that her views and favorites doubled the month she ran ads over the previous month, where she did not. However, after the 30-days ended, Indy did not make more sales that month than she did the month prior, without ads.

The experiment was not a failure, however, because Indy was able to gather valuable data that she wouldn’t have without running the ads.

For example, she was able to see what products were being clicked on the most and which ones weren’t selling well. She also learned which of her products were the most popular, and the most profitable.

All of this information will help her make better decisions about what products to sell, what price points to use, and how to better market her products in the future.

So, while Indy didn’t see an immediate increase in sales from running Etsy ads, she did gain valuable insights that will help her business in the long run.

Indy believes Etsy ads are worth it for some, and not for others.

Let the Ads Run For 30 Days

Case Study 2 – Heather

Heather took an Etsy ad challenge that encouraged the advertiser to spend $5.00 per day on ads for 30-days. Her $5.00 per day was promoting a total of 108 listings from her Etsy store.

She didn’t monitor the results throughout the campaign, because she wanted to allow it to run without interruption.

At the end of the 30 days, Heather checked her results.

She was surprised to find that she had made 14 sales with total revenue of $507.19. She had 377 ad clicks in total with a 3.7% conversion rate.

5 of the 14 sales bought a different product than what they originally clicked on.

One of the 14 sales included multiple items, whereas the others were single-item purchases.

Another interesting discovery was that Heather had no sales during 15 of the 30 days. In fact, it took 8 days and $40 worth of ad spend before she got her first sale. If she had been watching the campaign, she likely would have ended it.

This is one reason why it’s good to let your campaign run for 30 days before determining whether or not it’s successful. Most of the sales occurred during the 2nd half of the Etsy ads campaign.

Heather mentions that one benefit of running ads is the analytics that come from the ad spend. You can learn which products made the most money from the ad, and therefore can run campaigns strictly to those products.

For Heather, Etsy ads were worth it, although she didn’t make much in the way of profits.

Etsy Ads and Tags

Case Study 3: Ryan Hogue

Ryan is comfortable with Amazon ad targeting but feels that Etsy doesn’t provide enough targeting methods. He spent $500 on an Etsy campaign that generated 27 orders from 250,000 impressions. There were 1026 clicks. He optimizes his listings, and thumbnails, and was surprised his click-through rate was so low.

He feels that Etsy doesn’t use keywords well with forced auto campaigns. Therefore, his ads are being shown in places where the customer wouldn’t be interested in his products.

His suggestion is to target specific products with fewer, very specific tags.

Ryan believes Etsy ads aren’t worth it due to the lack of appropriate ad placements.

Etsy Ad Tips

Now that we’ve looked at 3 case studies of real businesses that have used Etsy ads, let’s take a look at some general tips to help you create a successful campaign.

1. Understand What You’re Paying For

Etsy ad prices can be confusing. When you create an ad, you’ll see two different prices – your max bid and your ad rate.

Your max bid is the most you’re willing to pay per click. Etsy will use this number to determine whether or not to show your ad.

The ad rate is the amount you actually end up paying per click. This number is determined by a few factors, including your max bid, the quality of your ad, and how relevant it is to the customer.

You can read more about Etsy ad pricing here.

2. Target Your Products

Etsy offers 3 different types of ad placements – search ads, browse ads, and off-site ads.

Search ads are the most common, and are shown when a customer searches for a specific keyword on Etsy.

Browse ads are shown to customers as they’re browsing through Etsy. These can be effective if you have products that are well-suited to gift-giving or seasonal trends.

Off-site ads are shown to customers who visit Etsy but leave the site without making a purchase. These ads follow customers as they browse the internet, and can be very effective in reminding someone of an item they were interested in.

3. Choose The Right Keywords

Your keywords are what determine whether or not your ad is shown to a customer. These should be chosen carefully, based on what you think customers will search for when looking for your products.

Etsy offers some suggestions for keywords, but these may not always be the most relevant to your product. You can also use keyword research tools like Google AdWords Keyword Planner or Moz Keyword Explorer to find related keywords.

4. Set A Reasonable Budget

Etsy ads can be expensive, especially if you’re targeting a popular keyword. It’s important to set a budget that you’re comfortable with and to monitor your campaign closely to make sure you’re not spending more than you can afford.

A good general rule is to start with a budget of $5-10 per day. You can increase this as you see results from your ads.

5. Monitor Your Campaigns Closely

Etsy ads can be effective, but they’re not always perfect. It’s important to monitor your campaigns closely and to make changes as needed.

Pay attention to your click-through rate, conversion rate, and cost per click. If you’re not happy with the results you’re seeing, try changing your keywords, ad copy, or targeting options.

It’s best to start with a 30-day campaign and a lower budget so you can learn how a longer campaign works.

6. Use Promotions sparingly

Etsy promotions can be a great way to increase traffic to your shop, but they should be used sparingly. If you use them too often, customers may start to expect discounts and sales, which can devalue your products.

Promotions can also be a great way to test the effectiveness of an Etsy ad campaign. Try running a promotion for a specific product or collection and see how it affects your traffic and sales.