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Etsy ads: What, how, and why? – The complete beginner’s guide

Are Etsy ads worth it? If you are a complete beginner in Etsy, you might be having trouble running onsite and offsite Etsy ads, this complete Etsy advertising beginner’s guide is for you!

Fewer people were going to physical stores and began switching to online shopping simply because it’s more convenient and almost anything can be found online. 

Do you need personalized items for an event? – find it online. 

Do you want to grab food? – order online. 

Do you want to start a DIY project? – get it online. 

What’s more, you can always find items online that are unavailable or sold in your local area, and the best thing is you can have them delivered to your doorstep.  

Shoppers opt to buy products that appear on top of search results, compared to products on the second page, and so on, because most of the shoppers don’t have time to search the entire search results to find what they need. 

So to increase your sales, your products have to make it to the top of search results to better showcase them and make your customers buy your product even more. 

To help you make your product rank at the top of search pages and gain maximum visibility on Etsy and Google search results, running Etsy advertisements is the answer. 

Table of contents

Etsy Ads Definition

Etsy advertising is the main way to promote an Etsy shop and to make your product visible in the online marketplace platform. 

The Etsy advertisement are similar to other types of advertising and run on a PPC (Pay Per Click) model. This means that you pay Etsy a small amount and will only be charged when someone clicks on your ad. However, you will not be charged when a customer only views your ads as long as no clicks happened. 

The reason for running Etsy ads

Etsy is growing rapidly over the last few years, with over 50 million people visiting Etsy every month, making it a great platform for promoting your brand and products. 

If you are considering taking advantage of the rapid growth of Etsy, we also suggest you consider advertising your product on the online platform. There are several reasons why you should do so:

Improved brand awareness

With over 50 million visiting Etsy, likely, many are already familiar with it even if they’ve never shopped there and if you choose to advertise your business on Etsy, many will know more about your brand even before they ever come across it in search results. 

Lower cost per click

Etsy ads clicks costs are generally lower than Google Ads, Facebook ads, and other online advertising platforms. 

You also don’t need to spend a lot of money to get results from your campaigns, and most sellers can expect a return within one month of launching their advertisement. 

Less competitive environment

It’s also proven that Etsy sellers who advertise their products on the platform received more sales than those who don’t, also they received more click-through rates and higher conversion rates than those who advertise on other online platforms. 

Advertising on other online platforms such as Google Ads means you are competing in a higher competition of traffic compared to advertising on Etsy, and lesser competition means better advertising results. 

In this video, Hannah Gardner shares her story on why she runs her Etsy ads and what to expect when you first start running ads for the first time.

How do Etsy ads work?

Once you have your own store and start selling on Etsy, you might find it hard to gain an impression on your store at first. To have more store visits, and increase your sales, advertising your product might help you with it.

Etsy ads work by featuring a product to a customer who is not visiting your shop. And if that same customer sees the promoted product and clicks through it to purchase it, the Etsy seller of the product will pay a small percentage of that price. 

Your Etsy ad will appear on the top or near it if it has enough impressions and clicks, and if it doesn’t meet these criteria, your ad will not appear on the search pages.

Where do Etsy ads show up?

Your advertisements appear in these locations: 

  • User Search Results
  • Search Relevancy (Compliance with Etsy’s Advertising Policies)
  • Listing Quality
  • Money spent to promote the listing (Bidding basis)

Etsy ads cost

The daily budget for advertising on Etsy ranges from $1-$25, that is for the entire duration of the day. 

However, Etsy charges from $0.20 – $0.50 per ad click, but you can adjust your bid to decide how much to pay per ad to win an ad bid and make your ad appear on the entire Etsy platform and Google search pages. 

You could pay $0.05 or $0.10 per ad click, it’s entirely up to you and your shop budget. Take note that Etsy ads are a bidding system and a seller who is willing to pay more or bid higher than you will make their products more likely to be seen and place an advertisement in the search results. 

In this video, Alissa Rose takes you behind the scenes of her brand-new Etsy shop and her Etsy Ad Stats to show us if they are profitable, if they’re worth it, how to fix some of the common mistakes when it comes to using Etsy ads and her current strategy after a whole month of ads.

Setting up your Etsy ads

Here is the guide on how to set up Etsy advertisement for beginners. 

Step 1: Click on “Shop Manager”

On Etsy.com, start by clicking on “Shop Manager” in the upper right corner right beside the “your account” button.

Step 2: Click on “Marketing”

Once on your shop manager dashboard, look for the “Marketing” button on the left part of your screen. 

Step 3: Click on “Etsy Ads”

After clicking your “Marketing”, proceed with “Etsy Ads”. 

Step 4: Manage your Budget

After clicking the “Etsy Ads” button, proceed with the “Manage your Budget” button beside your “Manage advertised listings”.

Step 5: Set your daily budget

Now it’s time to set your expected daily budget, as for me, I set mine at $5 per day, you can choose a different amount if you wish, after setting up your daily budget.

After setting up your daily budget, click on “Save changes” and you are good to go!

Adjusting your Etsy ads

When starting an Etsy advertising campaign, all your current listings are advertised, and you can always choose to edit or update which listings you want to advertise. 

Onsite ads

There are only a few things you can control, like turning on or off an ad, updating your daily budget, or choosing which listings you want to promote. 

To start or stop an advertising listing: 

  1. On your shop dashboard, go to Marketing, then Etsy ads, and go to Manage advertising listing.
  1. Find the listing you want to start or stop advertising.
  1. Select the button under on/off to include or remove a listing on your ads campaign. 
  1. Check on the box on which listings you want to include in your Etsy advertising campaign, and uncheck which listings you wish to remove. 
  1. Click update

You can also change your daily budget on how much you want to spend per day on advertising. 

To change your Daily Budget

  1. On your shop dashboard, go to Marketing, then Etsy ads, and go to Manage your budget.
  1. Enter the daily new budget you want 
  1. Click Update.

With offsite ads, you have less control, and you will not be able to change the listings to promote or budget. If you make less than $10,000 annually, then we suggest you stay out of it. 

However, with offsite ads, you can adjust which countries to show your ads to, just go to “Shipping profiles” under “Settings” on your dashboard and choose which countries you want to be added or removed. 

Offsite ads

Etsy sellers can’t opt out of Etsy offsite ads program if they have sales above $10,000, but before reaching that, you can turn it off and stop advertising offsite ads. 

To turn it off:

  1. Head to Shop Manager.  
  1. Click on Setttings, then Offsite ads
  1. Click on Stop promoting my products

Tips to take your Etsy ads to a whole new level

As a beginner, running Etsy minds can be hard, confusing, and challenging, yet, it’s not impossible to deal with, and there are a few things that can take your Etsy advertising to a whole new level. 

Use SEO optimization

Whenever creating an Etsy ads campaign, make sure to focus on SEO, using long-tail keywords as much as possible because long-tail keywords are a collection of terms/words people search when they have a more specific or general question in mind. 

This makes your product more discoverable and desirable to customers looking for what you are selling. 

It’s not hard to find high-performing keywords that can help you target your advertisement to the right customers with the right keyword tool for Etsy, take eRank for example. 

Frequent measure and adjust spending

In managing your Etsy ads campaign, most of your time will be used looking at your listings and finding ways to improve them. 

So, don’t forget about your advertising budget and keep an on your advertising campaign, and make adjustments according to your advertisement performance. 

If a listing is not generating any clicks, you can adjust and decrease the amount you pay for that specific listing, if it’s not converting well enough, try refining your keywords. 

The more data you have on what works and what doesn’t as time goes on, the better you will be able to refine your advertising campaign.

Use high-quality images

Etsy has two types of promoted listings, namely text advertisement and product galleries.  

Text ads don’t include photos or visuals, so you have more freedom in how to use them and where they appear on a search page. 

While product galleries are used only to promote specific products, they contain images and allow visitors to click directly to your product page. 

They might sound way cooler than text ads, but they are also more expensive. However, they have the greater power to drive more sales as long as you include high-quality images of your product. 

Etsy also recommends keeping the size of images at about 4MB each, this is to ensure a good user experience and won’t take much of their time loading these images. 

Learn from your ads and competitors

Once your campaign is live, it needs constant monitoring and optimization. 

On the first day of your Etsy ads, you want for it to be seen by shoppers, take note that most of them only spend 8 seconds on your listing before deciding whether to click on your ad and buy or not, so closely monitor your Etsy ads performance. 

If your listing is generating clicks but no sales, it’s time to look at how your product description performs against other listings in your category. 

And don’t forget to take a look at your competitor’s ads, if they have a strong ad, find out why it’s working and adapt it, if their ads are not doing well, learn from their mistakes so you don’t make the same mistake.  

Split testing

Testing different advertisement variations will give you real-time insight into which ads are performing well. This can help track errors to eliminate them and know what works and what doesn’t. 

For example, if you run 5 Etsy advertisement for a specific listing, 3 of them underperformed, and the two have performed well, you can then replicate the high-performing Etsy advertisement and replace the underperforming Etsy advertisement to keep your sales going.

Promote Seasonal Listing

To make your product sell during a specific season, create a seasonal listing. Seasonal listings give buyers an idea of when they can expect a specific item. 

This also helps with their decision on buying your product because they will know when they will receive it. 

In this video, Sumner and Ali Hobart share their simple & PROVEN Etsy Ads for beginners tutorial.

Etsy ads FAQs

Are Etsy ads worth it?

It depends. If you don’t know what you are doing, then there is a big chance that you will lose a lot of money. 

If you know who your audience is, and you target the right audience with the right products, Etsy ads are worth it. And to make your Etsy ads worth it, optimizing your SEO might be a good choice, and to help you with your keywords and SEO, we have a separate article that talks about the eRank tool. 

How long does it take for Etsy ads to work?

It depends on the business and industry. Some sellers see a return in just days after placing an ad, others take weeks or even months. 

Our advice is that as long as you keep track of your results and keep on learning from your ads, and competitors’ mistakes and adapting them, the consistent effort will generally pay off. 

However, once you have a solid active audience on Etsy, it will be sooner to see a return because it will be easier for your buyers to see what you are advertising and make them buy from you.

How much should I spend on Etsy ads?

We recommend about $3-$10 per day for a week to gather data and for you to experiment and know which of your listings work and which don’t. 

In general, you must set a budget so that you are profitable with your sales and do not spend too much as an inexperienced seller. 

How to cancel Etsy ads?

To cancel Etsy onsite ads, shop dashboard, go to marketing, then click Etsy ads, and click other options to turn off Etsy ads. 

For Etsy offsite ads, you have to be making lower than $10,000 a year to cancel. If you do, go to settings, then offsite ads, and click on stop promoting my products. 

My thoughts on Etsy ads

I can personally testify Etsy ads are one of the best ways to reach potential buyers and increase your sales. This can help you succeed even if you are new and starting with your listings. 

I can say Etsy ads need constant monitoring and optimization for the first few runs, but once you have a solid audience, it will be an easy and smooth ride. Even a beginner can start his or her own Etsy advertisement as long as you know the audience, know who to target with the right product, a combination of the right SEO tactics, and persistence. You are on the right track to success!

Remember, growing a business takes time, but it’s more fun if you have a community that always has your back isn’t it? 

At Jadeshoot, we are not just a community for Etsy sellers like you, we are a family, and just like every family, we are always ready to have you supported on your Etsy business. 
Join Jadeshoot today!