Are Etsy Ads Really Worth It? (My Honest Opinion)
Hey friends, let’s chat about something that’s on the minds of many online sellers and Etsy entrepreneurs: Etsy ads.
If you’ve got an Etsy shop or you’re thinking of starting one, you’ve probably heard a lot about ads on Etsy – maybe even heard a bit too much.
Are Etsy ads really worth it? That’s the real question.
Everyone seems to have a different take, so today I’m diving in to share my two cents.
How Etsy Ads Work?
Etsy ads are pretty straightforward… well, sort of.
They appear among organic search results on Etsy.com.
The listings you see with the word “Ads by (Etsy shop name)” are the ones that sellers paid to promote.
And then there are offsite ads, where Etsy will promote your shop on multiple platofrms like Google, Pinterest, Facebook, and more sites!
How Much Does An Etsy Ad Cost?
Onsite Ads
Etsy charges for onsite ads per click, not per view or sale.
Back in the day, you could bid on that cost per click, but not anymore.
These days, most of us Etsy sellers pay around $0.20 to $0.50 per click.
Offsite Ads
Offsite ads are a bit different.
You only pay when someone clicks and buys your product after clicking.
So, sales = payment for ads. Etsy charges a 12% to 15% ad fee, which sits on top of all the other fees we’re used to.
Pros and Cons of Using Etsy Ads
Pros of etsy ads
- Increased Visibility: One of the primary advantages of Etsy ads is that your products gain increased visibility. When you’re featured more prominently on the platform, you’re more likely to catch the eyes of potential buyers browsing for that perfect find.
- Targeted Reach: Etsy’s algorithms aim to place your ads in front of users who are searching for items similar to yours. This means that your advertising dollars are being spent to reach a more relevant audience.
- No Upfront Costs for Offsite Ads: Since you only pay for offsite ads when you make a sale, it’s a low-risk investment.
Cons of etsy ads
- Costs Can Add Up: On the flip side, those clicks on onsite ads add up quickly and can eat into your margins if you don’t monitor and adjust your ad spend regularly.
- No Guarantee of Sales: More visibility does not always translate to more sales. You might get a lot of clicks (and pay for them), but there’s no guarantee those clicks will result in actual purchases.
- High Competition: Your ads are up against countless others. If you’re in a highly saturated category, it can be challenging to stand out, even with advertising.
My Personal Experience: Are Etsy Ads Really Worth it?
Through my own trial and error, I’ve figured out a bit of a formula.
Here it is: if you’re selling high-ticket items that outweigh your ad spend, Etsy ads could be your golden ticket.
On the other hand, let’s say you sell digital downloads on Etsy under $5.
If your products are on the cheaper end, Etsy ads might “eat” your budget and you might be spending more than you make.
I speak from personal experience.
Since all my Etsy stores sell digital products, I have experimented countless of times with Etsy ads.
What I’ve found is you have to pick a trendy niche, in which you can price your products higher than your daily ad spend.
That’s why I actually don’t use Etsy ads for my shops because most of my digital products are priced lower.
But in the beginning of your Etsy journey, I would suggest using Etsy ads. You don’t have to turn them on for a whole month.
Etsy suggestion: Turn on Etsy ads 2 weeks after you opened your Etsy shop and have at least 20 listings. What I would recommend is having a $5 daily budget for the next 7-14 days. If your ad spend is cutting into your profit, then turn the ads off. If you are actually profiting from Etsy ads, then continue. As an Etsy beginner, your goal is to collect data based on what products brought in the most clicks (CTRs) and orders!
I already make sales without Etsy ads, which is why (at the moment), I don’t necessarily need Etsy ads.
So, the bitter truth is this – it’s not a one-size-fits-all answer.
It really depends on what you sell, how much you price your items, and re-evaluating your data to see what works.
Tips for Maximizing Etsy Ads
Want to make the most of your ad spend? Here’s what’s helped me:
- Choose wisely: Stick to products that consistently sell well.
- Budget smartly: Don’t dump your whole wallet in; start with $3-$10 per day.
- Rotate ads: Keep tabs and tweak which listings you’re pumping money into.
Some Extra FAQ
How Much Should I Spend On Etsy Ads?
Ideally, I would suggest starting off with a budget of about $3-$5 daily for 7-14 days so you can gather enough data to know what works.
Don’t do this step right away if you just opened your Etsy shop. Wait 2 weeks and consistently publish new listings.
HOW TO USE ETSY ADS EFFECTIVELY
Start with promoting more listings.
Then, trim down to the high performers (look at your RPM and CTR and sprinkle in some new listings.
If you notice that you are spending ad money on listings that are not bringing any orders, turn those listing ads off.
How To Cancel Etsy Ads?
Scroll down to the bottom on the “Etsy Ads” page. You’ll see an option on the bottom right to “Pause Etsy Ads.”
You can always turn them back on whenever you are ready to!
How else can I increase sales?
- Choose profitable product ideas with the best chance of selling before creating them
- Master SEO and keyword research on Etsy
You need to be applying this tips before even running Etsy ads.
Want to take your Etsy shop to the next level?
Check out the Etsy Success Blueprint, which teaches you how to pick a winning niche, uncover profitable product ideas, and master keyword research on Etsy.
Want 40 free listings? Click this link to get 40 free listings for your Etsy shop.
Here are some awesome, free guides that will help you run a successful shop:
How to Open an Etsy Shop for Beginners (An Easy Simple Guide)
How Do I Find Low Competition and High Demand Niches On Etsy?
