I Thought Etsy Ads Were Complex, Until I Found This…
Expensive Lessons From My 250 Listings
Today I want to share some insights about optimizing Etsy Ads that I’ve learned during my time selling on this platform.
Before diving into details, I’d like to share a few personal perspectives about Etsy Ads:
First, Ads are an extremely crucial part of Etsy.
However, Etsy doesn’t allow sellers much control over ad adjustments.
While this might sound like a limitation, it’s actually an advantage — especially for newcomers like me, as we don’t have to deal with complicated settings.
Second, after testing various optimization methods, I’ve realized that diving too deep into title editing, keywords, or constantly toggling ads often consumes a lot of time without clear results.
This is particularly true for teams managing multiple shops and listings.
Third, the determining factors for a successful listing still come down to the product itself, images, and pricing.
If these elements are good, Etsy will automatically distribute more traffic.
So how do we optimize Ads simply yet effectively? I follow a 3-step process:
Step 1: Set a Fixed Ads Budget
- The first crucial step is knowing how much you’re willing to spend daily on Ads
- For new shops, I recommend enabling ads for all listings
- For established shops, maintain ads and adjust budgets according to strategy
Step 2: Monitor ROAS
- ROAS (Return on Advertising Spend) is the revenue-to-ad-spend ratio
- This is the most important metric I use to evaluate ad performance
- Ideal ROAS depends on your product and shop strategy
- New shops might accept lower ROAS to build traffic
Step 3: Data-Based Optimization
- After 1–2 months of running ads, you’ll have enough data to optimize
- Keep ads running for listings with good ROAS and acceptable ad spend
- Turn off ads for listings with high spend but low ROAS
- Regular review to adjust strategy as needed
Real Example from My Shop:
- Target ROAS: 2
- Maximum ad spend per listing: $25
- Shop has 250 listings, ads enabled for 50 listings
- Daily budget: $50
- Weekly review, sorting listings by spend
- Keep listings with ROAS > 2 and/or spend < $25
- Turn off ads for listings with spend > $25 and ROAS < 2
This approach ensures our ads are allocated to listings that not only engage well but also generate steady revenue.
Simple but effective
These are insights from my perspective and experience.
I hope they’ll be helpful for those selling on Etsy.
If you have any great strategies, don’t hesitate to share them in the comments!
About the author
I am John, selling products on Etsy, and I am also a writer.
I hope that my sharing can inspire you to have more motivation in your work.
My shares have achieved a high reading rate, so I can say that the experiences I share can definitely help you achieve similar results
Success comes from both big achievements and small contributions!
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