The Beginner’s Guide to Etsy Advertising

The Beginner's Guide to Etsy Advertising

As the #ShopLocal movement is gaining more traction than ever, there have been a lot of new locally-grown, artisan, and small batch-type businesses. That being said, the best marketplace for these businesses is Etsy. 

While Etsy has been around since 1998, it has truly exploded in popularity over the past decade. In fact, in 2020, the platform had almost 4.4 million users, which is a massive jump from the mere 830,000 users in 2012. Moreover, Etsy reported $1.72 billion in revenue in 2020.

The reason why Etsy is so popular is that it acts as a one-stop-shop solution by offering a plethora of tools and services to its consumers. One such tool is Etsy Ads. While Etsy ads may not be ideal for every shop, you won’t know until you try them for yours. These ads might be able to help small or new businesses and products get more visibility and reach a larger consumer base through paid marketing. This article will help beginners get a better understanding of how they can make the most from this tool.   

How To Create Etsy Ad Campaigns

What is Etsy Advertising?

Similar to other types of paid advertising, Etsy ads run on a pay-per-click model. This essentially means that you pay a small pre-defined amount to Etsy every time someone clicks on your ad. It’s important to note that with this type of ad format you will only be charged when a consumer clicks on your ad, and won’t be charged for impressions, i.e., when a consumer views your ad. You can choose the cost-per-impression model too, but that’s usually not recommended for small businesses. 

Etsy Ads may appear in one or more locations, such as

  • User search results
  • Search relevancy (which includes compliance with Etsy’s policies)
  • Listing quality 
  • Money spent to promote the listing (or budgeted for bids)


On a side note, if you want to showcase your Etsy ad on other platforms, you’ll have to use Etsy offsite ads. 

Setting Up Your Etsy Ads

Setting up Your Etsy Ads

There are several strategies to carefully market your business. Consider who you’re attempting to reach before you begin. You need to be able to answer questions like, “to which demographic am I targeting my ads?” and “what type and placement of my ad will best resonate with my target audience?” 

The solution is to look at where your target group spends the most time online. Investigate their most popular social media outlets and keywords. Once you have all of this information, you’ll be able to set up the perfect Etsy Ads campaign. 

To set up Etsy ads, follow the steps below: 

  • Step 1: Visit and click on Shop Manager > Marketing > Advertising 
  • Step 2: Set your daily budget, which is essentially the maximum amount you’re willing to spend on a daily basis. While the default minimum is $1.00, it’s always recommended to go higher than that. 
  • Step 3: Add relevant details of your products and services, and start advertising! 


When you use Etsy Ads to promote your items, your ads may appear throughout Etsy. This includes both and the Etsy app’s Etsy Search, Category Pages, and Market Pages.

Moreover, with the help of these ads, your listings stand out in the Etsy search results. This makes it easier to reach consumers who are more likely to buy.

Research Keywords For Your Etsy Ads

Research Keywords For Your Etsy Ads

People shop on Etsy because they know they’ll discover something unique. They enter a few keywords into the search window and are presented with a variety of items. The keywords you use in your listings are critical for matching your listings to those queries. The Etsy search engine is intended to assist customers to locate what they’re looking for and encourage them to click “Add to cart.”

Etsy Search collects all listings with keywords that match a shopper’s search. The results are then ranked so that customers see the things that are most relevant to their search. Using powerful keywords in your listing increases the likelihood that your products will appear in search results.

Basically, the keywords you use in your ads will help ensure they are shown to the right people, hence it’s important to do keyword research first to ensure they will have the desired effect. Keywords should be added as tags, in the title, attributes, and in the product descriptions themselves. Please note that keywords can be changed later if your ads are not performing. 

Factors to keep in mind while finding the right keywords

  • Etsy suggests that you diversify your tag usage. They want to bring your listings in front of as many different shoppers as possible, and the only way to do so is to experiment with a large number of keywords.
  • Etsy provides a strong keyword research tool that shows you whether a term is a relevant and specific and if actual buyers are looking for and engaging with it! Continue to monitor your statistics and focus on replacing ineffective keywords.
  • Do not fall victim to the “set it and forget it” mentality. All year long, keep your listings loaded with the freshest keywords.
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Gathering Analytical Data From Your Etsy Ads

Gathering Analytical Data From Your Etsy Ads

Etsy Ads have the same benefit as other online ads—which is data. Every time someone clicks on the ad—or doesn’t—the data is tracked and forwarded to you, which you can use to improve the reach of your ad. Etsy also gives its users access to a search analytics console, which gives them valuable information on the performance of their listings. 

Search analytics, in essence, tells you how visitors locate your store on You may use search analytics to discover which search phrases drive visitors to your store and how many sales result from those searches.

How to use search analytics

Follow the steps below to use search analytics:

  • Step 1: Sign in to your Etsy account, click on the “Shop Manager” icon, and then click on “Search Analytics.”
  • Step 2: Select the timeframe for the data you want to look at. You get multiple options to choose from, including days, weeks, months, or even years. 
  • Step 3: Review your data, however, keep in mind that this data doesn’t include the visitors coming from the Etsy Ads.


NOTE: If your store has been open for at least a year, you may compare your statistics to the same timeframe last year.

Main data metrics to track

You may see how the following factors influenced your sales within the time period you specified:

  • Visits to your store: How many times did customers visit your store during this time period?
  • Visits resulting in a sale: The percentage of visits that resulted in a product order within this time period.
  • The average order value: The average dollar value of orders placed by customers who purchased from your store during this time period.
  • Total earnings: The gross revenue generated by your shop from consumers who ordered from you during this time period.

Managing Your Etsy Ads

Managing Your Etsy Ads

While there’s no doubt that the data Etsy offers is highly valuable, it’s of no use if you don’t take any action based on the insights. While most of your Etsy time will be spent looking at your auctions and searching for ways to improve them, don’t forget about your advertising budget and keeping the Etsy ads cost low. Keep a close eye on it and make adjustments based on how you’re doing. For example, if you notice that an ad for a particular product is costing more than the actual sales you’re getting, it’s best to turn it off. 

Furthermore, if a certain product isn’t getting enough clicks, you can lower its cost per click. Simultaneously, you can raise it if it isn’t converting well enough (providing you have a high enough ROI). The more data you have on what works, what doesn’t, and why, the more refined your targeting and message will be. 

Improve Engagement on Your Ads with A/B Testing

Split testing, often known as A/B testing, is a terrific way to improve the management of your adverts as well. Split testing allows you to compare many ad versions at the same time, providing real-time information into which advertisements are engaging with your audience. This reduces mistakes and makes tracking what works and what doesn’t easier. It is quite beneficial when attempting to optimize your Etsy advertising and can be used in a variety of ways, including split testing alternative photos, words, or headlines to provide fast feedback.

It only takes a few clicks to evaluate which options perform the best. Split testing provides essential data so that when you run additional advertisements, they continue to perform effectively over time.

For example, if you want to test two headlines, run a 50/50 split test in your campaign. One ad will have headline #1, while the other will have headline #2. The winning headline will then be your main headline that will be showcased to your target audience.

Growing Your Etsy Revenue

Double Your Revenue With The Power of Etsy Advertising

The primary benefit of Etsy ads is they can help your products reach a large audience, which eventually boosts sales. So, you need to spend some time to determine the best way your Etsy ad campaign can help you engage with new customers. Make sure you refer to the analytical data offered by Etsy and make changes to campaigns whenever needed, to ensure you don’t waste any money. 

However, it’s important to note that not all products sell well, even when backed by ads. A key factor that contributes towards successful ads on Etsy is selling the right products. Printed T-shirts are a popular item that sells well, and Printbest can be a valuable print on demand business partner that supplies quality printed T-shirts at competitive prices.  To learn more about our services, check out our free Etsy integration.

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