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September 8, 2021 | 4 minute read

Quick Tips for Taking Your Etsy Ads Campaign to the Next Level

Take advantage of improvements to the Etsy Ads dashboard that make it easy to review listing-level results and adjust which listings you advertise.

Avatar image for Etsy Staff by Etsy Staff
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The data in your Etsy Ads dashboard can help you make informed decisions when running a campaign. Reviewing the information available regularly lets you optimize your advertising based on seasonal trends, inventory changes, and evolving marketing goals. Read on for an overview of new data available when running an Etsy Ads campaign, along with tips for adjusting your approach based on your shop’s unique performance.

Overview of improvements

Now in the Etsy Ads dashboard, you can see the click rate and return on ad spend (ROAS) for each of the listings you’re advertising. Click rate is the percentage of your ad views that result in a click. ROAS tells you how much you've made from every dollar you’ve invested in advertising.

These more detailed stats can help you better understand which ads are bringing you the most traffic—and profit—so you can make the most of your advertising budget. On the page you can see all these stats for each of the listings you’re advertising, and use the toggle to quickly start or stop advertising a specific listing based on how it’s performing.

Make listing-level adjustments easily

When you first start running an Etsy Ads campaign, we recommend promoting all of your active listings. But once your Etsy Ads campaign has run for at least a month, you can optimize your paid advertising by refining which listings you promote based on performance.

Metric to watch: ROAS

A popular way to determine your strongest performers is by looking at which listings are driving the highest return on advertising spend (also known as “ROAS”). The ROAS calculation answers an important question: For every $1 spent on advertising, how many dollars in revenue are being generated?

ROAS varies greatly by industry, but a common benchmark used is 2.8 ROAS. Review Understanding Your Ads Performance to learn more about performance metric calculations.

To calculate your current ROAS average to create a custom benchmark, look at your past 30 days total revenue, and divide that number by your total cost.

Based on the ROAS range you’re seeing across your listings, it’s easy to make optimization adjustments, including the following:

  • Focus your budget: Stop spending on the items that aren’t performing (looking at your current ROAS average, calculated above using your 30-day total revenue/total cost) and put that money behind the listings that are getting more views and sales.
  • Switch things up seasonally: Consider how interest in each item may vary with the seasons, and adjust which listings are being promoted to appeal to relevant shoppers.
  • Boost new products: If there are other listings you’re interested in testing (an exciting new product line, for example) you can take the budget you were spending on the less-than-stellar listings, and put it toward advertising the new listings to see how shoppers respond.

Metric to watch: Click through rate

Low click through rates (CTR) may encourage you to adjust factors in your listing to better resonate with shoppers who are viewing your listing in search results. Test engagement by changing up your primary photograph, or updating your title and/or tags to match buyers expectations for the item. For listings with high views but low CTR, check out Create Listings That Convert for more optimization tips. If you’re still not seeing conversion for those listings, consider turning off advertising for those listings to refocus your budget on the ones that are driving strong ROAS.

Read 3 Strategies for Deciding Which Listings to Promote for more ideas.

Monitor and adjust accordingly

Continue to check in on your campaign and each time you make an adjustment, give yourself time to collect data before making more changes. We recommend waiting about a month after each major modification to give your new campaign time to optimize.

Avatar image for Etsy Staff Words by Etsy Staff

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