Etsy Insights: creating an Etsy Ads budget | Etsy Success

ArjunsShop · 2020-07-20T18:58:32.096000Z

Hello!My name is Arjun, and I’m a product manager on our Ads team at Etsy. In my role, I work with engineers, designers, and researchers to better understand our sellers and build products for Ads that meet their needs. We’ve heard from our seller community that building an advertising budget can be confusing or difficult when first getting started. I want to shed a bit of light on ways you can manage your Etsy Ads budget in order to drive growth for your shop. Etsy Ads make it easy to get your listings in front of the most high-intent buyers searching on Etsy. You just need to set a daily budget and pick which listings you want to advertise. However, picking the right budget can raise some big question marks for many sellers. Here are a couple tips on how to think about setting up and managing your Etsy Ads budget.Take baby steps: If you’re a new ad user, don’t be afraid to start small and gather data on your performance and costs. When you’re advertising, the Etsy Ads algorithm uses several factors, including how relevant your advertised listing is to the buyer, as well as their likelihood to engage with it, in order to decide when and where to show your ads. This means that your costs could vary from time to time and from other sellers. That’s why we recommend keeping your ads running for at least 30 days in the beginning before you make any adjustments.Pick a budget you can manage: You want to pick a daily budget that you’re willing to invest for a few weeks. The minimum is $1, but we often give guidance to try a $3-5 daily budget if you can. You only get charged when a buyer clicks on your ads and goes to your listing. But once your daily budget is used up, we stop showing your ads that day. Often you may not know which listings will perform the best. So, if you’re advertising all your listings, and especially if you have more than a 100 listings, a larger budget will allow more of your listings to be shown. This will give you a better understanding of which ads are performing best.Let the data guide you: If you’re an existing ad user, you can use your Etsy Ads data to adjust your budget to fit your goals. Look at your average cost per click (CPC). This is the total amount you spend on ads divided by the numbers of clicks you received. You can use your average CPC and your conversion rate, which you can find on your shop’s Stats page, to estimate how much budget to set.For example, let’s say your average CPC is $0.30, and your conversion rate is 2%. You want 10 new orders a month from Etsy Ads.That means if you get 500 visits, you can expect approximately 10 of those shoppers to make a purchase, assuming your conversion rate remains at 2% (2% of 500 visits is 10 orders).To potentially get 500 more visits to your shop each month, you estimate spending around $150 a month on Etsy Ads (500 visits at $0.30 a click is $150).Therefore, you may want to increase your daily budget by $5 to get closer to your goal. Visit the Seller Handbook for more insight into understanding your advertising performance.What are your goals for advertising?

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Etsy Insights: creating an Etsy Ads budget | Etsy Success | Etsy Community