People are seeing dashboard notifications & are reporting that they are getting messages when trying to adjust their Promoted Listings, so it looks like the day is finally here.
Here are the basic help files on Etsy Ads that I could find so far:
It's going to take me a few minutes to go through everything, but it looks like you will be transitioned to them if you don't change your own PLs over within the next few days ("by September").
*****EDIT: this means that if you have a high daily maximum budget, Etsy may spend the entire excess on Google Ads without you knowing, if you are not checking your ads every hour. You can still edit your daily maximum at this time (I just did in my other shop)*****
Etsy first announced these during their 2nd quarter financial results call, which we analyzed here: https://community.etsy.com/t5/Pricing-and-Finance/Etsy-2nd-Quarter-2019-Financial-Results-Site-Sales-Up-21-4-to-1/m-p/127564451
(post includes links to the announcements, the call transcript etc.)
I set my advertising 10 dollars a day and I got 2 click lol spend 35 cent today because my shop getting low visit
Well, I said I'd give it 30 days, and I've 8 days left to go, but I'm pretty confused.
My dashboard shows I generated $0.23 worth of clicks for 9/30, but today Etsy billed me for a $1 (for 9/30 ads). Am I misunderstanding the billing cycle?
In any case, not a single sale from Ads since being enrolled on the 9th.
my sales have stopped and am thinking of giving it one more month, maybe two and if not back up will close.
Blue Hands Boutique, holly jenkins
Maybe you could help me understand exactly what is changing? I admit I have not had time to read much about it because all of my product is made in three months of the year and that is now. So I work until midnight every single day until it's done.
I have Promoted Listings and I have Google Shopping. From the first article you listed, it doesn't look like much is changing for PL, but I don't know.
What I have really, really been worried about is IF they are going to make changes to Google Shopping. Because more than half of my traffic is via Google Shopping and only less than 5% of my traffic is via PL's. I have been hoping to see that they are not going to mess with Google Shopping. But if they are, then how? What are they going to change?
@Pedricks, CindyLou's (very generous!!) blog post, which she linked to above, will tell you just about everything you need to know. Definitely worth reading!
@Phyndz Yes, I know. But this is the only time of year I can make my product and I work 16 hour days seven days a week unitl it's done. So I don't have time to read. Was hoping for a short answer. Got it.
I just realized this was happening. So that was a fun surprise. My ROI definitely decreased with this change. I really liked the etsy ads. Being able to set the bid amount was a great tool. Google ads is WAY more expensive.
My comments after watching the youtube video (posted in another thread, but it's relevant here) ...
Has anyone else watched the youtube video (link is on my dashboard) on Etsy Ads?
The example shown around the 50 second mark is pretty telling, if realistic. Screen shot here: https://imgur.com/x9TnztA
If that's an example of performance, and assuming the budget of $10/day is spent, over the 30 days shown:
These numbers are FAR worse than my current PL performance. If this is a harbinger of things to come, I'm certain to turn off my ads when they become Etsy Ads.
One would think Etsy would have manufactured a more optimistic example for their marketing of this new product.
Based on the screen shot, looks like it's costing $300 (30 days at $10/day) to make $627.53. That high a marketing cost might work for products with a very high markup ... but this is Etsy, products here don't have a high markup!
But I'm sure some people will be desperate enough for sales to settle for this.
All I have to say is YIKES. .45 cost per click with a 2:1 return on investment (spending $300 to make $600)?? My PLs are all set to .04-.15 per click, with a bare minimum ROI of 12:1. For the past 30 days, my ROI was 19:1- I spent $80 to make $1500. My PL's bring in an average of $1800 a month, which accounts for 18% of my shop's total income, so I would strongly prefer not to lose them, but if my ROI drops below 10:1 I will drop ads like a sack of moldy potatoes. This change could have a seriously negative impact on my shop, finances, and quality of life :(
Yes, exactly @Chrysalism - my threshold is 10% too, although I've been well below that over the course of many years running PLs. I'm willing to give this a shot, at my existing PL budget. If my return drops below my threshold (i.e., if I end up spending more than 10%), I'll drop my ads faster than you can say "bad move Etsy!"
I've just emailed Etsy a note to ask them for assurance (and something more substantial than the FAQs) they will not use my entire daily budget in a blink of an eye through excessive bidding. Much like @Chrysalism I intentionally bid low amounts and see relatively high ROI for my budget (no where near the 12:1 but an acceptable limit). Typically Google's PPC is significantly higher than Etsy's so I'm curious how the Etsy Ads process will ensure my daily budget isn't thrown away on high - and non-converting - traffic.
Ugh this is NOT good ROI at all!!! I'm running at 14:1, and sometimes fall a tiny bit below that, but 2:1, NO NO NO. I hate to lose the revenue from PLs but I won't hesitate to discontinue if my ROI goes below 12:1 consistently. Etsy's loss.
Yup...my PL ROI has been near the 1000%+ mark in previous months, but with the inability to adjust maximum CPC I'll likely be turning them off completely on everything, except perhaps my most expensive offerings.
I just went ahead and "got early access" just so I can pre-disable all my low priced items -- there's no way I'm going to spend upwards of $1 on a Google click for an item that is only $35.
A few months ago I thought I'd take a look at my Promoted Listings and was shocked to see that my auto-bids were near 50c, so my $2 budget was gone very quickly. I changed my bids to 5c and immediately saw an uptick in clicks and an uptick in sales through my PLs.
I just cannot believe that every month or so, Etsy rolls out something new and wonderful that is just the opposite. I am glad that they've backtracked with the "Recent Activity," putting the pictures of the items back instead of the customers, and putting the number of Featured Listings back to four from three. But the big changes that affect the amount of money we earn, they'll never change those. The shipping tax, the charging all fees to our shop account, the Free Shipping blackmail, and now this - all of these schemes directly affect our bottom line.
If their magic smart computers determine that the best bid is 54c, then that's that, right? The only thing we can change is the actual amount of money we fork over to them for the privilege? This is unreal.
$10 a day is an AWFUL lot of money for some people, too. This example, along with that ridiculous Free Shipping example from a couple of months ago, shows how out of touch these people are with many of us. My sales have dropped significantly in my CoxRetros shop because of my not participating in the Free Shipping scheme and I am NOT confident that forking over more money to have the same amount of advertising will help.
Too much time is wasted and too much stress is caused each month trying to understand this major changes. I wish they would leave us alone for a while.
Whoops! While we wanted our latest Etsy Ads Video to focus on budget, we also completely understand that some of you wanted to see another essential item: The spend. It’s below “views” in the Etsy Ads dashboard and currently hidden in the video. We’re updating that. But, for those of you who wanted it, the spend in this case is $123.60 per month with $10 a day budget–equaling a pretty great return. Please stand by as we update the video.
"the spend in this case is $123.60 per month with $10 a day budget–equaling a pretty great return."
A 5:1 ROI is ABYSMAL. It is not a "pretty great return". It's the equivalent of giving a 20% discount on all items, in addition to the 8% already taken for fees (not to mention "free" shipping, sales, and coupon codes Etsy pressures sellers into offering). It's getting into the range of asking sellers to offer wholesale pricing in order to sell and advertise on Etsy and it's unacceptable. If 5:1 is the optimistic projection Etsy is choosing to share in its promotional materials, it does not bode well for the reality of Etsy Ads.
Most of the high volume sellers I know of (including myself) have strict guidelines that they will cancel or tweak their ad campaigns if the ROI drops below 10:1. My current ROI is 19:1- if it drops to 5:1 (only 26% of my current returns), there is absolutely zero chance I will continue to pay for Etsy ads for any amount of time.
Yeah, that's not a good ROI, Etsy. We are also high volume and have a hard limit of 10:1. 5:1 would be a complete waste of money and we've opted out of Etsy Ads (and cancelled PLs as of yesterday) to avoid this fiasco.
@FidosFlowers, I appreciate the reply. Yes, spend is obviously a critical metric. "... a pretty great return?" Not in my book. I hope Etsy plans to aim higher. You've claimed that you can do better than us sellers with our budgets that we're now handing over to you, so the gauntlet has been thrown, so to speak.
I decided that if it works anything like Google ads, I won't use it. The whole budget would often be spent in one or two clicks. It's insane, and I predict few will use it because of this. They need to keep the ability for sellers to determine the cost of a click.
It will definitely cost more the with the new Etsy ads than it did with promoted listings. Like someone said...if your daily budget is the MINIMUM of $1.00 a day...they will be sure to charge the $1.00 a day. Which then you might as well figure in that you are spending $30 a month up front no matter what. And as we all know....if you don't go along with the new way of promoting then your listings will be shoved way back in the search...just like with the Free Shipping policy. Either you go along with the new changes or find another way to offer your goods.
This is exactly what I see on my websites' AdWords account (I don't even do the 'shopping' ads because of the expense).
In days gone by, I would not make a sale or a profit from sales, because I was spending a huge amount on AdWords just to be in the game. GoogleAdwords also look at your daily budget and bid amount to determine your ads 'relevance' and whether it shows or not in your schedule.
The objective is to get you to spend more and more and more...both on bids and on daily budgets. Now I try to limit my spend, and if I'm not seeing any sales, I don't use Google Adwords at all.
Ironically, this is one of the reasons I joined Etsy - to get away from this model!!
I think this is how it will go with Esty in the future. You will need to pump money into this just so your listings get any kind of visibility (as you are in effect targeting two sites - Google and Etsy), with no option to choose to market to Etsy users/searchers only.
Bear in mind, you not only pay for advertising on Google, you also pay Etsy a commission on your sales!
I think Etsy will ultimately just become a 'feeder' site for Google, which is a great shame.
We are in the same boat as you....just when we corrected everything a few months ago from changes this major change happens.....