I am interested in knowing (especially from those who have a small daily budget) how much it is now going to cost us per click since we can not longer set our Max CPC. With the old system I had my listings set at .02 cents per bid and my max daily limit of 1 dollar was never even close to being met.
I am hearing horror stories that now our maximum daily budget is going to be eaten up quickly with this new system. So a 1 dollar daily max budget will be gone quickly (like in 2 clicks).
Can anyone confirm this?
It does take longer than 5 days to see a change. I saw no change at first, but now at a week, I am seeing a big increase in cost per click. I used to have a max of 4 cents per click - it normally would be 3 cents or less and the ROI was very good. It has increased (little by little, day by day) to over 11 cents per click! This does not seem high enough for Google shopping ads. So if it's just Etsy ads, why was 3 cents profitable before but now with almost 4 times that amount, there are no sales from it?
Just keep an eye on it. I also cut down the amount of listings promoted by quite a lot, but the click cost continues to rise.
I posted somewhere else - lots of theses threads,
My search criteria with the high click cost, only picks out 1 word, which is not really anything to do with the item,
if I have a tag "tea pot cosy"
so my tea cosies , at cpc 2c used to be clicked on for 1c -2c , and I would get sales, for pot cosies,
Etsy thinks "pot" and "pottery" are the same, so a search for "pottery" picks out my "pot" tag
if someone searched "for New Zealand pottery", (which they have, it's in my stats) 2c, isn't enough to bump it up so it gets any viewers, but if etsy bumps it up to 50c, then it will be high enough to get views, and someone just browsing for something else, might click on mine, just for a look, with no intention of buying
my old cpc filtered out etsy's useless SEO - etsy is now cashing in on it's useless seo
If you type brown tea cosy, you get wall art of teapots, and mug cosys, and brown pottery , and brown cross stitch patterns, and brown tea light holders, and brown honey pots - people might click, and it costs you an arm and a leg for that bump up - but they don't buy!
Well that explains it. It also explains why a niche search can bring up irrelevant ads. It's going with the highest CPC rather than highest relevance. So Etsy is mainly saying we have to let the AI figure this out for a month or two while we pay, pay, pay? And then what if their AI is not bright enough to ever really 'get' relevancy? That is not a good deal at all.
When I saw this happening with my cpc going through the roof - 44c a click, and no purchase! as opposed to 1-2c and purchases,
and looked at the search terms
I switched them off
My daily budget is set to $1 per day and my max bids were $0.03 - $0.05. Now my daily budget is still $1 per day but my bids ate up my daily budget in 2-3 clicks. I just turned the ads off. I can no longer afford them.
I had a daily budget of $20 and spent an average of .50 per click. I turned them off though because it spent $39 in less than 24 hours. If they can use up all of our monthly budget in the first part of the month, what’s the point? Just call it a monthly budget, not a daily budget.
Hi Karen, 39$ writen in the ads section or in your finances ?
Because if in the ads, those stats are given for two days even if you set the search for one. So if it is in the ads section 39$ for two days is a bit less than your 20$ a day max.
It had only been 23 hours since I had turned on the ads, they just used two days of my budget in less than one day. I know that they say it evens out over the month, but this is ridiculous. They can spend your entire monthly budget is whatever timeframe they want during that month?
My daily budget is $20. For 5 different listings, yesterday:
2 CLICKS $4.23
1 CLICK $1.92
1 CLICK $1.63
1 CLICK $1.53
1 CLICK $1.14
THIS IS ABSOLUTELY OUTRAGEOUS!!!
Did you try lowering your daily budget? Lower it to what you are willing to pay per day. Mine is at 1.00 and my clicks are costing about 4 cents each.
Mine was $1 a day, and started off ok on 9th, they started to gio up, then, when my clicks started to go to $0.44 EACH, I switched them off
CraftyCornishMaids; Mine were going up to 44 cents each, too. What I did is I checked to see which listings were costing the most to advertise and unchecked those listings and it went back to 4 cents.
I did that, then the others crept up too, I was only advertising about 15 items,
the problem I see, is that if etsy can't spend your budget on the 1-2c range, it will advertise you, wherever it thinks it will spend your money, even if it is on very high cpc, 1 word terms, that are actually irrelevant as 1 word searches,
Honestly, Im not even sure I have this right but maybe someone can help me. Since we were switched over on the 6th we have spent a total of $148.38 on ads we've had 411 total ad clicks and received 48 orders from ads for a total of revenue $1478.40, now. When I break this down, this is a total of .36 cents per ad click. Where as total ad cost is 9.8 percent of the total revenue from ads alone.
What I have found is that ads represented in the same time period only 27.2 percent of our traffic, whereas 47.4 percent of our total traffic source was from other etsy pages (whatever this means this still baffles me) and 13.3 percent from search.
Whereas, our sales were 3 times higher from sources such as other pages and and search. So Im confused a bit. Maybe someone here can tell me if this is a good roi underthis new system ...
Your ROI is running 10:1, e.g., $10 in revenue for every $1 Advertising spend. 1478 / 148 = 9.98 (rounded to 10).
Other Etsy pages = any Etsy page other than search (such as Conversation, a buyer's Favorites, etc.). This traffic category also includes all traffic from the Etsy app.
@VoyagePrint It depends, everyone's business is different. I know for me, ads have to stay below 5% revenue for me to get the hourly wage and margin I need to make Etsy worthwhile....so that's 20:1, or no more than $50 in advertising for every $1,000 in sales.
When you compare to Amazon and the other movers and shakers where there are serious buyers, it appears that giving any sales platform about a 15% cut (up or down a few %) is the industry standard. If you're doing Etsy ads, you have to lump that into your overall commission you're giving Etsy. That's why so many are moving to Amazon - it ends up being a comparable fee, with a lot more buyers.
It really depends on your business, expenses, goals, qty, ect. 10% for advertising isn't bad, however for internal etsy advertising with no potential for growth when they're turned off is a bit high for me. I like to keep mine at 5% unless I was directing people to my website. Etsy plus payment is 8% + listing and payment is .5 so you're in of 18%+ fees just to sell before your product costs or time or shipping.
I have a product line that is down to 10% profit so I can't spend much on advertising it. It's the lowest because the large qty I sell on amazon and competing with items made elsewhere. Also it is the product that keeps 2 employees working. Normally I don't like to drop below 25% profit and some are 50%. That gives room for overhead, loss, returns, sales, tax, ect.
Say for example you sell 200 items for $20 each. $4,000 a month sounds like a lot but let's break it down. If shipping is $5, ads $2, etsy $2.10, and supplies $6 then that's 25% profit $5 for your time. If it takes 20 minutes to make AND pack then you're making $14.7 an hour. Still not bad right? We're not done yet. You pay more taxes being self employed. Taxes will be 30-40% of your profit which means by the end of the month you have $600. Not bad if it's a side gig, but probably not enough to live on.
Say you are able to sell enough to work 40 hours a week at the above price points, after taxes it's $1500 a month. That also means making 24 items a day, all day non stop. Then don't forget overhead (perhaps replacing machines), time to the post office, pictures, listing on etsy, sick days, vacation, ect. It suddenly becomes min wage or overtime for the same $ as 40 hours a week.
I do like math. But it's very important to know your expenses, time spent, and profit. If you guess or leave things out you could be in trouble come tax time when you find you made little profit or worse lost money. If the above example was expenses before 10% ads, then that leaves you with $8.7 an hour before taxes. Which means you're making less than min wage after self employment taxes and time spent on extra things.
When I do custom 24 hour period, it just shows zero for all items so I have no idea what my cpc is.
What I do know is I turned ads back on after a few days to see if there's any improvement and there is an improvement.....for Etsy. They're taking even more than before. LOL
What a shambles.
Yeah, no. I shut mine off today. I know Etsy says to wait 30 days before doing anything, but...in one week Etsy quadrupled the amount I spent, with no sales to show for it. What's that ROI, Etsy? Oh yeah, it's zero. And it's unsustainable. The irony is that my ROIs were slowly improving with the old PLs before the switch.
I might set a budget, but in no way does that mean I actually want to spend that amount, let alone every day. My guess is that Etsy also wanted to eliminate the super-low CPCs we could get with the old PLs. When everyone bids a maximum 1 to 5 cents a click, that doesn't bring in the big $$$.
Off to re-strategize now.
ETA: Interesting. I did not get a "why are you stopping Etsy Ads" questionnaire when I shut them off. Wonder why.
I was switched over on the 11th. My daily budget is $1. And I'm still advertising my whole store of 117 items because I wanted to be able to compare to before the change.
Ad costs: 5.99
That works out to about 0.11 a click and ROI of a little under 35:1 (I think, right?). Compared to the month of August (before the change) which was about 0.14 CPC, and a dismal 1 sale of 93.00, that's pretty amazing. But I know it's very early days.
Also, on spending my budget since the change, I've never gone over the $1, and today I'm sitting at 0.99 currently (it's 6:00 pm here).
So I'm tentatively optimistic, but I also know that could change in a heartbeat.
I should add that before the change I had a variety of CPC's set. Some as low as 0.02 and some as high as 0.25. I would set the CPC higher on new items to hopefully give them an extra push, then steadily drop it down.
I have just been charged £1.21 for 1 click, which on PLs would have cost me .08 Never have I ever only got 1 click in a whole day until now, which was right at the end of the day! Someone is taking the pee up in Etsy land
I’ve been on Etsy since 2008 with this shop (and since 2006 with a supply shop). I’ve actually supported my family as a solo parent with my shop- until Sept 1st came and I found everything had changed over to this crap. My sales have plummeted to the point where I am now effectively unemployed. I don’t know what I am going to do, but I refuse to bleed money to them for this. I am going to have to leave.