I used a budget of $1000 per day for my Etsy ads, here's what happened.
3 févr. 2024
Table of contents
Introduction to my Etsy ads Campaign
I created my second Etsy shop in October 2022, and quickly found success with over 1000 sales and €6000 in revenue without using any ads initially.
I was hesitant to use them, especially after seeing many negative comments about them in Facebook groups. However, one day, I came across an explanatory video on YouTube and was able to talk to the author.
I explained my situation to him, and he literally told me that not using Etsy ads for my bestsellers was like throwing money out the window. So, here's what I did next.
I started with a controlled budget of $5 then $10 per day on my top 10 Etsy products.
I didn't start with a budget of $1000 straight away, but I did start with a reasonable budget, only $5 per day then $10 to improve my sales and the ranking of my listings on the first pages of the Etsy search results. The results were very promising quickly, and this YouTuber was absolutely right...
I quickly achieved a return on investment of over 3, and my income increased. However, I wasn't satisfied, and I had many questions about whether to increase the budget.
How far should I increase it? Would that not target less relevant customers? Would my ROAS (Return On Ad Spend) decrease?
I found many answers online and on YouTube, including those from sellers who had tested setting the budget to the maximum. I was very scared to do it, but I gave it a try.
I now use a budget of 1000€ per day for my Etsy ads
I now use a budget of $1000 per day for my Etsy advertisements.
So I set my maximum advertising budget on Etsy to $1000, the highest possible. It doesn't spend the full $1000 per day, but the first days were scary. The first days were daunting, my ROAS dropped to 1, the budget increased significantly, understandably, but sales didn't follow suit. In total, for the first 5 days, I used ads for 10 products, with prices ranging from $3 to $36. So, I made two decisions to continue testing this strategy.
I reduced the number of listings, keeping my bestsellers and the most expensive ones.
I analyzed the keywords used that led to a click. I then removed any irrelevant ones. From there, my budget was better controlled.
The product must be a bestseller
I only left ads on bestsellers, and if you want to test this strategy, I recommend doing the same. Your product is selling well, there's demand, now let's see how far it can go. Personally, it worked very well for all these products, but one eventually slowed down, so I had to stop ads on that product as the ROAS dropped below 1.
My Etsy ad revenue then skyrocketed thanks to the ads
My revenue later skyrocketed, especially for my €36 bundle. There were days when I sold it more than 10 times, and three-quarters of the sales came from Etsy ads. In September, it brought in €4200 for a €1000 spent. Was it worth it, right?
Organic sales from my Etsy shop increased
When I started using this strategy, I noticed a significant increase in my organic sales, going from 8 to 12 orders per day to 15 to 25 per day. Is this the main reason? I'm not sure, but many Etsy sellers using this strategy have observed the same thing. Perhaps Etsy favors shops that spend more.
My current results
I continue to use this strategy on 3 products, changing two monthly. I alternate between my best products to give them a boost. My ROAS has stabilized around 2. In any case, I won't stop Etsy ads, which are very beneficial for my shop. Here is overall Etsy ads performance:
Conclusion
Keep in mind that running Etsy ads can be risky and consume a significant portion of your revenue if your products are not optimized. Adopt this strategy only for your bestsellers, and ideally, those with a higher price point.
I also use Etsy offsite ads, but this will be for another article.
If you want to learn more about Etsy ads, check out my Ultimate Etsy ads guide.
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