Etsy is an online marketplace for handmade, vintage, and craft supplies. It allows independent artists and crafters to sell their products directly to customers. One way sellers can promote their Etsy shops and items is through Etsy advertising. But how much does Etsy charge for ads? In this comprehensive guide, we’ll look at the different Etsy advertising options, pricing models, and tips for setting an advertising budget on Etsy.
Types of Etsy Ads
Etsy offers several advertising formats sellers can use:
Offsite Etsy Ads
Offsite Etsy ads show products to potential buyers as they browse sites and apps in the Etsy advertising network. For example, a shopper may see an ad on Facebook or Instagram for a relevant item being sold on Etsy. Sellers only pay when a shopper clicks on the ad.
Onsite Etsy Ads
Onsite ads appear in search results and other locations across Etsy.com. They help drive traffic directly to the seller’s shop and listings. Onsite ads include:
– Listing ads – Appear next to Etsy’s standard search results.
– Shop ads – Promote an entire Etsy shop.
– Pattern ads – Display across Etsy’s onsite search results.
Etsy Plus
Etsy Plus is a subscription advertising service sellers can use to boost visibility in onsite and offsite ads. By paying a monthly fee, sellers get additional exposure and perks like discount coupons.
Etsy Coupons
Coupons allow Etsy sellers to offer shoppers a discount on their order. When a buyer redeems a coupon, the seller pays a small advertising fee. Sellers can create coupons to use in Etsy ads or share across other platforms.
Etsy Ad Pricing
The amount Etsy charges for advertising depends on the type of ad and pricing model:
Offsite Etsy Ads
For offsite Etsy ads, sellers pay based on the number of clicks their ads receive. The current click pricing is:
– $0.15 per click in the US, UK, and Canada
– $0.09 per click in Germany and Australia
– $0.05 per click in all other regions
So if a seller’s offsite ad receives 100 clicks in the US in a month, they would pay $15 to Etsy that month.
Onsite Etsy Ads
For onsite Etsy ads (listing ads, shop ads, pattern ads), sellers are charged based on their total ad spend and Etsy’s “expected click value” for the ad:
– Listing ad cost per click = Total daily ad spend ÷ Expected daily clicks
– Shop ad cost per click = Total daily ad spend ÷ Expected daily clicks
– Pattern ad cost per click = Total daily ad spend ÷ Expected daily clicks
This means the more a seller spends on Etsy onsite ads, the lower their average cost per click will be.
Etsy determines the “expected click value” based on factors like the seller’s industry, keywords, and location targeting.
Etsy Plus
Etsy Plus costs $10 per month for shops based in the US, Canada, UK, and Australia. The monthly fee is $5 for shops located elsewhere. Sellers must continue paying the monthly Etsy Plus fee to keep receiving the advertising benefits.
Etsy Coupons
When a buyer redeems an Etsy coupon, the seller is charged 5% of the discounted order value. For example, if a buyer uses a coupon for 10% off and places a $100 order, the seller pays $5 to Etsy (10% of $100 is $10 discounted from the order, and 5% of $100 is $5).
Factors Impacting Etsy Advertising Costs
Several key factors influence how much sellers end up spending on Etsy advertising:
Advertising Budget
Etsy ads are flexibly priced, meaning sellers don’t have to commit to a fixed daily or monthly ad spend. However, setting a daily budget cap can help control advertising costs. Ad spend may be higher on days with more traffic and lower when there is less site activity.
Ad Placement
Ads placed higher in search results or featured more prominently on-site tend to gain more clicks, driving up advertising costs. Sellers can opt for lower-ranked ad placements to reduce costs.
Audience Targeting
Etsy’s offsite ads show products to interested buyers based on the types of websites and apps they use. Targeting a more focused audience relevant to the products can result in higher click-through rates and overall ad spend.
Competitiveness of keywords
Certain keywords are highly sought-after by Etsy sellers for onsite search ads. Bidding on competitive keywords usually leads to higher costs per click. Less popular keywords will be cheaper for each click.
Product pricing
Higher priced products typically earn more money per transaction for Etsy sellers. This means they can justify spending more on advertising while still earning a profit. Lower priced products have thinner profit margins, so ad spend may need to be restricted to keep sales profitable.
Seasonal trends
Advertising costs tend to rise during peak Etsy shopping periods like the holidays. Higher site traffic means more ad inventory available, potentially driving up ad prices. Less busy sales seasons may allow for lower ad costs.
Tips for Setting an Etsy Ad Budget
When establishing an advertising budget on Etsy, keep these tips in mind:
– Start small – Test with a daily budget as low as $1/day to conservatively gauge performance.
– Consider costs per click – Average costs per click can guide budgeting, but keep an eye on metrics as they fluctuate.
– Factor in conversion rates – If they have a good rate, sellers can allot more budget since more clicks convert to sales.
– Don’t overspend too quickly – Pace ad spend over the course of each month instead of using it all at once.
– Analyze ROI – Compare advertising costs to the profits generated to ensure positive return on investment.
– Adjust as needed – Check metrics frequently and tweak budgets to optimize performance.
– Target key seasons – Increase budgets during big sales periods, reduce during slower months.
Sample Etsy Ad Budgets
| Monthly Sales Goal | Recommended Monthly Ad Budget |
| $1,000 | $100 |
| $5,000 | $250 |
| $10,000 | $500 |
| $25,000 | $1,250 |
These sample budgets show spending around 10% of projected sales on Etsy ads. Higher-volume sellers may invest 15-20% in advertising to maintain momentum.
Etsy Ad Cost Calculators
Etsy provides a couple tools sellers can use to estimate their advertising costs:
Etsy Ad Calculator
This calculator shows the projected cost per click and total monthly spend for offsite Etsy ads based on:
– Monthly advertising budget
– Estimated or actual click-through rate
– Average order value
Sellers plug in these numbers to calculate potential ROI.
Keyword Planner
Etsy’s Keyword Planner helps sellers research potential search terms to target. It provides monthly search volume data and average costs per click for each keyword. This allows sellers to estimate their advertising costs for targeted keywords.
Comparing Etsy Advertising Options
|
|-|Ad Type|Pros|Cons|
|-|-|-|
|Offsite Ads|Broad reach beyond Etsy site|Less control over placement; must pay for all clicks|
|Listing Ads|Appear alongside organic results|Have to compete for top placement|
|Shop Ads|Promote entire shop easily|Don’t highlight specific listings|
|Pattern Ads|Provide repetitive exposure|Lower placement than other onsite ads|
|Etsy Plus|Added exposure; extra perks|Monthly subscription fee|
|Coupons|Encourage purchases/trials|Buyer must use coupon code|
|
Each Etsy ad format has advantages based on a seller’s specific goals and target audience. Testing different options can help identify the best performing ad types.
Conclusion
Etsy advertising costs vary based on factors like ad type, placement, targeting, and seasonal trends. Most sellers budget around 10-20% of projected sales for ads. While costs are flexible, monitoring advertising performance and return on investment is key to optimal budgeting. Using all the options Etsy provides, sellers can develop an effective, affordable advertising plan to promote their Etsy shop and listings.