How Etsy Ads Work? Are Etsy Ads Worth It?

Advertisements play a critical role in all sectors. They promote brand awareness and reputation, and if products are the point of the ads, sales! On Etsy, ads broaden your customer reach on Etsy Search results and other pages on the platform. So, how do Etsy ads work, and are they worth it?

How Etsy Ads Work

This piece will dive deeper into this topic, answering common questions about this subject. A bonus: You will learn how Roketfy can help strategize an Etsy ad campaign and how to build an Etsy ad strategy.


Let’s get started with a brief intro to what a successful Etsy ad entails:

What is a Successful Etsy Ads Strategy?

Before diving into the other questions, we’ll examine what a promising Etsy ads strategy entails. A strategy is your organization’s game plan, and having one accords with your order and efficiency.

A successful Etsy ads strategy combines the best Etsy ad budget management to advertise your listings where they would perform the best. And in a nutshell, here are some characteristics of a successful Etsy ads strategy.

  • The best Etsy ad budget aligns with your profit margins and competition. 
  • Your keyword selection must be relevant to your products. You may use Roketfy’s Keyword Research tool to identify high-performing terms. 
  • There should be regular reviewing of the ad performance data and adjusting bids accordingly to maximize ROI. 
  • Your business must craft compelling ad titles and descriptions, emphasizing product uniqueness. The AI Writer can be instrumental here.
  • Leverage Etsy Ads tips like scheduling promotions during peak seasons and aligning ad timing with your target audience’s activity. 

Remember, the best Etsy ads strategy evolves, adapts, and prioritizes data-driven decisions to drive sales effectively.

How Etsy Ads Work?

Etsy Ads, or Promoted Listings, is a powerful marketing tool within the Etsy platform. They work on a pay-per-click (PPC) model, meaning you only pay when a shopper clicks on your ad. 

Here’s a breakdown of how to set up Etsy Ads:

  • Set up: To get started, you must head to, select “Shop Manager,” choose “Marketing,” and select “Etsy Ads.”
  • Budgeting: The next step is to set your daily budget, which is the maximum amount you would like to bid. The platform allows a minimum budget of $1 and you have the freedom to change this figure at any time. After this step, you can proceed to advertise your offering.

Here are the background tasks to do for Etsy Ads:

Ad Creation

To get started with the advertising, decide the listings you want to promote. Etsy provides recommendations based on your listings’ performance, but you can choose your own. Roketfy’s Listing Checker could help you analyze your products and fit them into Etsy ads.

Here are the steps for starting an ad on Etsy:

  • From Etsy Ads, select “Manage advertised listings” and find what you need to start or stop advertising. 
  • Select the “Ad on/off button” to include or exclude the listing. You may add multiple campaigns at once by checking a box next to the listing. 
  • To stop and add, simply “uncheck the box.”
  • Press “update.” 


Etsy also allows you to target your ads based on delivery destinations. If you ship to India, your Etsy Ad will be shown to Indian buyers. This ensures your ads reach your ideal buyer persona.

Here is how you select a country to show your Etsy Ads:

  • On the website, select “Shop Manager.”
  • Select “settings,” proceed to “shipping details,” then “shipping profiles.”
  • Select “Edit” for the profile you are updating then “add or remove location.”
  • “Save profile.”

Are Etsy Ads Worth It?

Certain factors are always in play when measuring whether a specific feature or tool is worth it. For instance, some companies measure the financial profitability, while others gauge how far their ads on Etsy reach. And since success worthiness is entirely subjective from business to business, the answer may rely on the following factors:

  1. Product Niche

Ads on Etsy are most effective for unique, niche products. And so, the list of Etsy ads tips supports that if you offer one-of-a-kind handmade or vintage treasures, you’re likely to see a better return on investment (ROI).

The Product Research bit of the initial Etsy ads strategy is essential. With this information, you become better versed at narrowing down your product list to the ones that will make using Etsy ads worth it.

  1. Competition

Understanding your competition is vital in several ways. It offers leverage to boost your product or service and make it stand out. It also helps you set competitive prices.

So much so the competition level in your niche can impact and effectiveness; it goes without saying that highly competitive niches may require higher bids to stand out. Yet again, the Competitor Analysis can help here.

  1. Ad Quality

The quality of your product listings is critical. High-quality images, compelling descriptions, and competitive pricing can improve your ad’s performance. Conversely, poorly executed ads with grammatical and syntax errors and low-quality imagery could negatively affect your brand.

Here, Roketfy will come to your rescue with three features: AI Writer for the wordings, Keyword Research for the common terms, and Listing Checker for quality listings.

  1. Budget

Your best Etsy ad budget is crucial in determining your investments and ROI. Unfortunately, the only sure way to set a budget is to test your ads first. You may use the Etsy A/B testing and see how your listings perform. 

If the results reflect that your investment is comfortable with some adjustability, that might be your best Etsy ad budget. The ads’ performance must align with all your financial goals.

  1. Analytics

In content and product marketing, there is a lot of trial and error; some things work, others do not. Analytics become your quantitative and qualitative detector to highlight and eliminate what is not working.

Subtract what is not working and boost what is. By making adjustments accordingly, your Etsy ads perform better.

Ads on Etsy can be a valuable tool to increase visibility and drive sales, especially if you have unique products in a less competitive niche. However, monitoring and optimizing your campaigns to ensure a positive ROI is essential.

How Much Do Etsy Ads Cost?

As mentioned above, Etsy’s pricing model for the ads is a PPC model. This means that the cost can vary widely depending on several factors. They are:

The Bid Amount

Whatever your ads on Etsy bid amount is, it directly affects even the best Etsy ad budget. Higher bids are expensive, but they increase the likelihood of your ad being displayed more. Lower bids are more affordable, meaning less reach and shorter ad display days. You can choose your bid depending on how you set your business goals. 

Do the following to view your charges:

  • Select “Shop Manager”, choose “Finances,” then “payment account.”
  • You will access your recent changes on “Recent activities.”
  • The older ones will be under “Monthly Statements” at the bottom of the page.


Competition is healthy, but it also means that the higher the competition, the more work to put in. Based on the competition analysis, you may need to bid more in competitive niches to outperform competitors.

What Is the Best Budget for Etsy Ads?

Most companies set aside a marketing budget, which usually goes into several areas. There are sponsored ads, web content, blog content, and marketing automation software. This same budget goes multiple ways, so how much do you allocate to your ads on Etsy?

Here are some Etsy ad tips on budgeting:

1. Calculate Your Margins: Start by understanding your product margins. For these calculations, find answers to the question: How much profit can you make from each sale?

2. Consider Your Goals: Are you looking to increase brand visibility, boost sales, or target specific products? Your goals must align with your budget as it guides your sales and marketing team on where to apply pressure.

3. Competitive Analysis: Scrutinizing your competitors and their advertising strategies helps you better allocate your resources. 

4. Start Small: If you’re new to adding ads on Etsy, begin with a modest budget and monitor your results. You can gradually tweak your budget after collecting ad performance metrics, such as average click-through and conversion rates. 

5. Test and Optimize: To develop the best Etsy ad budget, continuously evaluate your ad performance. If an ad consistently generates profitable sales, consider allocating a more significant budget by adding a higher bidding amount.

What Is the Best Time to Run Etsy Ads?

Despite living in a world that never sleeps, each platform has clear ups and downtimes. These active hours are based on your time zone and target audience. For instance, in the US, shoppers may flock to Etsy’s marketplace in the evenings. And perhaps in the UK, shoppers use the morning hours to shop.

That said, setting up your Etsy advertisements during these times is wise if you live in the US, UK, or elsewhere. 

If you need a few more Etsy ads tips on timing, here are some ideas:

1. Seasonal Trends: The climate, pop culture, or news may affect seasonal trends in marketing and retail. So much so that some products perform better during specific seasons or holidays. For this reason, if you are setting up an ad for Halloween decorations, or Father’s Day, plan your ads accordingly to align with peak buying times before the holiday.

2. Product Availability: Sometimes factories develop and ship at specific times of the year. If your business is affected by these instances, ensure that the products you’re promoting are in stock and ready to ship. 

4. Promotions and Sales: Coordinate your ads with any promotions or discounts you offer. Buy one and get free shipping are two of the most popular promotions that Etsy buyers might appreciate.

How to Cancel Etsy Ads?

Let’s say an ad on Etsy has done exceptionally well, and it is time to take it down; how do you do that? 

Here is how:

  • Go to your Etsy shop and to the Shop Manager.
  • In your seller dashboard, navigate to the “Marketing” tab.
  • Click on “Etsy Ads” to access your advertising dashboard.
  • You’ll see a list of your active campaigns. To cancel a campaign, locate the “ Show more orders” click on the campaign you want to stop and select the option to pause or end it.
  • Etsy will ask you to confirm your choice. Review the details and confirm the cancellation.

Once you’ve canceled a campaign, your ads will stop running, and you won’t be charged for further clicks.

Etsy Ads vs. Facebook Ads

When it comes to advertising your Etsy products, you have two distinct options: Etsy Ads and Facebook Ads. Let’s compare these two advertising platforms in terms of their key features.

Etsy Ads offer prime visibility for your products, as promoted listings gain top placement in Etsy’s search results. They also allow a flexible budgeting capability that most marketers appreciate. This affordability makes Etsy Ads budget-friendly compared to other platforms. 

However, Etsy Ads are limited in reach since they exclusively target Etsy users. Furthermore, while you have some control over targeting, it is more restricted compared to other advertising platforms.

Facebook Ads, on the other hand, tap into a massive audience with over 2 billion active users. This vast user base provides access to an extensive and diverse pool of potential customers. Facebook Ads also thrive at precise targeting, letting you focus on certain demographics, hobbies, habits, and other aspects of your audience. They provide a range of ad formats, allowing you to select the one that best suits your campaign.

However, Facebook Ads can be more expensive compared to Etsy Ads, especially in competitive markets or when targeting specific demographics. Tracking the effectiveness of Facebook Ads can be more complex and requires a deeper understanding of analytics and attribution modeling.

Which is Better?

The choice between Etsy Ads and Facebook Ads hinges on your unique business needs and goals. Factors like your budget, objectives, target audience, and comfort level with advertising also play crucial roles in this decision-making process. 

You can experiment with both platforms to reveal which aligns best with your goals. So, test the waters and discover the advertising solution that propels your Etsy success.

Unlock Success with Roketfy

Understanding how ads on Etsy work and their worth in your e-commerce journey is essential for Etsy sellers. It entails a successful Etsy ads strategy that involves careful budgeting, keyword optimization, and continuous monitoring. It’s a dynamic process that can yield remarkable results when you do it right following the above Etsy ads tips.

But why stop there? With Roketfy, you can take your Etsy game to the next level. Roketfy offers advanced features to streamline Etsy sales, listings, and performance tracking. These tools empower you with data-driven insights and the tools needed to thrive in this competitive marketplace.Ready to supercharge your Etsy success? Start your journey with Roketfy today by signing up for a free plan. Elevate your Etsy ads strategy, boost sales, and achieve your e-commerce goals like never before. Don’t miss out – join Roketfy now!