Etsy Advertising 101: A Beginner's Guide to Promoting Your Etsy Shop

Etsy Advertising 101: A Beginner’s Guide to Promoting Your Etsy Shop

Etsy is an online marketplace that has become a popular destination for millions of buyers and sellers worldwide. With over 81.9 million buyers and 4.3 million sellers, Etsy is a hub for creative individuals who want to showcase their work and connect with a global audience. From vintage jewelry to handmade decorations, Etsy offers over 60 million items across a wide range of categories.

As a seller on Etsy, it’s not enough to just list your products and wait for customers to come to you. You need to actively promote your work, optimize your listings, and engage with prospects to build your brand and grow your business. That’s where Etsy advertising comes in.

Etsy advertising can help you generate exposure for your online store and reach a wider audience. However, it’s important to weigh the pros and cons of advertising on Etsy and consider how it fits into your overall marketing strategy.

In this article, we’ll take a closer look at the benefits and potential drawbacks of Etsy advertising, how to set up and manage your campaigns, and what you can expect in terms of pricing. Whether you’re new to Etsy or an experienced seller looking to take your marketing to the next level, this guide will provide you with the information you need to succeed on the platform.

Types of Etsy Advertising

Etsy offers several types of advertising options to help sellers promote their shops and products. Each type of advertising has its own pricing structure and fees.

Promoted Listings

Promoted Listings are pay-per-click ads that appear in search results and on category pages on Etsy. The fees for Promoted Listings are calculated based on a bidding system, and you’ll need to set up a campaign to see the exact numbers. Every penny counts when you’re a small business owner, so it’s important to set a daily budget you’re comfortable with. Etsy recommends spending around $3 to $5 per day on advertising until you learn the ropes. You can start for as little as $1 per day, but no more than $25.

Offsite Ads

Offsite Ads are another Etsy advertising option that uses a more predictable pricing model. With Offsite Ads, your adverts will appear on Google, Instagram, Pinterest, and other platforms, including third-party publishers like Shape, Martha Stewart, and MyWedding. The costs for Offsite Ads are based on a percentage of your sales. Vendors with less than $10,000 in revenue per year pay a 15% advertising fee per sale, while Etsy stores earning $10,000 or more per year pay a 12% advertising fee per sale. Although the costs are quite high, you can still make a profit depending on your sales volume and average product price. It’s also important to note that you’ll only have to pay when a customer places an order within 30 days of clicking on your ad. If your Etsy store generates less than $10,000 per year, you can leave the program anytime by logging into your account, clicking Shop Manager, selecting Offsite Ads, and turning off this option.

Etsy Ads

Etsy Ads (formerly known as Google Shopping) are pay-per-click ads that appear on search engines like Google and Bing. The fees for Etsy Ads are calculated based on a bidding system, and you’ll need to set up a campaign to see the exact numbers. Your ads will be displayed to buyers who search for products or services on the platform. As with Promoted Listings, it’s important to set a daily budget you’re comfortable with. Etsy recommends spending around $3 to $5 per day on advertising until you learn the ropes. You can start for as little as $1 per day, but no more than $25. If you type “earrings” into Etsy’s search bar, you’ll first see sponsored listings that sellers paid for. These are labeled “Ad by Etsy seller.”

In summary, the fees and costs associated with Etsy advertising vary depending on the type of ad and your daily budget. It’s important to choose the option that works best for your business and to set a budget that you’re comfortable with.

How to Set Up Etsy Advertising

Etsy advertising can be a powerful tool to help you reach a wider audience and drive more traffic to your shop. Here’s how to set it up:

  1. Creating an Etsy Advertising account

To get started with Etsy advertising, you’ll need to create an advertising account. This can be done by going to your Etsy shop’s dashboard, selecting “Marketing,” and then clicking on “Advertising.”

  1. Setting up your first ad campaign

Once you’ve created your advertising account, it’s time to set up your first ad campaign. You can do this by selecting “Create a Campaign” and choosing the type of ad you want to run. Etsy offers several different types of ads, including:

  • Search ads: These ads appear in Etsy search results when a user types in a relevant keyword.
  • Offsite ads: These ads appear on external websites and social media platforms like Google and Facebook, and can help you reach a wider audience.
  • Onsite ads: These ads appear on other Etsy pages, such as the homepage or the “You might also like” section on product pages.
  1. Choosing your target audience

Once you’ve selected the type of ad you want to run, it’s time to choose your target audience. This will determine who sees your ads, and can be based on a variety of factors, including:

  • Location: You can target users in specific countries, regions, or even cities.
  • Interests: You can target users who have shown an interest in certain types of products or categories.
  • Demographics: You can target users based on factors like age, gender, and income.
  1. Setting your budget

Finally, you’ll need to set your budget for your ad campaign. Etsy advertising works on a pay-per-click (PPC) model, which means that you’ll only pay when someone clicks on your ad. The cost per click (CPC) can vary depending on factors like the type of ad, the target audience, and the competition for that keyword. According to Etsy, the average CPC for offsite ads is around $0.30, while the average CPC for onsite ads is around $0.12.

Overall, Etsy advertising can be a great way to reach a wider audience and drive more traffic to your shop. By following these steps and experimenting with different types of ads and target audiences, you can find a strategy that works best for your business.

Elaboration on Tips for Successful Etsy Advertising

Use high-quality images

The first thing that catches the eye of potential buyers is the quality of your product images. Therefore, using high-quality images is crucial for successful Etsy advertising. Make sure that your images are clear, well-lit, and showcase your product from different angles. Use a plain background to eliminate any distractions and highlight your product.

Use targeted keywords

Etsy is a search-driven marketplace, and the use of targeted keywords in your product title and description can significantly increase your chances of getting discovered by potential buyers. Use relevant keywords that accurately describe your product, and include both long-tail and short-tail keywords to maximize your reach.

Keep your budget in check

Advertising on Etsy can quickly add up, and it’s essential to keep your budget in check to ensure that you’re getting a positive return on your investment. Start with a small budget and gradually increase it as you see positive results.

Monitor your ad performance

It’s crucial to monitor your ad performance regularly to see what’s working and what’s not. Etsy provides a range of tools and metrics to help you track your ad performance, such as click-through rates, conversion rates, and return on ad spend (ROAS).

Adjust your campaigns

Based on your ad performance metrics, adjust your campaigns accordingly. For example, if you notice that certain keywords or images are performing better than others, allocate more of your budget towards those ads. Similarly, if you notice that a particular ad is not performing well, consider tweaking your keywords, images, or targeting options to improve its performance. Continuously optimizing your campaigns will help you get the best results from your Etsy advertising efforts.

Additional Tips for Successful Etsy Advertising

  • Use social media to promote your Etsy shop

Utilize social media platforms like Facebook, Instagram, Twitter, and Pinterest to promote your Etsy shop and your products. Share high-quality images of your products, post updates about new listings or promotions, and engage with your followers to build a loyal customer base.

  • Offer discounts and promotions

Offer special discounts or promotions to customers who find your shop through Etsy advertising. This can help to entice new customers to make a purchase and encourage repeat business.

  • Optimize your product listings

Make sure your product listings are optimized for search engines by using relevant keywords in your titles, descriptions, and tags. This can help your products to show up higher in Etsy search results and increase visibility to potential customers.

  • Use customer reviews to your advantage

Encourage customers to leave reviews on your Etsy shop page and use those reviews to your advantage in your advertising campaigns. Highlight positive reviews in your ads and use them to showcase the quality and value of your products.

  • Test different ad formats

Experiment with different ad formats, such as sponsored listings or promoted listings, to see which ones work best for your shop. Test different ad copy, images, and targeting options to find the most effective combination for your business.

  • Use seasonal or trending keywords

Incorporate seasonal or trending keywords into your Etsy advertising campaigns to capitalize on current events or holidays. This can help your products to show up in relevant search results and attract customers who are looking for specific items.

  • Consider offering free shipping

Offering free shipping can be a great way to entice customers to make a purchase, especially if your competitors are charging for shipping. You can either include the cost of shipping in your product prices or set a minimum order amount for free shipping.

  • Keep an eye on your competition

Monitor your competitors’ pricing, product offerings, and advertising strategies to ensure that your shop stays competitive. This can help you to make informed decisions about your own pricing and advertising campaigns.

  • Continuously optimize your campaigns

Continuously monitor and optimize your Etsy advertising campaigns by adjusting your bids, targeting options, and ad copy to improve performance. This can help you to achieve a higher return on investment (ROI) and maximize your advertising budget.


In conclusion, advertising on Etsy can be a highly effective way to drive traffic to your shop and increase sales. By following the tips outlined in this article, such as using high-quality images, targeted keywords, and monitoring your ad performance, you can optimize your Etsy advertising campaigns and achieve better results.

Additionally, by leveraging social media, offering discounts and promotions, optimizing your product listings, and using customer reviews to your advantage, you can further enhance the visibility and appeal of your Etsy shop. With consistent effort and experimentation, you can find the right advertising strategy that works for your business and helps you achieve your goals.

Remember that advertising on Etsy is not a one-time fix, but rather a continuous process that requires ongoing optimization and improvement. By staying up-to-date with the latest advertising trends and best practices, you can stay ahead of the competition and continue to grow your Etsy shop for years to come.

Scroll to Top