I spent over $300,000 on Etsy Ads: Top Seller Shares His Secrets

Summary

In this video, Vlad, a top Etsy seller and consultant, shares insights on effective advertising strategies on the platform. He emphasizes that ads are not a magic solution but a tool to magnify visibility of suitable listings. Vlad explains the importance of understanding traffic types and targeting crossover niches with ads, while avoiding hyper-niche products. He discusses metrics to assess ad performance, like the favorites chart and click-through rates, and advises on when to stop ads based on seasonal trends and product interest. His experience shows that focusing ads on a select few listings can maintain traffic without unnecessary spending.

Takeaways

• 💰 The speaker has spent over $300,000 on Etsy ads, which highlights the significant investment required for advertising success.
• 🚫 Not all ad spending was effective; some decisions were not good, indicating the importance of strategic advertising.
• 📈 Ads are a tool to magnify and grow business, not a magic button for guaranteed sales.
• 🔍 Identifying the right listings to advertise is crucial; not all listings should be advertised indefinitely.
• 🏠 The investment in ads is compared to buying a house, emphasizing the scale of spending and the potential return on investment.
• ❌ Avoid using ads on hyper-niche products that have a very specific target audience and little crossover appeal.
• ✅ Focus on mid-niche and crossover niche products that can attract a wider audience and benefit from being advertised.
• 📊 Use data points such as favorite charts, view-to-visit ratios, and click-through rates to determine the effectiveness of ads.
• 📅 Be mindful of seasonal trends and know when to stop running ads based on product relevance and declining interest.
• 🔄 Experimenting with ad strategies, like reducing the number of listings with ads, can provide insights into effective advertising without impacting overall traffic.
• 🔑 Understanding traffic and targeting the right kind of traffic with the right listings is key to successful Etsy advertising.

Q & A

How much has the speaker spent on Etsy ads according to the transcript?

The speaker has spent over $300,000 on Etsy ads.

What does the speaker claim is the main reason for their success on Etsy?

The speaker claims that the main reason for their success on Etsy is running ads.

What does the speaker want to share in the video?

The speaker wants to share dos and don'ts of running ads on Etsy, including which listings to run ads on and which not to.

What is the speaker's name and their role on Etsy?

The speaker's name is Vlad, and they are a top seller on Etsy, as well as a consultant and manufacturer for other top sellers.

What is the speaker's view on the role of ads in business?

The speaker views ads as a tool, not a magic button that guarantees sales. Ads are a magnifying glass that can amplify the visibility of the right listings.

What are the three types of niches mentioned in the script?

The three types of niches mentioned are hyper niches, main traffic, and mid-niche.

What is a 'crossover Niche' according to the speaker?

A 'crossover Niche' is a product that is appropriate for a specific niche but can also appeal to other niches, such as a luggage tag being suitable for both travelers and bridesmaids.

Why should one not run ads on a micro-niche product?

One should not run ads on a micro-niche product because it is very specific and unlikely to appeal to a broader audience, thus wasting ad spend.

What metrics does the speaker suggest looking at to determine if a product is suitable for ads?

The speaker suggests looking at the favorite chart, the view-to-visit ratio, clickthrough rate, and the keywords that are being clicked on to determine if a product is suitable for ads.

What is the speaker's strategy for deciding when to stop running ads?

The speaker's strategy for deciding when to stop running ads involves monitoring the favorite chart for a decline in interest, considering the seasonality of the product, and evaluating if the product is still relevant and appealing to the target audience.

What was the impact on the speaker's traffic when they reduced the number of listings with ads from over 100 to 15?

There was zero difference in traffic when the speaker reduced the number of listings with ads from over 100 to 15, indicating that focusing ads on the right listings that can spill over to other niches is more effective.

Outlines

00:00

💰 Reflecting on High Ad Spend on Etsy

The speaker, Vlad, a top Etsy seller and consultant, opens by sharing his experience of spending over $300,000 on Etsy ads. He emphasizes that while ads were a significant factor in his success, not all of his ad spending was well-planned. Vlad intends to share dos and don'ts of running ads on Etsy, including insights on which listings to promote and which to avoid. He mentions that understanding the right time to run and stop ads is crucial, and he will discuss his transition from running ads on 100 listings to focusing on just 15, which surprisingly did not impact his overall traffic. Vlad invites viewers to subscribe for more in-depth business advice.

05:00

🔍 Understanding the Role of Ads as a Tool

Vlad clarifies that ads are not a magic solution but a tool to magnify and promote listings effectively. He compares ads to a magnifying glass or megaphone, which should be used in the right context. He advises against using ads for hyper-niche products that have a very specific target audience, as they are unlikely to benefit from broad advertising. Instead, he suggests focusing on mid-niche products that have the potential to appeal to a broader audience, which he refers to as 'crossover niches'. Vlad uses the example of a luggage tag, which, while serving a specific purpose, can also be a gift for travelers, thus justifying its promotion through ads.

10:02

📈 Analyzing Data to Determine Effective Ads

Vlad discusses the importance of analyzing data to decide whether to continue or stop running ads for a particular product. He recommends looking at the favorite chart, which shows the frequency of favorites over time, as an indicator of customer interest. A consistently increasing favorite chart suggests that a product is gaining traction and could benefit from continued advertising. He also suggests examining the view-to-visit ratio and click-through rate to assess the effectiveness of ads. Vlad advises that if a product is not generating interest or is too niche-specific, it may not be worth advertising. He shares his experience of reducing his ad focus from 100 to 15 listings, noting that it had no negative impact on his traffic, which reinforces the idea of targeting ads effectively.

15:03

🛑 Knowing When to Stop Advertising

In the final paragraph, Vlad addresses the question of when to stop running ads. He suggests monitoring the favorite chart for signs of plateauing, which may indicate that the season for a product has ended or that interest is waning. Seasonal products, in particular, require attention to the timing of ad campaigns. Vlad emphasizes that understanding traffic patterns and the nature of the audience is key to running successful ads on Etsy. He concludes by encouraging viewers to subscribe for more insights and hints at further content on understanding traffic for effective ad targeting.

Keywords

💡Etsy

Etsy is an e-commerce website focused on handmade or vintage items and craft supplies. In the video, the speaker is a top seller on Etsy and discusses their experience with advertising on the platform, highlighting the importance of understanding the platform's advertising system for business success.

💡Ads

Ads, short for advertisements, are a marketing tool used to promote products or services. The speaker in the video spent over $300,000 on ads on Etsy, emphasizing the significance of strategic advertising in driving sales and the need to understand which listings to advertise to maximize returns.

💡Magnifying Glass

The term 'magnifying glass' is used metaphorically in the video to describe the function of ads. It suggests that ads amplify the visibility of a product but do not inherently create value or guarantee sales, which is a crucial concept for understanding the role of ads in business growth.

💡Micro Niche

A 'micro niche' refers to a very specific, small market segment that caters to a unique set of interests or needs. The video discusses how micro niches are not ideal for ads since they have a limited audience, and products within these niches are unlikely to benefit from broad advertising.

💡Crossover Niche

A 'crossover niche' is a product category that can appeal to multiple market segments. In the video, the speaker explains that products in a crossover niche are suitable for advertising because they can attract interest from a broader audience, increasing the potential for sales.

💡Value Proposition

The 'value proposition' is the reason why a customer should choose one product over another. The video emphasizes the importance of having a strong value proposition, especially for products that are advertised, as it can make a product stand out and be more appealing to a wider audience.

💡Clickthrough Rate (CTR)

The 'clickthrough rate' is a metric used to measure the success of an online advertising campaign for a particular website as well as the effectiveness of email campaigns. In the video, the speaker uses CTR as an indicator of whether a product is attracting interest and is a good candidate for continued advertising.

💡Favorite Chart

The 'favorite chart' in the context of the video refers to a metric on Etsy that tracks how many times a listing has been favorited by users. The speaker uses the favorite chart to determine the popularity and potential of a product, suggesting that an upward trend indicates a product worth advertising.

💡Seasonal Products

Seasonal products are goods that are in demand at specific times of the year. The video discusses the importance of understanding the seasonal nature of products when deciding on advertising strategies, as the effectiveness of ads can vary with the seasonality of demand.

💡Traffic

In the context of online sales, 'traffic' refers to the number of visitors to a website or product listing. The video emphasizes the importance of understanding different types of traffic and targeting the right kind with ads to ensure that advertising efforts are effective.

💡Spillover Effect

The 'spillover effect' in the video refers to the phenomenon where a product's appeal extends beyond its primary target market to other market segments. The speaker suggests that products with a spillover effect are excellent candidates for advertising because they can attract a broader audience.

Highlights

Realization of spending over $300,000 on Etsy ads, comparing it to the cost of a house in some states.

Emphasis on the importance of ads for success on Etsy, but noting not all spending was effective.

Plan to share dos and don'ts of running ads on Etsy, highlighting which listings to advertise.

Introduction of the concept that ads are tools, not magic buttons for instant success.

Explanation of different types of niches: hyper niches, mega traffic niches, and mid-range traffic niches.

Personal anecdote about reducing the number of advertised listings from 100 to 15 without affecting growth.

Description of the favorite chart as a key metric for determining which listings to advertise.

Discussion on the importance of the click-through rate and how it indicates potential crossover niches.

Advice on turning off ads for products that don't perform well or are out of season.

Comparison of different traffic types and how they affect advertising decisions.

Example of a luggage tag as a product that can cross over into multiple niches, making it a good candidate for ads.

Insight on how to save money by selectively advertising products that have broader appeal.

Clarification that ads magnify listings but should be used strategically.

Explanation of the impact of micro niches and why they might not need ads.

Final realization that targeted advertising did not reduce traffic, proving the effectiveness of selective ad spending.

Transcripts

I just

realized that I spent over

$300,000 on ansy

ads that's like half of a house in some

states that's like a house so

advertisement is a big reason why I was

successful on Etsy is ADS I just ran ads

ads ads

and there are dos and don'ts I want to

share with you guys cuz not all of that

300,000 was like a good decision some of

that was not a good decision in this

video I want to share with you guys what

to do which listings to run ads on and

which listings to not run ads cuz

technically if I spend over

$300,000 on ads if I just understood

which listings not to run ads I could

like made like five figure money not by

not wasting like I want to make sure you

guys that's I'm just realizing how much

I've probably over PA Etsy but I want to

share with you guys the dos and do what

I've learned after running that much ads

on Etsy and what when to run ads I

wanted to give you when to stop running

ads cuz there's times you need to turn

off your ads okay they shouldn't run

forever and not all listings need to run

forever in fact on one of my store I

used to have like a 100 listings running

like ads non-stop like it was just

automatically on 100 listings and then I

just turned it off and I just did 15

listings and I'm going to talk about in

this video why I did that and has that

impacted my my uh you know growth I'll

just I'll share it with you guys towards

the end of the video so so make sure to

stick around this is the video you want

to watch when you're referring to ads

okay I for those that don't know my name

is Vlad I'm a seller on ansy I'm a top

seller on ansy and I also consult and

manufacturer for some of the top sellers

on Etsy and so so subscribe to this

channel this is a lot of this the de

deeper dive that you're going to get

here no BS I literally built my business

on these things that I'm sharing with

you guys today so make sure to subscribe

hit the Bell notification cuz I'm just

going to share the secrets y'all I'm

going to give it all on the

table 300,000 dude that's that's insane

okay Etsy made the money from me Etsy

makes a lot of money like they need to

start like making stuff like for us to

to use get better anyways enough enough

diving into despair so the things that

you need to think about when you're

running ads um is that ads are

essentially your magnif

any it's it's just a magnifying glass

okay it's not going to make you business

it's not going to Magic it's not a magic

button that all of a sudden gets you

sales okay and a lot of people think

that and they lose money and then they

go on YouTube and say how Etsy ads did

not work for me it's a tool okay and

once you understand that it's a tool

you're saying how can I apply this tool

how can I utilize this tool to grow my

business it's not a a magic switch and a

lot of people look at for on YouTube

content that just just say there's a

button on there somewhere on Etsy that

if I click it I'm going to be successful

that's not how Etsy works and so when

you understand that advertisement is a

tool all of a sudden things change it is

a magnifying glass it's a megaphone

There Are Places you don't want to use

megaphones in you walk into a classroom

don't use a megaphone it's not a great

place you know you don't magnify a light

bulb right cuz you cuz it's just going

to burn your eye you don't magnify the

sun it'll burn your eye like there

that's horrible horrible example but my

point is this when you understand that

it's a tool you're going to need to use

it the right way like that the way that

it's supposed to be so if you're

magnifying something magnify the right

listings and like I said in my previous

videos when you're selling a there

there's three different traffics right

there's hyper niches niches that are

just they're they're they're they're so

small and specific like a a superhero

themed bridesmaids t-shirt there's very

few people that will love superhero

theme so that's a Micro Niche nobody

else would be interested in a bridesmaid

that has like a some kind of superhero

theme to it just that bride that's it

and it's not going to cross over to

anything then there's like the mega the

the big traffic the the main traffic and

in those traffic that's that's where

you're you're you're selling something

that most people that come on ansy would

find intriguing they might even favor it

and add it to cart and I'll buy it some

days later because it's such a cool

product and those are the ones that get

massive volume in traffic and and then

there's mid Niche and this is where my

my favorite kind of listings to

advertise are kind of located and I'll

talk about that in a little bit but by

by the way if you have not watched this

that video I'm going to have that video

at the end of this video so you can

watch that and you'll know a little bit

more of what I'm talking

about so and there was a confusion for

some people that uh when you guys were

saying what is a crossover Niche so in

the mid uh a niche mid kind of range

traffic what essentially that means is

your traffic is yours and that's traffic

is not going anywhere however your

product is also appropriate it can dip

its toe in other niches so and I brought

an example of a luggage tag luggage tag

is what you buy it's like a personalized

it has your name your phone number so if

you lose your luggage you know they can

call you there's a way to contact you

because everybody loses luggage at um

you know at at airport okay so you have

a luggage tag it has your information

all that stuff and the people that are

looking for luggage tags are like hey

honey we're getting on a vacation we're

just getting married yeah this is going

to be fun but hey we need to solve this

problem let's go on Etsy and buy a

luggage tag they're not going to be oh I

decided to buy a mug oh I decided to buy

a wallet no there's a specific function

they want so that traffic is yours

you're not sharing it with a mug okay

however it is also a bridesmaid's gift

it is a is a gift or you could add it to

you know it's a traveling gift you know

on the gift mode that Etsy has it's

where you know what is your friend or

person that you're buying this for what

are they interested and one of those

things is travel and so this is like

like ooh that would be a fun gift to

somebody that loves to travel is giving

them a really cool luggage tag really

cool idea so it it crosses over to

traveling as well so now there's people

competing or or other products competing

in that area but your traffic belongs to

you but also it can cross over so that's

called a crossover

Niche those products do really well on

Advertising so let me explain when you

have a Micro Niche that literally nobody

else like the majority of the people

like except that one specific person you

don't need to run ads because that

specific person will find your listing

but it's not appropriate for people that

don't know about that listings or not

are not interested so micronas is just

to that product and just to that uh um

customer however if you do have

spillover effect like a luggage tag is

appropriate for traveling gift then that

that product is great to magnify okay

this is where we're talking about

magnifying the product that is

appropriate when it crosses over to

another n because what you're

essentially saying like is saying okay

there's other people that are not

specifically looking for this product

that need to hear about this product and

you're magnifying that product okay

really important this is this is deep

level

stuff when you're kind of scaling this

viral you're trying to get viral

essentially and Target the big traffic

and this is where a bunch of top sellers

are kind of hanging out is when your

product is so appropriate that not even

traveler enthusiast but more people that

haven't even thought of traveling will

look at this and like oh wow that's a

fun gift or fun just you know GI for

something so you're you're you're

targeting most people and you're getting

to those large traffic and so

advertisement helps to really magnify

and explode your product to crossover or

other other people to to to know about

if your product doesn't do that and

you're going to tell people about this

superhero bridesmaids t-shirt for a dude

that's just searching for fishing stuff

you're going to lose your money when he

clicks on it accidentally or whatever

you're going to lose your money now Etsy

does figure out that that person is not

appropriate for this and over time it'll

figure out so you're wasting not only

sometimes money but just time like you

thought it was going to do something but

it really didn't and and so that's

exactly why I um decided to to to take

off advertisement from a lot of my dog

cers I was selling because a lot of them

were really hyp kind of hyper Niche they

were very specific Niche we'll talk

about that how did to Define that or

determine a really specific Niche um so

I turned it off and I only ran

advertisement for products that do spill

over products that are appropriate for

like oh any female that has a dog will

benefit from that okay or a any dude

that wants this or that has a dog will

benefit from that those are the products

that I advertise okay and that's kind of

what you want to ask yourself okay this

is a niche this is in the niche but hey

are a wider group of people are they

going to appreciate this product and

you've got to be honest with yourself

and you'll look at data to determine

that as well again we'll talk about

which data points you need to look at so

that's kind of generally what I look at

is it a not only is it a crossover D but

hey is this group of people going to

appreciate this gift or be a you know

benefiting from this gift also if you

have a product for example let's just

stick to luggage tags it has a value

proposition better than all the other L

luggage tags and it also has a better

proposition for a crossover Niche like

for example air tag case right air tag

case is you know a product out there but

if you have a luggage tag with an air

tag case you've now provided value that

is better than not only in your Niche

but also outside of your Niche all of a

sudden game on advertised that puppy and

it's going to do well now do your own

research I don't want you go buying

luggage tag and said Vlad said I'm going

to make money off it so which metrics do

you need to look at to determine whether

it is a kind of a crossover it will be

able to spill over and it's something

worth shouting to the world or is it a

pro product that is very hyper Niche

what you need to look at is first I look

at the favorite chart that's my favorite

chart to look at and you for for my

students you know I love the favorite

chart when you just run ads and you can

run ads on the on the listing in the

beginning I actually do that unless I'm

specifically designing a certain product

knowing that it's for a

micrones if I want to know whether it's

a micron Niche or not I run ads for

about a week or two and if the favorite

chart doesn't look exciting it's just

occasional favor maybe you know it's

just it's it has those little bumps and

it doesn't do nothing and it by the way

you can find this in stats portion

scroll down and you will find it in on

the bottom if it has these little bumps

it's pretty much very occasionally

nothing's happening to the listing

however if you're getting bump one and

then bump two bump three and then bump

bump and then you get like to favor and

it starts to climb that means customers

are voting with their favors that your

product is worth

uh exploding because the direction is

upwards when you have that that's a

indicator that hey probably people that

are not within your Niche have also

favored it like meaning there's other

people outside of your Niche that

probably favored it like that gives you

a signal like hey maybe those people in

that Niche would also appreciate that

let's keep this advertisement running

the other one that I look at is visit to

to to a viewto visit ratio you can look

that under listing you will see people

that not only see it but Al come into

the listing and visit the listing right

or not only do they view but they also

visit that means with clicking they

ident now you can also look at your

clickthrough rate make sure the ones

that have a higher clickthrough rate are

the ones cuz it with clicks they're

voting saying and that's kind of like

the earlier tell uh sign that you know

that your product has potential even

before favorite chart is the clicks if

they're clicking that means they're

agreeing with your description like gift

for traveling right even even though

it's maybe a bridesmaid or or or a

wedding or honeymoon travel tag but it

also is voted in other clicks um you

could also assume that that's going to

be a crossover Niche that is hey this

appropriate for advertisement and

another one is looking at the keywords

that you're being clicked on if the

keywords having high clickthrough rate

on non your Niche or outside of your

Niche that is appropriate for

advertisement right when I did for dog

callers you know when it's just dog

caller dog caller but then it says you

know pet gifts or personalized pet gifts

I'm like okay this is appropriate to

continue to run ads but if I'm very

specific on a dog call and I'm barely

getting any clicks on pet gifts that's a

no that's a giveaway that I'm not going

to run ads on this okay so but when do

you stop running ads okay let's just say

we've determined these are the the ads

that we're going to run when do I stop

running ads if you look at the favorite

chart like I said if it's barely doing

anything you turn it off however if

you're if you're doing seasonal products

this is often times you need to ask

yourself when is the season over cuz

some products are not as clear-cut like

it could be a holiday season which is

pretty clear obviously when Christmas is

over it's over but there are products

like summer products when is summer

really over for the internet well you

got to look again at the favorite chart

and see if it's starting to Plateau

right it it goes up and then it starts

to Plateau you need to make a decision

is it like a heavy to season like people

like wedding products are good to

continue to advertise cuz people get

ready for the weddings even after but if

it's like something that involves doing

in the summertime you start up let so

you know that it's going to go down but

uh obviously if the favorite chart's

starting to show less favors that's a

good indicator that this is time to to

turn off your advertisement this is

going to save you money this is what I

wish I did because I probably spend more

money than I needed to um so I look at

the favorite chart look at where is it

tracking and that's going to give you a

good indication when you should turn it

off all right sorry guys after editing I

realized I didn't tell you whether I how

much difference going from advertising

100 listings to only advertising like 15

there was Zero difference and that

exactly proves my point that the the the

traffic did not drop at all my proves my

point that when you're when you're

targeting the listings that are able to

spill over to other niches are going to

be the drivers and I kind of looking

through that data kind of what I told

you guys looking at those data points

that basically told me which listings to

advertise and which on listings are not

and I just dwindled it down to5 and that

didn't make a single dent in my traffic

cuz the the hyper Niche the Micro Niche

they don't do anything anyways so I went

from over like it was like over 100

listings to just 15 on advertising and

it didn't make a difference now if

you're going to run you're going to want

to run ads you need to understand

traffic you need to understand how it

works and which kind of traffic you're

targeting with the right kind of listing

remember advertisement is a tool if you

don't understand your traffic you don't

understand where you know where you're

actually trying to rank check out this

video cuz I talk about how to understand

your traffic and once you understand

your traffic you're going to know more

about it then you're going to know a

little bit more about how to run your

Etsy ads and again if you guys subscribe

and hit the Bell notification I will see

you guys later if not I guess this the

last time we're seeing you