Advertising can be an effective way to reach new audiences and increase sales, but it pays to test the waters before you dive in. Investing the time and money up front to test which of your products works best and what kind of return you can expect – can provide the information needed to optimize your ad campaign for long-term success. Here’s a handy guide to fine-tuning your advertising strategy on Etsy:
1: Choose the products to advertise
Best Selling Items
These products are already drawing people to your store, so there’s a good chance they’ll perform well when you advertise them to a whole new group of potential customers. If you sell vintage or unique items, choose ads that best represent the types of items you sell most often.
Launch a new product line? Rather than relying on organic traffic and waiting to see which products shoppers prefer, you can use a test ad to find out more quickly which items are most appealing to shoppers and which items are converting at the best rate.
The goal of this advertising test is to help you determine your long-term advertising strategy. So it’s best to avoid products that you plan to phase out from your inventory.
Define an advertising budget
Advertising platforms like Google use your budget to âbidâ on search terms that match your product. When people looking for a product like yours type these search terms into Google, they see your ad. You only pay when a buyer clicks on your ad and visits your listing.
It’s recommended by Etsy to set a minimum daily budget of at least $ 3 per day (or around $ 90 per month), if possible. Assuming you have a conversion rate of at least 2% -3%, you should plan to run your test until you have registered at least 100 clicks from your ads. That way, you’ll likely get at least some sales from your ads, so you can start to see what works.
It can take up to 30 days or more to get enough results, so keep that in mind when deciding how much to spend. In general, the more you spend, the more visits you get and the faster you can see which ads are performing the best.
Check your performance and make adjustments
Which ads get the most views?
If an ad gets a lot of views, it probably means buyers find the photo, title, and price appealing, which is a really good thing.
Are some ads getting a lot of views but no sales?
This can be a sign that there is something preventing buyers from making a purchase, such as a high delivery price or an insufficient number of photos in the listing. You may want to edit your ad to increase your chances of making a sale. You can find some tips on how to do it here.
Did you make sales from your ads?
If so, congratulations! This means that your ads are working and you are starting to know which ads buyers are most excited about.
If you notice that some of your ads are not performing very well, there are several options available to you:
Change your budget
Stop spending on items that don’t work and invest that money in the ads that get more views and sales.
Test other products
If there are other ads you want to try out (an exciting new product line, for example), you can take the budget you were spending on less-than-stellar ads and spend it on advertising the new ads to see. how buyers react.
4: Calculate your return
Once your test is done, it’s time to analyze the numbers and see what you’ve achieved on your ad investment. You can do this by dividing the income you earned by the amount you spent on your ads.
For example, let’s say in your ad test you spent $ 90 on advertising and your ads generated nine sales, for a total of $ 300 in revenue. To calculate your return, you would divide your $ 300 in income by the $ 90 you spent on advertising ($ 300 / $ 90 = $ 3.33). This means that for every dollar spent on advertising, you earn $ 3.33.
Once you know your return, you can use it to estimate what your return would be if you continued to advertise. If your ads are profitable, you can start increasing your advertising budget to further increase your sales, knowing that you will be able to get more return on the money you invest.
If your ads are not profitable, you can try testing other items or trying to make changes to increase your conversion rate and increase your return. The more you test, the more you’ll know which items shoppers find most appealing and how to best use your advertising budget.