I Spent Over $72,000 on Etsy Ads and this Happened...

[@richm34]

Great video! Very instructional and accurate. We limit marketing budget to 25% of net profits (but the actual spend is around 10%). Our net profit target is 20% for print on demand over the course of a year. Net profit will dip to 15% and raise to 25% month-to-month, weighted toward holiday season. Your results sound very consistent with our experience! Thank you for sharing. 🙂

[@EcomHannah]

Thank you so much for the thoughtful comment :) glad you enjoyed

[@emilyraybabin]

This is major gold. Thank you Hannah!

[@EcomHannah]

yay glad you enjoyed

[@neutralzsdesigns488]

if im already on page one for 1 year should I do ads on that ? thank you so much detailed videos inspiring

[@EcomHannah]

How are you checking your rank if you’re just checking by the search page it’s not technically correct since your page is going to show you listings that you previously visited, which are most likely your own, but regardless, if you are making good sales on that listing or have a best seller badge, that’s a really good sign and you definitely would want to add fuel to the fire with ads

[@EcomHannah]

Thank you for watching :)

[@BrandBuilderElisabeth]

Love this thanks so much for the info! I'm struggling now with my shop at $40,000 in sales the first year but the ads ate up all my profit (approx. 30% marketing cost still). I'm handmade too so I wanted to be at a 20-30% profit margin but I ended the year breaking even. I keep wanting to turn ads off but I know they help a ton. Do you see a lot of shops that only break even in the first year?

[@EcomHannah]

Yes and that’s awesome for your first year, getting a proof of concept even at break even is great, my second brand I didn’t pull a dollar out of the business for the first two years

[@EcomHannah]

I would have to take a deeper look on what your doing for optimization to see how we can get that cost down but I would say watch some of my full trainings they will help you a lot

[@myorangeglasses2018]

I had the same situation and my sell’s dropped like 60% after I turned adds. And than it took 3-4 month to get back. I couldn’t understand why I’m not doing any profit and than I just put my prices 20% up and turned off free shipping and surprisedly my sells didn’t drop down, but keep being the same (but with higher margin). And than I add to my Standart products, couple more unique products with diferent color mix and bundle it. And it really helped! Also helping to add 1-2 new products a month. Ps: I also making handmade products in NY. Now fully living from my business profit.❤ Hope, it helps. Don’t turn off adds, just put more work into growing

[@EcomHannah]

awesome value thank you for sharing this you are awesome for writing all this out :]

[@christinacallies4086]

Hey Hannah, thanks for the great video. I’m currently taking a course that recommended turning ads off at night. I have been following your strategy of maxing out my ads and was at the max spend of $500 a day. The moment I paused my ads for 8 hours the other evening my daily ad spend limit dropped to $200. What are the advantages/disadvantages of this other strategy. I’m just going to leave them on my optimized listings from now on. Thank you!

[@tiffanytyler7476]

Can you do a video how to understand what listings are working for you with the data we get in the ads section. Like the views and clicks and favorites ect.

[@EcomHannah]

Yes, please check out my full trainings in my channel. This will really help guide you as well.

[@kavindu_uk]

What do you sell? Digital or physical?

[@EcomHannah]

Physical we make and design everything in house

[@christinasmith6721]

Great video! I’ve plateaued so this is a great strategy worth trying! Thank you

[@EcomHannah]

Glad it was helpful!

[@JMICTHEBRAND.]

Ayyyy so much with marketing 😅 I am on a roll learning as much as I can!! And booking, inventory on top of making high quality luxury candles omg lol

[@EcomHannah]

Thats awesome, good stuff keep it up :]

[@camst164]

I'm POD and a lot of my ROAS is around the 2.5 mark after a few months - they do sell though. How would you tweak the dials on this type of product to make the ROAS higher? I guess I'm looking for what you mean by tweaking the dials - what is within our control to do? should we be actively managing the key words etsy is pushing for the add on a daily basis? should we be changing price to see if it influences ROAS? thanks!

[@EcomHannah]

Man it’s a lot to explain from a KZbin comment, but I would say Q the next videos to watch full training so you have an understanding of what I mean :) first thing first is you need to figure out what your break even roas are

[@camst164]

@@EcomHannah if my break even Roas is 3.0, but organically and with ads the item hits this, would you keep it on, even though if just looking at the ads alone, it would be losing money (ie ads is 2.5 roas) ?

[@EcomHannah]

yes so compared to top line if it is making money i do tend to keep it on but there are still exceptions to this like for example if you have thousands of listings you are testing sometimes its better to make higher standards and losing on the ad level is not worth it cause you have so many other heavy hitters generating you 3+ roas so its better to let the spend go to those instead

[@garyc2703]

Does turning off non relevant keywords in your ads actually do anything? It says at the top of the page that it’s a test.

[@EcomHannah]

I would definitely turn off anomaly words, not words that you actually need in your listing

[@EcomHannah]

For instance, if you’re selling a 20 x 20 pillow cover and you’re getting clicks for a keyword that says 16 x 16” well then you’re just wasting clicks on the other product that you don’t even have in your listing

[@LennyYT]

Great video🎉 it's my belief that they don't have taxes understanding either knowing clearly how marketing is a tax write of etc and it's also a play on volume because if you can increase your orders per day exponentially you can weather lower margins. Maybe make content explaining all of this 🎉

[@EcomHannah]

ooo great idea thank you for the comment

[@floridehounkpatin2110]

What about digital download ads ?

[@EcomHannah]

yes 100% worth it if done right, requires different strategy but possible

[@experimentaltreat]

1 for 3 is a great ratio

[@EcomHannah]

:]

[@CeccoAMV]

Which ad goal you think works best from the options Etsy gives ? I'm now "Take my sales up a notch" thank you!

[@EcomHannah]

Yes I always do take my sales up :]

[@directlyg]

Do you have time for a shop audit?

[@EcomHannah]

I do offer 1-1 store audits here, they tend to run 1-2 hours: bosscom.kartra.com/page/LwJ130

[@directlyg]

@@EcomHannah Booked! Thank you 😊

[@EcomHannah]

awesome talk soon :]

[@automaton111]

How many ad impressions in a smaller niche before you make your decision to continue/discontinue ads on a listing? I had a product running ads for a couple months at $5/day which Etsy wasn’t even spending, but it wasn’t selling so I turned off ads 🤷‍♂️

[@EcomHannah]

it really depends on how many listings you have, price point etc, but check out my full ad trainings so you can get a clear picture on the right choice

[@EcomHannah]

for your products specifically

[@myorangeglasses2018]

My stats is pretty similar, if to take a look in percentage. I spend 8,000$ and made 21,000$ (Selling linen home decor) Pretty competitive niche 😅

[@EcomHannah]

As long as it is profitable that is awesome :)

[@happycowgirl32]

I've noticed that by creating more content, this results in more sales.

[@EcomHannah]

content meaning listings? yes this usually tends to be a huge help, unless you are market capped for your niche

[@heatherm2428]

I wonder the person in the example is keeping the "profits" to compensate her for her labor? Maybe she isn't in the postilion to scale?

[@EcomHannah]

Mmm based on her messaging she is a one man show

[@kris4897]

70K in ads ?

[@EcomHannah]

spent *

[@kris4897]

@@EcomHannah imo it's too much.

[@EcomHannah]

Not sure what you mean :[

[@kris4897]

@@EcomHannah in my opinion it's too much, you spend too much in ads. But if you're happy with the results, then.

[@EcomHannah]

mmm I mean when your still clearing a 35% net after spend thats a pretty optimized business but if you have a beter case study example with out ads I would love to hear about it. I am only one data sample so please share

[@RenataBka]

Really 72.000

[@EcomHannah]

Yes mam ✨