I came across Mike's Handmadeincome.com site, by checking out a few comment responses on another blog. Mike share's in his income posts how he uses different channels to drive sales to his Etsy store. One method he shared was paid promoted listings on Etsy. With many using Etsy to sell products, I thought this would be a great interview to get for you.
Mike brings his experience & insights of using this method to help you make a more informed decision, on whether its a method you would like to use.
Hi ya Mike thanks for sharing your time for this interview
Can you first explain briefly what is Etsy Promoted Listings?
Etsy Promoted Listings is a way to advertise your listings on Etsy. When you use Promoted Listings, your listings will appear in Etsy search results in “reserved” spots both above and within the search results.
Etsy Promoted Listings uses a “Cost per Click” method, which means you only pay when someone actually clicks on your ads, not when your ads show in the search results (known as an ad impression).
You decide how much you’re willing to spend each day (daily budget), which listings you want to promote, and you can even decide how much you’re willing to pay for each ad click.
How long have you had your Etsy business and how long have you been using this promotional method?
Our store opened in late April, 2014. We began using Etsy Promoted Listings when Etsy launched the program (which replaced Etsy Search Ads) in mid-September.
How often do you use this method in a month, and why?
My use of Promoted Listings is ongoing. I may adjust my daily budget on occasion to find the right balance between cost and revenue, but I use Promoted Listings throughout the month. I've had success with Promoted Listings, so it’s a normal part of my marketing campaign for now.
Can you share a personal example of costs you have paid and the return it made in sales?
Certainly. Here’s an image from my December Income and Progress report that shows my cost and revenue each month from September – December 2014. As you can see, I paid a little over $600 for Promoted Listings during that time, but I earned more than $3,000 in revenue directly related to Promoted Listings.
I know the revenue is directly tied to Promoted Listings because when an Etsy user clicks on a Promoted Listings ad, Etsy then records any orders made on that shop by the user for up to 30 days.
Etsy tracks revenue for Promoted Listings in 2 ways.
1. If a buyer clicks on an ad and then buys that specific item in 30 days, it counts as revenue toward that Promoted Listing.
2. Or, if a buyer clicks on an ad and then buys any item in that shop within 24 hours, it counts as revenue toward that Promoted Listing.
What would a beginner have to consider when it comes to implementing the Etsy Promoted Listings method?
First of all, budget. Since you set a daily budget in Promoted Listings, you need to pay close attention to the cost. The minimum daily budget is $1, so if you run Promoted Listings for an entire month, you’ll spend up to $31, depending on the month. If you’re just starting out, and really anytime, you need to consider the cost of Promoted Listings against other marketing investments to determine if its right for you.
Next, Promoted Listings can be an important part of your overall marketing strategy, but not the entire marketing strategy. Etsy has over a million shops, so it gets a tremendous amount of organic traffic. Promoted Listings can help potential buyers find your shop once they are on the Etsy website, but sellers also need to market their shop outside of Etsy using methods like social media, blogging, building an email list, etc. Don’t rely solely on one method such as Promoted Listings.
Can you share some important do’s and don’ts to keep in mind before implementing this method?
Before you invest in Promoted Listings, you need to focus on at least two areas of your shop: Search Engine Optimization (SEO) and listing photos.
Etsy decides which Promoted Listings to show in search results based on titles and tags, so it’s really important that you spend time getting your listing titles and tags in the best shape possible.
Listing photos are also super important. When your Promoted Listing appears in the search results, you’re competing with every other search result on that page. Your listing photos need to give a potential customer reason to click on your ad. If your photos are dull and uninviting, you may get a lot of ad impressions, but few clicks.
For further reading about Etsy promoted listing method, Mike has a very in-depth post titled: The Most Comprehensive Guide to Etsy Promoted Listings – Ever!