There are two types of products that you will advertise: new products that you want to give a boost and visibility to, and best sellers, which are well-established products that already generate a lot of sales.
The New Product
When it comes to new products, the risk is higher. You're not yet sure if your product is well-optimized.
New shops face this challenge. But remember, if it doesn't work, you'll have the necessary data to help you optimize your products better.
For this type of product, your goal should be to achieve a ROAS of 1.
The objective here is to boost your product and increase its organic ranking on different Etsy pages.
The Best Seller
Advertising a best seller is much simpler because you already know that the product is optimized and performing well.
You should aim for a minimum ROAS of 2 if you're using a limited budget, and 1.5 if you're using a larger budget.
The goal here is to maximize your revenue and find the right balance for your Etsy ads budget.
Remember that the higher the price of your product, the better your chances of achieving a positive and significant ROAS.
In any case, if you have best sellers, use Etsy ads; otherwise, you're leaving money on the table.