Setting up an Etsy ads campaign is not overly complicated, but it still requires following a specific process.

Select a goal

After clicking on "Marketing" and then "Etsy Ads," you will arrive at the Etsy Ads dashboard. Etsy will ask you about your goal with Etsy ads. Simply respond, as it doesn't seem to influence the performance of your ads.

This is the one I choose.

Select a budget

Once you've chosen your goal, select the budget you want to allocate for your campaign. To start, I recommend a budget between $3-6. This will allow you to collect data and achieve some nice initial results if your products are optimized.

If you have the budget and you're confident in your product optimization, feel free to increase the budget. However, be cautious; as you increase the budget, Etsy will target broader audiences with your keywords. This can be optimized, but we'll discuss this later.

Select the products

Now you'll need to select your products. Simply click the checkmark below "Ad on/off.”

You might be wondering, okay, but how many products do I select? All of them? Just one? That's a great question, and the answer depends on the budget you want to allocate to these ads, the price of your products, and your product optimization.

If you're starting with a reasonable budget, I'd suggest selecting multiple products, especially those you believe have the best chance of success. Etsy will automatically allocate the budget among these products based on their performance.

However, if you're using a substantial budget, I'd only select the best sellers, especially those with higher price points. With a larger budget, more people will click on your product. But if your product only costs $3, that means you'd need to make a sale every 7-8 clicks to be profitable.

On the other hand, if you advertise a bundle that costs $35, you'd need to make a sale every 100 clicks or so to be profitable, increasing your chances of a positive ROAS.

How Long Should I Run Them Before Making Modifications?

This depends on the budget you allocate to your ads, but generally, you should wait at least a month before making drastic decisions.

Especially if you're a new shop, the first few days can be challenging as Etsy is still trying to understand what you're selling and will conduct many tests with the keywords you provided.

If you allocate a significant budget, you'll already have a lot of data to analyze after 2 weeks. So, you can start making some adjustments if needed.