Blowing Money on Etsy Ads? Here’s How to Profit with Hannah Gardner of Profit Tree

Last updated on: January 13, 2025

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Julie Berninger and Hannah Gardner discuss using Profit Tree to run better Etsy Ad campaigns.

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They delve into the use of Profit Tree to analyze ad performance, emphasizing the difference between ROAS (Return on Ad Spend) and TACOS (Total Advertising Cost of Sale).

The discussion highlights how effective ad strategies can lead to increased organic growth and overall profitability.

Takeaways

Etsy ads can significantly increase profit if used correctly.

Understanding your ad costs is crucial for profitability.

TACOS provides a more holistic view of ad performance than ROAS.

Organic sales should be established before running ads.

Not all products are suitable for advertising; focus on high-margin items.

Investing in ads can lead to long-term organic growth.

The quality of your product listings impacts ad effectiveness.

Data collection and analysis are key to improving ad strategies.

Etsy favors sellers who invest in ads, creating a competitive edge.

Continuous learning and adaptation are essential for e-commerce success.

Chapters

00:00 Hannah’s Etsy Journey and Profit Tree

00:10 Understanding Etsy Ads and Profitability

06:21 The Importance of Ads in Etsy Sales

13:16 Metrics That Matter: ROAS vs. Tacos

18:56 Understanding Ad Revenue and Profitability

23:28 Analyzing Tacos and Ad Cost Percentage

23:53 Calculating Break-Even ROAS for Handmade Sellers

25:58 Setting Profit Margins and Tacos Thresholds

29:54 Navigating Customer Support and Community Resources

32:47 When Ads Are Not for Everyone 33:39 Identifying the Right Time to Use Ads

36:55 The Importance of Organic Sales Before Ads

39:46 Creative Strategies for Product Positioning

Resources:

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Hannah Gardner @ecommhannah on YouTube

Chelsea Shelton

Chelsea has over 13,000 sales in her Etsy shop and sells on Teachers Pay Teachers too! In her own words, “I wanted to have a creative outlet when I wasn’t spending time with my kids. I never knew that I would have so much success in a short time and pursuing my business as a full-time thing! I love all things printables and creating and cannot wait to help others be successful with their Etsy shops too!”

Chelsea Shelton