Etsy is changing the way it tracks
ad performance for sellers who use its two advertising programs. There's no change in how much a seller will pay for Promoted Listings as a result of the change - at least for now. But sellers who advertise on Google Shopping through Etsy could end up spending more as a result of the change.
Beginning next month, Etsy will attribute sales to an ad when a buyer clicks on an ad for an item, then purchases any item from the shop within 30 days. As the announcement explains:
Currently, we attribute sales to an ad in two cases:
- A buyer clicks on an ad for your item, then purchases that item within 30 days
- A buyer clicks on an ad for an item, then purchases any item from your shop within 24 hours.
Starting October 4, we will attribute sales to an ad when:
- A buyer clicks on an ad for an item, then purchases any item from your shop within 30 days.
Sellers debated the change
, wondering if a shopper who clicked on an ad but didn't buy the item and returned 3 weeks later from a search engine and bought a different item from their shop would have been influenced by the initial ad or not. Some said they thought the information was valuable, others felt 30 days was too long a period.
Unlike eBay, Etsy doesn't charge a commission for ads - it's a cost per click model, so Promoted Listings should not be any more costly as a result of the change.
However, sellers who advertise on Google Shopping through Etsy could end up spending more of their daily budget since Etsy will be bidding more aggressively as it counts a greater number of ads leading to more sales. But that should also theoretically lead to more sales.
One seller told EcommerceBytes the change seriously over-values the ads. And if Etsy were to move its Promoted Listing Ads from CPC to a commission-based system at some point, the current change paves the way for Etsy to generate more revenue through the program.
Remember that if you have unique items, proceed carefully, since those listings may come up high in search results anyway. Former Etsy CFO Kristina Salen was candid when she said in March that Promoted Listing Ads were not a good fit for the majority of Etsy sellers. "It is really a service that best serves those sellers who can handle high-visit volumes in a shop," she said.
Is a cost per click (like Etsy PLAs) a better way to budget your ad spending, or do you prefer pay-for-performance (like eBay Promoted Listing ads)? And when you click on ads and view a product, how long does that ad influence your future purchase behavior?