EcommerceBytes-NewsFlash, Number 2641 - September 29, 2011     0 of 3

Etsy Rolls Out Product Ads in Search Results

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Etsy launched its new product advertising program on Wednesday after announcing it for the first time last week. Ads, which are exclusively listings from Etsy's own sellers, began appearing in search results on Wednesday, and user response to the new ads was swift.

"I just searched for "Eiffel Tower Necklace" and came up with notebooks, calendars, etc., and these items were NOT mistagged. Looks like more tweaking is needed. Ugh," wrote one user on the Etsy boards.

Another seller wrote, "Well the search I did worked perfectly. I searched for pearl necklace to see if my newest listing showed up in search. all the ads were pearl necklaces on the first 4 pages I checked. Beautiful items too! Unfortunately my new necklace wasn't listed in search."

Etsy sellers can set up ad campaigns on a cost-per-impression basis - $5 will get the seller 5,000 impressions of any product listing that matches the keywords they've chosen. Etsy pulls keywords from the title and tags of the listing to know which ads to display when shoppers conduct searches on the marketplace.

The first sale from a Search Ad was made within 30 minutes of the ads going live, according to Etsy Product Marketing Manager Natalie Schwartz. Twelve hours after the ad rolled out, Schwartz said the performance of the ads was very similar to that of organic search results, which was consistent with Etsy's projections based on months of testing and development.

Schwartz warned that sellers could make premature conclusions, both negative and positive, when looking at their Shop Stats too early. "While we love the enthusiasm around this data, we want to remind sellers that it is too early to draw any conclusions. We encourage people to read our recent post on understanding your shop stats if they haven't already." The page she referenced is found here .

Schwartz said Etsy is evaluating all feedback users are providing via Forums and Support. Users are weighing in on this forum post.

About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to

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