Make data-led decisions
Read the Signals
Metrics like ROAS, CTR, and ACoS tell you which listings are worth your focus. Acting on this data makes your marketing spend smarter.
Learn
In Step 6, you launched Etsy Ads to bring traffic. Now it’s time to make sense of the numbers those ads generate. Reading the signals helps you decide whether to scale, tweak, or pause your ads. The ads are only useful if you know how to read the results. Three key metrics will guide your decisions:
- CTR (Click-Through Rate): The percentage of people who saw your ad and clicked it.
- ROAS (Return on Ad Spend): How much revenue you earn for each dollar spent on ads.
- ACoS (Advertising Cost of Sale): The percentage of sales spent on ads. Lower ACoS means more efficient spending.
Together, these numbers tell you which listings deserve more budget, which need improvement, and which should be paused. The goal is to use data to focus your efforts where they pay off most. Disclaimer
The video above is an extract from Selling on Etsy Webinar - Ep 1.
To watch the full webinar, click here.
Practice
You’ll analyse your ad reports and take action based on performance.
Open ad reports for all active listings.
Identify listings with ROAS >2.5x and CTR >2% → mark these as winners.
Increase daily spending slightly on the winners.
Pause ads on listings with low CTR and poor ROAS.
Look for common traits among winners (e.g., thumbnail style, price point).
Write down notes on adjustments/improvements to make for weaker listings.
Finish this Challenge
You’re ready to move forward when you’ve:
- Reviewed reports for all active ads.
- Scaled at least one top performer with higher budget.
- Paused or adjusted all underperformers.
- Documented your reasoning for each decision.
If you cannot clearly explain why you scaled or paused a listing, revisit your data until your choices are backed by numbers.