The Etsy Ads Update — What Works Best and Why
- Marcy Gardner
- 6 days ago
- 7 min read
Hey — Jared here from Grow My Etsy Shop. I’ve been poking around a bunch of Etsy ad accounts lately and noticed Etsy rolled out some sneaky changes. Some of them are tiny tweaks, some are promising, and a few make me go, “Wait… what?” I want to walk you through what changed, what actually matters, and — most importantly — what you should do about it right now to keep your ads working (and your shop growing).
Quick overview: what changed
At a glance, the big updates you’ll want to be aware of are:
Etsy’s ad interface now uses the word “campaign,” but you’re still stuck with a single campaign level for now.
When setting up ads you’re forced to choose one of three goals that will actively affect how Etsy spends your budget:
Increase orders (aggressive spend)
Balance orders and ROAS (the middle ground)
Increase return (maximize ROAS, conservative spend)
The detailed stats workflow changed slightly — you now have to drill into Views to see which keywords are producing traffic.
Your shop front got shuffled: Star Seller is less prominent, announcement bar moved lower, some shops temporarily lost visible profile photos.
Color variations now show as little swatches on listing thumbnails — a very nice UX improvement.
A major positive: when shoppers scroll on a listing, the reviews are followed immediately by a prominent shop blurb with logo, shop name, and four featured items — giving you a stronger shove into your shop before Etsy shows competitors.
Etsy appears to be testing placing ads sprinkled into feeds (more organic-looking ad placements), and some accounts are seeing portrait-style image crops more often — keep an eye on image composition.
Increase orders (aggressive spend)
Balance orders and ROAS (the middle ground)
Increase return (maximize ROAS, conservative spend)
Let’s dig into the new ad objectives (and which to pick)
The new objective choices actually matter. They change how Etsy’s algorithm spends your money. So here's the no-nonsense breakdown, with the situations where each choice makes sense.
1) "Increase orders" — The pedal-to-the-metal option
What it does: Etsy will be aggressive with spend. Think Facebook-style: if you give it $10,000 it will find a way to spend $10,000. It will widen the keyword net, try riskier placements, and mainly focus on visibility and volume rather than ROI.
When to use it:
Seasonal or time-sensitive products — when visibility equals sales and you need to win during a short window (think back-to-school, holidays).
Hot trends — if you have a product that’s printing money and you already have proof it converts massively.
If you’re ready to actively monitor and optimize daily — this is not “set it and forget it.” If you try this, watch it.
Quick caveat: I don’t recommend this for most sellers. It can work brilliantly if you know exactly which listings convert and you’re trying to milk a short-term opportunity. If you’re trying this, use previous ad/organic data as your safety net.
2) "Balance orders and ROAS" — The sweet spot
What it does: This is the middle option: Etsy will attempt to get you orders while being mindful of return on ad spend. It may sometimes under-spend if it thinks spending more would harm ROAS.
When to use it:
For about 80–85% of Etsy sellers — this is the default, practical choice.
If you want steady growth and predictable ROI without gambling the budget.
Scaling tip (fast version): If you set a $50 daily budget but Etsy only spends $20, lower your budget to $20. Let Etsy get comfortable at that spend, then gradually increase it. Matching current spend and scaling slowly helps the algorithm adjust.
3) "Increase return" — The conservative option
What it does: Etsy prioritizes ROAS and will try to spend the least amount of money while delivering the highest return. That can mean tiny weekly spends with good-looking ROAS numbers.
When to use it:
If you’re terrified of losing money on ads and just want to make sure what you spend is profitable.
If your niche is extremely low-traffic and hyper-specific — a conservative approach might give you a few profitable clicks without wasting budget.
Why it’s not great for growth: The algorithm might spend $4 in a week, deliver a sale, and put up a great ROAS — but you can’t scale a business on $4/week. Use this mode mainly for profit safety nets, not for aggressive growth.
Practical decision framework: Which objective should you choose?
If you have proven winners, a time-sensitive window, and can monitor constantly → consider “Increase orders.”
If you want sustainable growth, predictable results, and you’re not willing to gamble your ad budget → pick “Balance orders and ROAS.” (My default recommendation for most sellers.)
If you’re just dipping your toe in, are risk-averse, or your niche traffic is tiny → pick “Increase return.”
Other interface changes and what they mean for you
Detailed stats and Views
Previously, category of views was more visible in the summary. Now you have to click into Views to sort from most to least and see which keywords are driving eyeballs. It’s a minor workflow change, but it nudges you to be a little more deliberate about where the traffic is coming from.
Action item: Check Views regularly. Identify high-traffic keywords that don’t convert and decide whether to keep or remove them. High views with low conversions is a signal to refine targeting or listing content.
Shop front changes: Star Seller, announcement bar, and profile photos
Some elements moved or got de-emphasized:
Star Seller is less prominent — many sellers are shrugging at this (I’m not sad to see it fade into the background).
The announcement bar is lower on the page — it’s not the magic megaphone some people thought it was. Only a small portion of buyers actually see it.
In some tests/profile groups, profile photos didn’t show up on the shop front — Etsy seems to be making the browsing experience less “personal.” I don’t love that trend, but it’s not universal.
Action item: Don’t rely on the announcement bar for big changes or store-wide messaging. Use it for small supplements, but prioritize high-converting listings and strong product visuals.
Variation swatches — little circles, big impact
Color or variation swatches now display directly under listing thumbnails. This is a big UX win. Shoppers can instantly see that your product comes in multiple colors and are more likely to click to choose options.
Action item: Ensure that your variation names are accurate and that your thumbnail clearly represents the most popular or visually compelling variant.
The single best change: the shop blurb after reviews
Big champion here — when shoppers scroll on a listing and reach reviews, Etsy now shows a prominent shop blurb with your logo, shop name, and four featured items before listing competitors. That’s huge.
Why it matters:
It gives you a second chance to keep shoppers inside your shop instead of losing them to competitors.
It’s prime real estate — you can showcase diversity, upsells, or complementary items.
You control these featured items — use them strategically.
Action step checklist:
Pick 4 featured products that represent your shop well: best sellers, complementary items, or high-margin upsells.
Use those images to create a mini shopping narrative — e.g., show how a set works together or multiple product angles.
Keep the items updated seasonally (or when you launch something new) so the blurb feels fresh.
Ads sprinkled into feeds — why this matters
There’s chatter and some testing about Etsy inserting ads more organically into browsing feeds (rather than boxed-off ad sections). I’m a big believer in this. Why? Because when ads look like content, they tend to convert better — users aren’t immediately trained to skip them.
Analogy: Google used to highlight paid search with a pink “salmon” shade and shoppers learned to avoid them. Mixing ads in reduces that “skip the ad” reflex and can lift overall campaign ROI.
If Etsy tests this widely, ads could become more effective — but it also means you need to make your ad creatives blend in seamlessly with organic content. High-quality imagery, native-feeling copy (yes, even product titles matter), and authentic visuals will win.
Image aspect ratio changes — watch your crops
Some accounts are seeing more portrait/mobile crops. These tests often come and go, but while they're active you want to avoid important content being chopped off:
Keep key product details away from the extreme edges of images.
Be cautious with on-image text — it can get cropped and illegible.
Preview how your images look on mobile before pushing big ad spends.
Action plan — what to do this week
Log into Ads and confirm which of the three objectives you’re using. If unsure, switch to “Balance orders and ROAS.”
Check Views in Detailed Stats — find keywords with lots of views and low conversions. Decide to pause or optimize those listings.
Update your 4 featured shop items to control the narrative shoppers see after reviews.
Review listing thumbnails for variation swatches and make sure they display your best options.
Preview mobile crops for your listing images — adjust if text or product details are getting cut off.
If you plan to test “Increase orders,” prepare to monitor closely and use historical data to identify winners.
Final thoughts — dream big, act small
Etsy’s changes are a mix of good, meh, and potentially fantastic. The single biggest win I see is the new shop blurb real estate — use it. The ad objective tweak forces us to be thoughtful about strategy rather than clicking “budget” and wandering off. Most sellers will be best served by the middle option: balance your orders and ROAS.
And hey — don’t panic if things look different. Etsy tests half the internet daily. The winners will be the sellers who pay attention, make small experiments, and optimize deliberately.
If you like this kind of inside-the-ad-account breakdown, I’ve been working on some new stuff that shares more of this hands-on knowledge without committing to a full, month-long program. Stay tuned — I’ll share details soon.
Diggity diggity digg" — remember that? Middle option, most of the time. You're welcome.
Until next time — keep testing, keep optimizing, and keep being ridiculously good at what you sell.
Extra tips & next steps
If you want a quick checklist to act on right now, use this short workflow: log into Ads, confirm your objective, check Views for high-traffic/low-conversion keywords, update your four featured shop items, and preview mobile crops. Repeat weekly and track small changes.
Audit one listing per day: check thumbnails, variation swatches, and title copy.
When testing “Increase orders,” set a clear time window and conversion targets before you start.
Rotate featured items seasonally — fresh imagery keeps the shop blurb effective.
Pro tip: Keep a running notes file with dates, the objective you used, daily spend, and any changes you made. After two weeks you’ll have meaningful patterns that tell you what’s actually working.
If you’d like, I can draft a customized two-week ad test plan for your shop (no URLs needed) that lays out budgets, which listings to test, and how to evaluate results. Just say the word and tell me your top three listings to focus on.
Work with me!
I offer one on one coaching
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