Good advertising makes you money. Bad advertising loses you money.
If you don't set up Etsy Promoted Listings properly, then Etsy Ads will be a waste of money. If you promote items no one wants to buy, or if you overpay for advertising, or if you don't know what items on your Etsy Shop do well, then Etsy Promoted Listings is a waste.
But if you know which items are your best sellers, and if you know what your maximum "Cost Per Click" (CPC) is, then Etsy Ads can be very effective to get your items to show up high in an Etsy Search result.
Here's how to make Etsy Ads & Promoted Listings work for you:
- Find out what your best-selling items is. Ideally, your best sellers sell at least 3 times per month or more. Only promote items that actually sell, not brand new items.
- Figure out how much you can afford to spend per listing. For instance, if your conversion rate is 1% on Etsy (1 Sale for every 100 Views), then you can calculate how much it will cost to promote your item. If your Etsy item is $20 USD, and you are spending $0.20 USD per click, then 100 clicks will cost you $20 USD in Etsy Ads just to sell one item for $20 USD, which means you will lose money. That's why it is important to find out what your normal conversion rate is (Sales per Views), and what you max CPC should be.
That's pretty much all there is to it. Promote items that sell well, and promote items where you can actually afford to spend money on Ads.