Last week Etsy announced they are making a change in the methodology that tracks ad attribution and spending.
Currently, Etsy attributes sales to an ad when:
- 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
Beginning October 4, this will change to a single attribution methodology to attributing a sale to your ad campaign if a buyer clicks on an ad for an item, then purchases any item from your shop within 30 days.
WHY THE CHANGE?
Etsy states that it is bringing the attribution model in line with other advertising services offered online. They also say they believe in the long run this will more accurately reflect revenue impact of ads on your business.
No change has to be made as the ad budget you may have set in your store for Promoted Listings, and Google Shopping remain the same.
The company is updating historical data to this new model, so you can see how previous ad spending impacted your sales.
Therefore, it is a good idea to take another look at your ad spending strategy for your Etsy store after the change. You may wish to make some adjustments to maximise your ad budget for best results.
GOOGLE SHOPPING IMPACT
For those sellers that use Google Shopping as part of their campaigns, they may need to review ad spending on continuing basis for a while.
As the new methodology attributes more sales to Google Shopping ad spent, the algorithm may increase ad spending more aggressively. So you may see more of your daily budget on Google Shopping being used.
Of course, this can also be attributed to more competition for the ad space, so that is why you need to review Google Shopping on a more frequent basis to make sure you are getting the right sales for your budget.
To help you with Google Shopping, Etsy is updating the marketing dashboard and under “Orders from ads”, you will see in detail which orders were placed from Google Shopping.
If you sell on Etsy, we would like to hear your comments on how you feel this will impact your ad spending. Please use the comments section below.