Etsy Ads Performance Review – Cutting the Dead Weight Daily

We’ve just locked in your ad budget using a fixed-percentage model. If you haven't done that yet, go here and do that now.

But we’re not done yet. Not even close.

Because what good is a perfectly set budget if Etsy’s spending it on the wrong listings?

Let’s fix that.

The goal here is simple.

We want your ad budget flowing to the listings that convert—not to the ones just racking up clicks and costing you money.

This is why most Etsy sellers blow their budget. 

They let Ads run without checking performance daily. But you? You can be smarter than than 99% of Etsy sellers from today onwards.

Why this matters?

Running Etsy Ads without cutting underperforming listings is like filling a leaky bucket—you’re constantly pouring money in, but never seeing results.

And here's what most people don't get.

A bad ROAS doesn’t just hurt your profits—it blocks better listings from getting the visibility they deserve.

So this next move is how we free up your budget and tell Etsy to “Stop wasting my money—push my best stuff instead.”

Your daily action plan.

This plan helps you maintain a lean, profitable ad campaign by identifying and turning off underperforming listings—based on a revenue-scaled Click Threshold—while allowing Etsy to redistribute budget to listings with higher potential.

Stay in the Etsy Ads Dashboard.

You're already here if you followed the previous step.

Sort your listings by Clicks - High to Low.

We’re looking at the last 30 days—this is the default, and it’s what matters.

Start reviewing each listing’s ROAS.

  • If the listing has X or more Clicks and ROAS = 0.
  • Turn it off.

Simple. Ruthless. Effective.

How many clicks is X?

This is where most people guess… But we don’t guess here. We use data.

Here’s how to set a scalable click threshold that adjusts based on your store’s revenue.

The formula is this.

  • Click Threshold (X) = (30-Day Revenue ÷ 1000) × Base Click Factor.

You pick the Base Click Factor based on how strict you want to be.

  • Conservative is between 6-8 (new sellers, or those with small budgets).
  • Balanced is 5 (recommend for most sellers).
  • Aggresive is between 2-4 (experienced sellers, or those with big budgets).

Here's an example.

Let’s say your 30-day revenue is £1,215.19. You choose a Base Click Factor of 5 for a balanced approach, which is recommended for most sellers.

  • (£1,215.19 ÷ 1000) × 5 = 6.075 → Round to: 6 Clicks.

So, any advertised listing that has 6 or more clicks and zero ROAS gets turned off.

Why? Because it’s burning your ad budget without making you money. And Etsy will gladly keep spending on it… unless you stop it.

How this improves performance?

Each time you cut a weak listing, you do two things.

  1. Free up ad budget for stronger products.
  2. Improve your overall campaign ROAS instantly.

That’s how we get to a minimum 3:1 return on Etsy Ads—and actually make Ads pay for themselves.

And before you panic about 3:1 ROAS.

Yes, a 3:1 return sounds like 33% ad spend.  And yes, that sounds high.

But here’s what you’re missing.

The point of your Etsy Ads is NOT to make all your sales. It’s to create visibility, drive traffic, and boost your organic rankings.

Let me break this down for you...

The big picture strategy?

Your ads bring in the clicks. Those clicks generate favourites (even if the buyer doesn’t click directly). 

And on Etsy, favourites = gold.

Because favourites feed the algorithm, and that algorithm? It starts showing your listings more—organically.

That means more unpaid reach. More free exposure. More organic sales.

Here's a crazy insight most sellers miss.

Etsy buyers can favourite your listing without clicking your ad —and Etsy still boosts your listing because of it.

So even if a click doesn’t convert right now, it’s still doing work behind the scenes.

An important mindset shift.

Ads are a traffic tool, not your profit centre. Use them strategically—not emotionally. Don’t obsess over ROAS alone—the true goal is organic momentum.

Etsy Ads should.

  • Drive traffic.
  • Accumulate favourites.
  • Trigger organic algorithm boosts.

Many buyers favourite items they find through Ads but don't click—those favourites still impact Etsy's ranking signals and often convert later organically.

So your Ads fuel the engine, but your organic performance is what wins the race.

Done daily, this one step alone will clean up your entire campaign—and give your best listings room to shine.