Etsy Ad Pricing: Comparing Them to The Competition
With Etsy Ad’s going live on Tuesday, there has been a lot of talk about CPM or cost per thousands of impressions with their ads. We thought we would provide you with a little comparison of CPM for traditional and online advertising, because knowing the facts can help you make informed advertising decisions for your Etsy business.
Traditional advertising (local TV ads, national magazines, radio, and outdoor advertising) range from $10 per 1,000 impressions all the way to $2.26. Online advertisements by major news organizations demand a high CPM of $6.99, followed by entertainment websites and online gaming sites. All of these types of ads are typically over $2.68 CPM.
Web portals are sites like Google, Yahoo, and MSN. They demand about $2.60 CPM. Social media sites like Facebook currently price their CPM at around $0.56 CPM. Etsy is coming into this CPM market at around $1.00 (or maybe a little higher or lower) – we don’t know yet since it is not live yet.
This means that Etsy ($1.00) thinks they demand a premium over social media CPM ($0.56), but are not as in demand as a Google/Yahoo type ad. Is this pricing legit? That is yet to be found out in the coming weeks.
If this pricing holds true, that could mean higher advertising revenue per thousand impressions than social media sites. Does this pricing mean that Etsy is positioning their business to make attractive advertising profits to improve their bottom line? Investors love advertising revenue and this would make Etsy much more attractive for an IPO (Initial Public Offering) or buyout. . . . just some speculation here!
A higher price than social media impressions also makes some sense because supposedly the people looking at this advertisement are really interested in buying (since they are already searching on Etsy) as compared to those individuals just surfing Facebook.
I’ve also included pricing for HeyHandmade.com, since it is a relevant comparison point for handmade artists to consider when making smart advertising decisions.
If you want to learn more about a stratagem to maximize your Etsy ads, you can enter your email address below to get up to the date information as we work out a strategy to apply.
These CPM prices come from:
Comscore.com – A 2010 CPM pricing summary report (Newspapers online, Entertainment Websites, Online Gaming, Web Portals like Google, Yahoo, MSN, Email, Social Media)
Entrepreneur.com – A 2009 CPM summary article (Local TV ad, National Magazine Ad, Radio, Outdoor advertisements)
Etsy Stated Average – They are selling “about 5,000 impressions for $5.00” or $5 divided by 5 (thousand)
Etsy Keyword Ad List Average – This is just a mathematical average of the 5,168 items listed here by Etsy.
Hey Handmade.com – It is anticipated that each item will receive 400,000 impressions from October 15 – January 15th. The cost is $54. $54 divided by 400 (thousand).