Analyzing the Ad Funnel

This guide is for all ecommerce stores! There are specific tips for Etsy off-site ads and Etsy promoted listings.

Paid ads come in different varieties.

Some are driven by the phrases buyers search with – like Google Ads and Etsy Promoted Listings – and others are shown to target audiences that you define, like on Instagram.

These days, almost every ad network also uses machine learning (artificial intelligence) to try to optimize how your ads are shown and help them perform their best (and make sure you get the clicks that you’re paying for…)

But regardless of the mechanics, they all follow the same basic funnel of user actions.

Welcome to the Ad Funnel

This diagram connects the main metrics to monitor your ad campaign performance with the actions you can take to influence or understand the results.

Let’s dive into each stage!