How to Analyze & Optimize Your Etsy Ads Using the ProfitTree Advertisement Tab
The Advertisement tab inside ProfitTree is one of the most powerful tools for understanding whether your Etsy ads are actually profitable. This guide walks you through how to use it effectively—how to read the data, which metrics matter most, and exactly how to decide which listings to keep advertising and which to turn off.
1. Ensure Your Advertisement Data Is Synced
If your ad data needs to be refreshed, you’ll see a notification inside the Advertisement tab prompting you to resync.
How to Resync Your Ads Data
Open your ProfitTree Chrome Extension.
Look for the sync button (it will appear if syncing is needed).
If the extension says “All synced — your data is up to date,” your numbers in ProfitTree are current.
Keeping this synced ensures your ad performance analytics are accurate.
2. The Most Important Metric: TACoS
Inside the Advertisement tab, the most valuable column is TACoS, which stands for Total Advertising Cost of Sale.
What TACoS Means
TACoS measures the percentage of total listing revenue (paid + organic sales) that is being spent on ads.
Formula:
Advertising Spend ÷ Total Sales = TACoS %
Why TACoS Matters
It shows the true profitability of a listing after ads.
It helps you decide which ads to keep running and which ones to pause.
A lower TACoS indicates more profit.
Your goal:
➡️ Keep TACoS as low as possible while maintaining healthy sales.
3. Choosing the Right Time Range for Analysis
Your ideal time window depends on:
How fast your ads spend
How quickly your listings generate sales
Examples:
High-ticket items: Spend slowly → analyze larger windows (60–90 days+)
Low-cost digital downloads: Spend fast → analyzing 30 days may be enough
4. How to Determine Your Target TACoS Threshold
Every shop will have its own acceptable TACoS percentage.
How to set your TACoS goal
Compare:
Your overall shop-level Ad Cost % in the ProfitTree dashboard
Your shop’s average profit margins
Example from the transcript:
Shop Ad Cost % (last 30 days): 19%
Shop Profit Margin: 25%
→ They aim to keep TACoS below 20% for individual listings.
If you want to increase profit further, you can:
Tighten your TACoS goal (e.g., from 19% → 14%)
Turn off listings not beating this threshold
5. Analyzing TACoS Over Different Time Periods
Before making decisions, always compare TACoS across multiple windows.
Example Scenario
A listing shows:
40% TACoS in the current 3 months
→ High, and a red flag.
But you must also check:
Profit margin before ads
Whether this TACoS is rising, falling, or stable over time
6. Step-by-Step: How to Evaluate a Listing
Step 1: Adjust your time window
Set the calendar to a 3-month period (or longer if needed).
Step 2: Check the listing’s TACoS
Example:
TACoS = 36% (last 3 months)
Step 3: Open the listing to check the pre-ads profit margin
Example:
Pre-ads profit = 58%
Step 4: Calculate post-ads profit
58% (profit margin)
− 36% (TACoS)
= ~22% net profit
➡️ Still profitable. You may choose to keep this listing running.
7. When to Turn Off a Listing
Here’s an example where the numbers tell a different story:
Listing B:
TACoS: 40%
Pre-ads margin: 48%
Net profit: Only ~8%
➡️ This listing is no longer healthy.
The ad spend is eating nearly all profit, so turning off this listing is recommended.
8. Compare Current TACoS to Past TACoS (Trend Analysis)
This step is crucial and often overlooked.
Why trends matter:
A listing might show high TACoS now, but:
If TACoS is decreasing, it could be improving → keep it on.
If TACoS is increasing sharply, the listing may be dying → turn it off.
Example from the transcript:
June–Sept TACoS: 22%
Sept–Dec TACoS: 40%
This is a dramatic increase, meaning:
Conversion rate is dropping
Listing may be losing relevance or competitiveness
Continuing to advertise it is likely wasting budget
➡️ Decision: Turn this listing off and redirect spend to stronger performers.
9. Understanding Listing “Lifespans”
It’s normal for listings to:
Perform well initially
Decline over time
Lose ad efficiency as trends fade
ProfitTree helps you identify these shifts early by:
Showing long-term TACoS changes
Showing profit margins before ads
Comparing performance across time windows
10. Final Takeaway: How to Maximize Your Ad Profit
By analyzing:
TACoS
Profit margins
Multi-month trends
You can ensure:
Every dollar spent on ads is producing a healthy profit
Your budget flows toward high-return listings
Poor-performing or declining listings don’t drain your ad budget
Ready-to-Use Checklist
✔️ Sync your ads data
✔️ Set a target TACoS based on your shop’s profit
✔️ Analyze 30–90 day windows
✔️ Compare TACoS vs. pre-ads profit
✔️ Turn off listings where TACoS eats the margin
✔️ Review TACoS trends over multiple time periods
✔️ Reallocate budget toward listings with the highest ROI