ETSY SUSPENDS BRAND CAMPAIGN, SHIFTS MARKETING STRATEGY

Etsy operates as a platform that matches creators selling their original products with consumers looking to buy unique goods. The company went through major transformations this year under the lead of former eBay executive Josh Silverman, who cut down labor costs by 23% and ramped up marketing costs by 60%. Now Etsy has decided hit pause on branded campaigns and will instead invest the money in digital user-acquisition marketing. The company has introduced new tools for sellers meant to help them acquire more buyers on their own.

Vivaldi CMO Agathe Blanchon-Ehrsam told AdAge that Etsy was making the right move by halting investments in branded campaigns with large media buys. “Etsy should focus on its customer experience and in-product marketing that will create scalable interactions, drawing in new buyers and sellers through network effects.” The company saw a rise in revenue and net income over the past year, but the threat of Amazon’s Handmade unit now looms on the horizon. Etsy provides a unique offering that transcends just products, but the company will need to continue its growth streak if it wants to remain competitive against the giant that is Amazon.