Why Etsy is surging, and what it means for holiday season
Early in the pandemic, Etsy made a name for itself as the destination for face masks. An army of crafters set about making the much-needed items, and Etsy put some of its marketing muscle behind the effort. Now, amid surging sales, Etsy is hoping its homemade items will attract consumers looking for a more thoughtful holiday gifting season.
“Buyers are now shopping with their hearts—it just doesn’t feel right anymore shopping on Amazon,” says Ryan Scott, chief marketing officer, on the latest edition of the “Marketer’s Brief” podcast. “In a world that’s increasingly commoditized, where everything is disposable, fast and cheap, Etsy fills that gap by providing items worth holding onto.”
Such a mission is apparent in Etsy’s new holiday campaign, which includes three TV spots telling three emotional stories. Etsy worked with 72andSunny, a new partner, on the effort.
“We did decide to tap into emotion,” says Scott, noting that the campaign focuses on the “power of a meaningful gift.”
In addition to the spots, which are running in the U.S., Germany and the U.K., Etsy is marketing on social channels such as Pinterest and YouTube, on podcasts, and, for the first time, on TikTok.
“Organically, TikTok has grown and there’s been an organic interest around Etsy,” says Scott. “The conversation is there.”
On the podcast, Scott also discusses popular retail categories that have seen an upswing on Etsy, like gardening kits and self-care items, as well as what’s ahead for holiday gift must-haves.
For the third quarter, Etsy reported a surge in revenue, which increased 128% over the year-earlier period to $451.5 million. The company also increased its marketing investment ahead of the crucial holiday period—Etsy spent $126.8 million on marketing for the third quarter, a 153% increase over last year.