I am by no means a marketing guru, nor will I claim to have any experience in advertising beyond the one public relations class I was required to take for my major in college. That said, after reading through the Etsy forums in the last few weeks a two major things have become apparent to me.
1 - People don't understand what the ads are all about - And for good reason. While Etsy did a decent job (in my opinion) of explaining HOW to set up an ad, they have done a fairly poor job of explaining exactly how these ads can and will benefit sellers. Many people are confused, especially after the recent switch to relevancy as the default search, about how any ads they may take out will impact their shop and sales.
2 - People are impatient - And again, for good reason. With so many companies switching to online only or expanding their reach online, it's no wonder people just assume that all they need to do to be successful on Etsy is set up shop and let well enough alone. Nothing could be farther from the truth. It takes work, dedication and patience to be successful at anything on the Internet, not just selling on Etsy. This even includes the "overnight sensations" and things that have gone "viral" quickly. It takes getting whatever it is you're doing, from selling merchandise to writing poetry to sketching comic books, in front of the right person at the right time to be successful and that my friend requires patience.
All of that said, I have a few hints and suggestions for fixing these problems.