Inside Etsy’s Creator Ecosystem w/ Monty Montalto

0:00There's always something to celebrate, right? or something that you can find on Etsy that feels special. Like, I always think of Etsy as a marketplace for self-expression. There's so many wonderful things that you can find.

0:17Hey, Monty, welcome to the show. How are you? Good. How are you, Alessandro? Thank you so much for having me. Absolutely. You know, today is going to be an interesting one, especially because we are, I mean, now that we're recording around, you know, all the holidays and we know how, you know, There is this blend between creators and selling and creating things that are not only online, but physical. And both of them sometimes, right? And people want it too bad directly from creators. So it's going to be absolutely an interesting episode. Before we get in, as you might know, we do this thing with our guests.

0:46It is called The Map, right? To learn a bit more about them. And it's basically divided into three main areas. It is the mission. What do you want to achieve with your work? The achievements. Any notable milestones, achievements that you are very proud could be in your career, your life, or both. And the last one is the purpose. So why do you do what you do? I love this framing, by the way. It's such a great way to get to know people. So for a mission, since I do lead brand advertising, influencer and social marketing for Etsy, I would say my mission is the same as Etsy's, which is to keep commerce human.

1:16So, you know, like we do that through our marketplace, but also through our marketing. We use a lot of human storytelling since the sellers are the foundation of Etsy and what makes it special. In terms of achievements, I would say personally, of course, It's my two lovely daughters, Ellie and Margo, ages 10 and 7. There's nothing I love more than watching them grow and explore the world around them with curiosity and creativity. And then professionally, I would say my best achievement is getting to lead the team I lead now. We've built a full funnel influencer and social marketing team, but also a content studio to support all of that work.

1:53So we've brought together different parts of the organization at one purpose. And like I said, of telling that human story, which is amazing. And the content studio is something we founded ourselves. So getting to work with those folks every day is probably my favorite achievement. And then in terms of purpose, I think, as I had alluded to earlier, like I get energized by creativity and curiosity. So like, you know, that can be nurturing my kids in that space or working with the team and, you know, helping people to discover the creativity of Etsy sellers, you know, because they're more than businesses.

2:29So many of our sellers are actually a business of one. You know, so their parents, teachers, you know, students, sons, daughters, they all have a story. And being able to tell that story to help them be successful is super rewarding. I love my job and it's, you know, it's meaningful work and that's ultimately in service of creativity. And, you know, you mentioned Full Funnel, right? So we know that in the past years, we moved from this very, you know, fractional type of situation where you saw something from a creator and then there was not a link working well, or maybe there was, you know, an embedded browser.

3:05Then you went on, like, it was very chaotic. And that fraction brings friction, right? And the friction doesn't help for the funnel because then you have car abattament. You have, like, people that maybe start the process of, oh, this is interesting, but I will do it another time because I don't have my car with me. but now you know with TikTok shop and many other like you know social media platforms that are helping that right they're going into that full funnel so let's explore a bit more you know when when we say this this idea of the full funnel right the commerce ecosystem how does it work like I don't know for you these days you said that you're building all of that can we go more in detail like from the let's say the start to the end yeah I mean the funny thing is right we always talk about the funnel which we still use that framework we still use it in a lot of our work, but in many ways, the funnel has collapsed or they call it a loop.

3:49You know, you go in and out. But at the same time, I think social media offers us the opportunity to go right from discovery to conversion, right? You sort of can skip all of those steps. Or like I do, sometimes you become distracted. You put your phone down, you go back, you come back, you get reminded, you know, you get retargeted and then you come back and rediscover what you're originally looking at. I mean, I think still like, you know, thinking about it in that framework is super helpful, right? So we use like, we leverage the upper funnel, you know, for cultural relevance and for, you know, brand consideration and then mid funnel more for like interest-based.

4:29So exploring and expanding category considerations of what you can find on Etsy. And then with lower funnel is obviously performance driven, right? So leading to those conversion and sales. And I think influencers and creators are so effective for brands, right? At the end of the day, it is a tactic, you know, that's been used for many years, you know, word of mouth advertising, celebrity endorsements. But I think social media and the connection that it creates and the intimacy that it creates, you know, has really changed things, but also become a really good lever for brands to use. You know, like I was saying earlier, I mean, the nature of shopping itself has transformed so much, right?

5:07Social media is becoming less social, right? It's less about the people in your network and more about, you know, it's basically an algorithm driven, like entertainment and just like, and discovery engine, right? So, you know, we're discovering things, we're engaging with it. And, you know, often this leads us to put brands and, you know, and creators into the mix. And also, as I was mentioning, that behavior is like nonlinear, right? You can go, you can jump the funnel, you can skip back, you can come back up. But, you know, that journey is continuous. That and speed as well, right? The whole journey that used to take, you know, you'd have to see a TV ad and then go to a store and, you know, maybe come back.

5:50And, you know, that's really just changed it in that within seconds, I've discovered a brand and made a purchase, which is really great. But, you know, I think creators really just creators and influencers really, you know, bring a unique element to the table as like a tool for marketing, right? Because, you know, it's that human piece that's so authentic and unique. You know, they bring something that I think a brand itself could not bring to the table, right? That and, you know, so much of what we experience and what we consume is based on identity, right? I'm a father. I enjoy bird watching.

6:24I also have many music interests. So all of those things allow, like, give me a place to discover and engage with content based on those interests. That and also trust. We know that as a result of the expertise in those communities, so many people often trust things that they see from creators they follow or even just UGC, sometimes more than people in their direct network, right? Because they may know more about something than somebody that I know, right? Or be more of a deeper expert or share an interest that I share that creates that affinity that makes them like an authentic and trusted voice within my community, which obviously extends to online.

7:05And then I think last, it's most importantly is the creativity, right? So the creativity that those creators bring to the table in form of self-expression. So it could be by building those communities through like authentic connection to people or just, you know, engaging with a piece of UGC that has broken through because of high engagement and because it's such entertaining content. Now, this is fantastic. And, you know, I sanded, like I marked down like a few words, keywords that you said. At the beginning, right, we were saying about the story, right, who's behind actually like selling. That's very important.

7:39So the identity, right, as you said, many of these people are, you know, either solopreneur, like creators working by themselves, they have their own strong, you know, identity in the space, trust absolutely important right because it's something that again it doesn't come from a conglomerate from a big store you really want to trust this person right in terms of the quality in terms of knowing that you are aligned with the person and then they credit this side right so i'm curious like how these days creators especially on etsy right are combining all the things together and how etsy is is helping right i know about the etsy creators collective so can you can you tell us a bit more about again how you're helping to putting together all these very crucial, you know, foundations, right?

8:16To be able not to be, again, only be sellers, but having an identity, creativity, as we said, trust and a story behind and put them all together. So, you know, as I said, like sellers are the foundation of our business, right? They're the core of everything that we do and the thing that gives our work meaning and purpose and make Etsy like a truly special marketplace. So Etsy's creator collective started as a social affiliate program, right? So creators could sign up, you know, talk about Etsy products and drive a commission. But as I mentioned, we're like moving more and more up the funnel, moving into more meaningful and deeper and lasting partnerships.

8:53And this has allowed us, which, you know, as mentioned, we've been reorganizing the team to bring the brand piece as well as the performance piece together to truly make it full funnel and connect those creators. But also, like I said, to build lasting relationships, not just with the creators, but with the communities that they represent, you know, of which many Etsy sellers are members of Creator Collective as well, because they are obviously creators in what they do every day, but some of them are also social creators, but not all, right? So what it does is it gives us another way to drive discovery of the unique items of Etsy's millions of sellers, and also to give them a new platform and a new way to talk about it.

9:36So I think the way that we've been thinking about it through storytelling, you know, every piece of content is a meaningful part of that story, you know, in elevating Etsy sellers and, you know, and their creativity. Hello, is your brand ready to amplify its reach? Well, the Influencer Marketing Factory is here to do just that. We are a global influencer marketing agency helping brands ignite their growth from influencer identification to campaign strategy, handling legalities and agreements to managing shipping and logistics. We have it all covered. We work with hundreds of brands across different verticals from Fortune 500 companies to DTC brands.

10:14And we don't just stop there. With detailed ROI analysis, we help brands like yours measure success, transforming impressions into actionable conversions. You can find us at theinfluencermarketingfactory.com or just search Influencer Marketing Factory on Google. And, you know, these have a couple of questions. So maybe I don't know if they're going to be related, but I would really love to hear also if you have any, you know, relevant examples, right, of creators participating in this program, you know, because this podcast is all about actionable items, right? So also for people listening, like what are the ones that are successful?

10:45And the segue of this question also, it is you just said about long term, right, relationships. We can see that more creators, no matter if they're sellers or not sellers, we're going away from the one-off to, you know, again, long term. And we'd love to also hear from you if you either have any examples of that or what do you think that is the best way to create that long relationship compared to, again, a one-off, thank you, goodbye, I'm going to promote something else later on. Instead, I'm actually going to double down on something specifically so that people associate me with this specific thing and they know me for that.

11:15Let's start with the examples, right, of creators that are participating in your program. Anything that you are really like, okay, this was successful for this, or maybe you don't know the why, but some numbers or some key studies that you can share with us. You know, what we've, I think you were also talking about like the ways in which sellers, like creators can participate in the program, right? So we partnered with them in many ways, right? We said there's first like there are like more traditional like lower funnel affiliate programs. But also what we're increasingly doing is working with them, not just to market the content, but even like sometimes enlisting them as co-creators.

11:52Right. And working with directly with Etsy sellers to curate a lot of what, you know, a lot of what the best is can be found on Etsy for inspiration, but also to co-create. in which sometimes we've partnered with creators to design or like co-design special pieces, many of which are like limited edition. And we can work with them to, you know, create something that's truly authentic, but also very like limited, right? So when we're working with creators who do have a deep community, like this year, we actually partnered with Rhett Link from Good Mythical Morning on YouTube. and they created a like a really unique custom collection that was just for their fans right so it's like a plate with Rhett's dog on it right and his dog's like this like goofy little like adorable dog but it's like an inside joke for the fans so they partnered with an Etsy seller created like a beautifully designed plate and you know the fans could then go and buy that as part of the collection.

12:56And then beyond that, they also curated their own collection of Etsy items that felt like they uniquely spoke to their community, right? So some of the more like, you know, wacky and like interesting things that you can find on Etsy, like one of them was a lemon that had a little eye in it and things like that, but that some seller made, right? And now they're elevating that product to their community in a really unique way. So our partnership with them actually was a full year this year that had key moments that stretched from Father's Day throughout the summer all the way into the holiday season.

13:31So our collection with them will be launching this month as well. So, you know, I think having those partnerships, just especially where there's like a genuine overlap, like, you know, and like I said, that authentic connectivity, you know, really just helps to build a foundation of a meaningful relationship that can go on for a year or even across multiple years. And then, you know, in other ways, we partner with creators, you know, we engage with creators in months long or years long co-creation, you know, campaigns where we contract them to create more mid or upper funnel content for us that we will roll out through different periods according to our calendar and our brand priorities that that's uniquely in their voice, like so that, you know, we can partner with the most talented creators that can create breakthrough content, but also with minimal intervention from us, right?

14:22We brief them for the year. We give them, you know, some guidelines and, you know, where Etsy's focus is in this moment. And then they sort of create to the brief, which has been a really successful format for us as we move up the funnel as well. Part of that, right, the second question, it was about the long term, you know, relationship. You kind of touched on that because you said, you know, yearly agreement with some, like, you know, maybe spikes of certain things here and there. so are you going more in the direction of the let's say always on with some either seasonality or maybe there is an event happening related to both the creator or maybe someone else like an industry like like i'm curious again to see if you are noticing more going in that direction where there is always an idea of you know this co-creation that being always on with maybe against something specific or it's still more either seasonal or event-based for the majority with your creators and they still have to go in the, let's say, always sound mode?

15:15I mean, I would say it's a little bit of both, right? You leverage, you know, we leverage the creators in the way that's most authentic to their voice, right? So I imagine, like, especially for us, right, there's always something to celebrate, right? Or something that you can find on Etsy that feels special. Like, I always think of Etsy as a marketplace for self-expression. There's so many wonderful things that you can find. And so working with creators according to our calendar, but also just setting them free to find and discover the things that are unique to them on Etsy, you know, is a big part of those collaborations.

15:52And still in the co-creation, how do you make it successful? Because, you know, many times, right, there is this thing that, as you said before, you want that is still, you know, authentic and it's still something that comes from, you know, the person, right, with their story behind and everything. But now you're co-creating, right? So I'm also curious, right? Where should you say no to something or say, yes, I trust you on that? Like, where is the split, right? Because the co-creation is a great concept, right? But I'm curious to see that, again, have you identified a formula for creators to do it in a smooth way without getting any hiccups or roadblocks during that?

16:26Like, is there a framework that you maybe, you know, to facilitate that or is still in process and each person is different when it comes to co-creation? Yeah, well, I mean, I would say the best way that we do that is by trying to support the creators, right? As I said, Etsy is a marketplace with tens of millions of items, right? From 8 million sellers. What we can bring to the table is helping to curate the best of Etsy sometimes to give them things to choose from, right? Or in the case where we are doing a partnership, helping to find the right seller to pair them with, right? So what we bring to the table is knowing our marketplace, knowing the inventory.

17:07But even that doesn't know, I mean, isn't even always the model. Sometimes, you know, the creators really like to roll up their sleeves and get into Etsy and, you know, go down a wormhole. We actually worked with, last year, we worked with Kacey Musgraves when she launched her new album. And sort of the way that we partnered with her was that, you know, the collaboration with Etsy was an extension of the album launch. And one of the pieces of that was a curated collection of items from Etsy. So we pulled a lot of items for her to choose from. And Casey actually went and took the time and went into Etsy and found tons of items that we didn't even know were there or hadn't discovered that were such a great fit for the aesthetic and the inspiration for the album that it really elevated the whole collection and the experience.

17:56And along with that, we paired her with a New York based charm seller to release a limited edition line of charms that launched with the album as well. So it was sort of a creative extension of the album itself, which was great. But like I said, some folks like to have a little curation done for them. But many of them like to go out and discover on their own. And a lot of times in our partnerships, they will find things on Etsy that they want to do. But I think where we can be helpful is just being there for support to help them to sort of take a lot of the friction out of the work and out of the discovery.

18:33So it's always a partnership every step of the way. And for 2026, are you thinking to either double down on certain areas? Like I noticed that there is something that, you know, you're very excited that you want to help creators and sellers even more. Like I'm curious to see like if everything is now smooth or if you think there are some things that might be better or overall maybe it's something that is already working well but could be always working better and then for 2026 you have certain plans. My team's focus for 2026 is discovering, right? So it's being everywhere that we know that shoppers are discovering, right?

19:07And that's not just social channels. That could be anywhere they are, right? Anywhere they're showing up. So we just actually launched a YouTube affiliate program this year, which has been super exciting. So we're seeing a lot of great momentum there. This year, we started actually also some early collaborations with people on Substack, which has been really great, right? That's a perfect platform for Etsy, right? It's niche creators, right, who are curating and have like a deeply engaged audience in a specific focus area, right? So if you have a newsletter about home furnishings, it's a great place for Etsy to partner with Etsy and help to discover things that are truly unique, but also made by real people.

19:54We've discovered that there are so many folks already doing that. So to partner up with them, right, in a way where they're seen, rewarded and compensated and not only that, but elevated by our own channels as well, we found can be a like really beneficial partnership. So I think we'll be really leaning into looking for new channels to show up in, as well as a big focus is going to be like deepening cultural partnerships, right? So working with niche creators in new communities, maybe that we haven't reached before, you know, that could be in verticals like gaming or things like that, where you may not traditionally think of Etsy.

20:32But like there's there's an Etsy for everybody. Right. So we're really looking to deepen our reach into those niche communities and help folks to really understand what can be discovered. And then also within that cultural element, I think, is continuing to expand, you know, working on those cultural collaborations. Like this year, we also did a partnership with four WNBA players where they worked with Etsy creators to co-design like press on nails or custom necklaces in those way. Again, like helping us to reach a new audience, right? Female sports fans, but also bringing those, you know, the talent into the mix to create with the Etsy sellers as part of a collaboration.

21:12And then the other thing that I would say is a big focus for us this year, which we touched on a little bit earlier, is reducing that friction for creators, right? We're looking into launching branded storefronts as part of Etsy that not only that will, you know, not only that will deepen those partnerships with the creators, but also will help them to make curation easier and remove barriers and how they navigate and how they discover and how they curate their items for Etsy. So giving them a more clear branded presence to make our catalog easier to navigate and to recommend. You know, I think our biggest focus will always be elevating and highlighting our sellers and their unique creations.

21:53So any partnerships, any way that we can go to do that, that's where we'll be. Right. So we featured Etsy sellers in our TV ads. We've put them on billboards in Times Square. We've paired them with celebrities or just showcasing their content. But continuing to connect our community of creators with the world of creators creating every day across different channels, you know, that's, I think, what's going to be our biggest focus for next year. So deepening that connection between our community and conversation out in the world. Love it. I mean, it makes sense, right? Because you want to cross channel the most possible, as you said, right?

22:29Like, especially these days we are seeing, and we talked about this in the past, we also went out with, you know, recently with a creator IRL report, right? And we can see that there is these appetites, right? For, again, as you said, you know, cross collaborations, maybe between creators that have different audiences. And now it's fantastic because you're bringing people together that maybe didn't even know about each other, right? And then you're bringing online to offline, as you said, like, you know, maybe bring into billboards, right? And then the creator can take a picture that I've been seeing a lot of people taking pictures in Times Square.

23:00They are so, of course, part of the moment and then bring it back to online. So we'll be seeing a lot of these exchange, online to offline, offline to online. And communities that didn't know about each other start talking or starting being involved more often. As you said, at the beginning of the conversation, it's not really just social anymore. It's about not just the people that you know, but about the things that you like. And maybe you start learning about things that you didn't even know about because of this collaboration. So I think that all of this is, you know, it's fantastic. Outside of the selling things, like just the curiosity, right?

23:29The being always with the brain learning new things, I think that is fantastic, to be honest. Yeah, it's actually my favorite thing about the job, like reaching those unique communities. And there's just always something new and always a new place to be and always new ways to find and deepen those collaborations. I love it. Motti, thank you so much. This was fantastic. You know, wish you the best for all these new initiatives. I will follow the journey along. Yeah, thank you so much for having me. I really appreciate everything, Alessandro. Absolutely. This was the Influence Factor from the Influence Marketing Factory and I'll see you in the next episode.