In the Amazon competitive landscape, PPC dayparting is a powerful tool that helps to become more efficient in advertising campaigns.
What is Dayparting?
It is a strategy that helps optimize performance by considering the specific time or day of the week in which ads are more likely to convert.
By utilizing dayparting, you can increase bidding during peak-performance time slots and decrease bidding during low-performing time slots. Taking into consideration CPC and Conversion Rate fluctuations throughout the day, dayparting allows ACoS optimization on an hourly basis. Also, the best way to determine the best time slots to display the ads is by examining historical data on customer behavior.
Dayparting Benefits
All sellers should be concerned about the efficiency and profitability of their ad campaigns. Here are some additional benefits of Amazon PPC dayparting:
- Effective budget allocation: By allocating a percentage of the budget to each hour, sellers can ensure they don’t run out of funds during peak conversion times or when competitors’ budgets are depleted.
- Cost optimization: Avoid wasting budget on low productive slots. Focus instead on ad spend during hours with the highest conversion rate. This approach enhances cost efficiency and ensures a more effective allocation of resources toward driving sales.
- Improved performance: Dayparting implementation allows to track and analyze main KPIs such as CTR, conversion rates, ROAS, and ACOS more accurately. By measuring the impact of different time slots on these metrics, the dayparting strategy can be redefined over time to achieve better results.
Schedule Dayparting on Amazon
In the past, the only way to implement dayparting tactics was through an API partner who had access to the Amazon Marketing Stream. However, in 2023, Amazon made a breakthrough by introducing a dayparting feature directly on their Ad Console.
Amazon now offers the ability to schedule your bids using the “With Schedule Rules” feature. This feature allows you to automatically adjust your bids based on the time of day. For example, if you determine that Wednesday from 8 a.m. to 10 a.m. is your most profitable time, you can set your bids to increase during that period.
Amazon restrictions
One of the tool limitations is that the only way to increase bids is through Amazon’s “Schedule Rules” tool. As Amazon’s dayparting tool can only be used to raise bids during peak hours, If you notice periods when your ads have lower performance, it is not possible to decrease your bid directly from the Ad Console.
A successful dayparting approach is usually flexible, involving increasing bids during peak times and decreasing bids during times of low performance.
Is Daypating the right approach for every advertiser?
As mentioned before, this is a great tool to increase advertising efficiency. However, the best way to know if this is the right approach is by considering CPC and CRV fluctuations. If the variation is less than 10%, dayparting may still help increase efficiency but the results in final sales won’t be as impactful. In this case, the best option will be to implement it through a third-party software rather than manually as this may take a significant amount of time that could be spent on advertising optimization instead.
If the CPC and CVR rate fluctuation is higher than 10% you may consider implementing dayparting even manually. To do so, download the Sponsored Products hourly campaign report, Amazon will allow a maximum back window of 14 days. Then you can analyze the highest CVR peaks where you will want your ads to show up and the low performer slots when you will rather pull back on bids.
You can schedule the bids using the “With Schedule Rules” to increase spending on the highest conversion slots. However, remember this tool doesn’t allow yet to decrease bids during low-performer slots.
If you have additional questions or want us to help you on your Amazon journey, don’t hesitate to get in touch with the BellaVix Team.
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