The Amazon selling landscape has become quite competitive and challenging with so many sellers trying to achieve sustainable growth. Leveraging advertising tools and audience management tools like Hector, sellers can effectively enhance their overall advertising performance.

While traditional advertising strategies focus on broad targeting and general scheduling, Amazon DSP dayparting is an innovative and improvised approach. Dayparting has significantly enhanced the ad performance for Amazon sellers. In this article, we will explore what is dayparting, how dayparting works, the benefits of dayparting, and how it can help Amazon sellers optimize their ad campaigns.

What is Dayparting?

Dayparting (a feature of Amazon DSP) is the practice of scheduling your advertisements to run at specific times during the day when your target audience is most likely to engage. The marketing strategy is often used in digital advertising to optimize ad spend, ensuring that ads are shown at the times (to potential customers) when they are most likely to convert. The process involves analyzing user behaviour to identify the correct time for engagement and tailoring ad schedules accordingly.

When it comes to Amazon DSP, Dayparting involves monitoring traffic patterns, customer purchase behaviour, and competition (concerning other similar products & sellers) to predict the best times to run ads for maximum impact.

Effective dayparting can help sellers increase visibility, reduce unnecessary ad spend, and improve ROI.

Why Dayparting is Important for Amazon Sellers

1. Maximizes Ad Spend Efficiency

Especially for new Amazon sellers, advertising costs are one of the biggest expenses, precisely when running Sponsored Products, Sponsored Brands, or Sponsored Display ads. Dayparting allows sellers to allocate their budget more efficiently by focusing on the hours or days when their target customers are most likely to convert. This strategy makes you avoid ad spend during low-traffic periods. This way, sellers can ensure their advertising dollars are spent more accurately.

2. Increases Ad Visibility

Amazon Ads are highly competitive, with numerous sellers bidding for the same keywords and targeting similar audiences. Dayparting helps sellers target the most appropriate time to get their ads in front of potential customers. By running ads during high-traffic hours, sellers can increase the chances of their products being noticed by shoppers. This improves the visibility and eventually increases the sales.

3. Align ads with Customer Behavior

Another benefit of dayparting is that it takes customer behaviour patterns into account, meaning, it monitors when people are more likely to browse Amazon or make purchases. For example, consumers are likely to shop more during the evening after work or on weekends when they have more leisure time. By aligning ad schedules with these peak shopping hours, sellers ensure their ads appear at the right time. This enhances the chances of conversions.

4. Improves Campaign Performance

Performance metrics such as click-through rate (CTR) and conversion rate are influenced by when ads are shown. Dayparting enables sellers to run ads during peak hours, which leads to higher engagement, better CTR, and eventually improved campaign performance. Once the ad schedules are optimised, sellers can fine-tune their campaigns for better results.

5. Better Competitive Edge

Sellers who fail to optimize their ad schedules risk getting lost in the crowd, especially during times when competition is at its peak. Dayparting offers an opportunity for sellers to target less competitive hours, allowing them to get a better ROAS and competitive advantage.

How Dayparting Works on Amazon

Here are some of the essential steps to implementing a dayparting strategy for Amazon ads:

• Analyze your Data: The process begins by collecting data. Amazon provides sellers with analytics and reporting tools that can be used to track performance across various times of day. Amazon's advertising dashboard offers detailed reports on clicks, impressions, sales, and conversions. Analyzing these metrics helps sellers spot patterns in customer behaviour. For example, if an ad receives clicks between 9 p.m. and 12 a.m., it may be beneficial to schedule the ad during this time frame.
• Use Amazon Advertising Tools: Amazon's advertising platform provides tools that can help optimize dayparting. With Amazon ad campaign manager or other third-party tools like Hector, sellers can adjust their bids based on the decided time of the day. Moreover, Amazon attribution can also be used to measure the effectiveness of dayparting across different marketing channels. Sellers can track the time of the day that drives the most traffic and conversions, allowing them to modify their campaigns when needed.
• Set Up Custom Ad Schedules: Once you have analyzed the data, the next step is to create an ad schedule that aligns with peak shopping times. This can be done using the Ad scheduling feature in Amazon's Campaign Manager. Remember, Amazon does not offer an option to schedule ads by specific times of day, but sellers can manually set campaigns to start and stop at particular times. Segment campaigns based on time for different buyer behaviours.
• Adjust Bids by Time of Day: Bid adjustments by the time of day can also be beneficial when practising dayparting. Amazon allows sellers to adjust their bids based on time of day, with options to raise or lower bids for specific hours. By optimizing bids for high-conversion times, sellers can make the most of their budget while ensuring that ads are appearing when they are most likely to generate a sale.
• Monitor Performance and Adjust as Needed: The key to generating revenue with dayparting is continuous monitoring and optimization. Sellers must regularly check the ad performance and analyze the metrics to ensure that their dayparting strategy is effective. Amazon provides real-time reporting, which can be used to track clicks, conversions, and ROI. By optimizing campaigns, sellers can maintain high levels of performance and maximize the ROAS.

Best Practices for Dayparting on Amazon: Leverage the Powerful Strategy

Knowing your target audience and understanding customer behaviour is the key to making informed decisions. When first implementing Amazon DSP dayparting, consider running a small test campaign to assess the effectiveness of different time frames. Constantly monitor the ad performance over a week or month, and make adjustments according to the collected data. Keep an eye on seasonal trends with different shopping patterns around holidays, special events, and sales periods. Hence, sellers should adjust their dayparting strategies accordingly to ensure maximum performance during high-traffic periods. Besides, refine your ad creatives and messaging, and utilize Amazon's automated tools to automatically adjust bids, making it easier to stay competitive in this landscape.

By analyzing data, aligning ads with customer behaviour, and optimizing ad schedules, sellers can improve ad visibility, increase conversions, and gain a competitive edge. When executed correctly, dayparting not only boosts performance but also helps sellers stay ahead of the competition in a crowded and competitive marketplace. With the right tools and data-driven insights, dayparting can unlock a path to sustainable growth for Amazon sellers.