Amazon Dayparting: The What, Why, and How

As an Amazon advertiser, you work with limited budgets. Your objective is to maximize results from those budgets. 

Let’s say you have $8,000 to spend on Amazon advertising in a month and 500 products to advertise. How will you ensure that all your products have enough budget to last a day?

Well, let us present one of the MOST effective strategies to rationalize your advertising budgets through a month, week, and day: Dayparting.

Amazon dayparting, or Amazon ad scheduling, allows you to show ads only at specific times of the day when your target audience is most likely to engage. This improves ad performance and ensures the best results. 

In this post, we will discuss: 

• What is dayparting?

• Why do Amazon advertisers use dayparting?

• Limitations in setting up dayparting on Amazon Search Console

• Advanced Amazon Dayparting Strategies

• How to daypart on the Amazon Console?

• Amazon ad scheduling or dayparting strategies for Amazon PPC

• How atom11 can help you with dayparting

• Best practices for Amazon dayparting
  
  

What is Dayparting?

Dayparting is a digital marketing strategy that allows you to (a) divide a day into multiple time frames (or “parts”) and then (b) adjust your advertising budget differently as per performance trends in each time frame. Simply put, this strategy allows you to optimize campaigns by delivering ads at peak hours when your target audience is most likely to be active and engaged.

In Amazon dayparting, or Amazon ad scheduling, you must analyze historical data and patterns to identify specific hours or peak times when your PPC ads could be the most effective. You must then schedule ad campaigns to run during these high-performing business hours while reducing or pausing ads during less active times.

Suppose a company selling breakfast cereals launches a new flavored cereal range for younger audiences. Their dayparting might involve increasing ad spend during Sunday mornings when potential customers browse Amazon for breakfast options. Moreover, customers order groceries over the weekends and are skewed more towards the first weekend of the month (it being a salary day). So, scheduling your ads on Saturdays and Sundays would be a good idea. Similarly, if a business targets working professionals, they might focus their ad schedule during lunch breaks or evenings. 

With the launch of Amazon Marketing Stream, this data is now available to Amazon advertisers through APIs. You can easily access this data and track user behaviors on the atom11 advertising dashboard.

Dayparting can be applied across all digital advertising platforms, including Google ads campaigns, Facebook ads, Instagram ads, and Amazon ads. It helps advertisers make the most of their budgets by ensuring that their ads are seen by the right audience at the right time, thus increasing the chances of conversions and maximizing return on investment.

Want to learn more about dayparting Amazon allows? Feel free to watch our video on ADvantage with atom11: Dayparting framework that will reduce your ACoS by 15%.

Why Do Amazon Advertisers Use Dayparting?

In times of high CPC (Cost Per Click) and low advertising efficiency on Amazon, if you are not using Amazon dayparting, you are losing a chance to save a minimum of 10-15% of your ad budget. There are various reasons why advertisers prefer to daypart their campaigns:

To manage competition

Amazon refreshes or resets budgets for all advertisers at midnight every day. Hence, during the initial hours of the day, competition and CPC are the highest for all campaigns. This high CPC during the initial time of day is called CPC Rush. 

As the day progresses, competitor campaigns start going out of budget, the competition comes down, and CPCs rationalize.

To avoid CPC rush and paying a high price per click during such hours, you can turn off the campaigns from midnight till 6 am, which is when shopping hours resume. This saves you from paying unreasonably high cost per click during CPC rush hours, ultimately reducing your ACoS.

To optimize budget allocation throughout the day

Advertisers with high CPC struggle to keep their campaigns within budget throughout the day. As different times of the day might see variations in customer behavior, using dayparting, you can target the ads when you have the most active users, thus increasing the likelihood of conversions. This way, you can be within budget, thus reducing ACoS and achieving better results.

Suppose a breakfast cereal company’s high-converting customers are on Amazon in the mornings and evenings. The advertiser can then turn off their campaigns during afternoons to reduce ad costs and ensure on-budget campaigns. They can turn on the campaigns when the specific audience returns to Amazon in the evenings.

Limitations in Setting up Dayparting on Amazon Advertising Console

Setting up dayparting on the Amazon Advertising Console comes with its set of challenges. For it, you need two things:

1. Data to evaluate and analyze when to pause/lower budgets or bids. 

2. Functionality to automate the action of pausing/lowering budgets or bids at an hour or day level.

There are limitations on both the above when you use the Amazon Advertising Console to set up dayparting. This is because Amazon neither gives you the hourly data to evaluate Amazon dayparting options nor has the functionality to set up Amazon dayparting at the hourly level.

However, it does give you the option of setting up dayparting at the day level with a feature called “Budget Rule.” But the difficult part is that you have to set up budget rules for each campaign individually.

Let’s go through the steps to enable budget rules:

Step 1: Download the last three months’ daily sales data from Seller Central to find out the best time to set up dayparting, i.e., which days of the week give you maximum sales.

Step 2: Select the campaign for which you want to set up dayparting.

Step 3: Specify the time you want to run dayparting rules.

Step 4: Set up the same rule for all campaigns that perform well on given days.

Step 5: You can then set up schedule rules that help you increase/decrease bids at certain times.

This process is manually taxing, error-prone, and repetitive and can be automated easily through atom11.

Advanced Amazon Dayparting Strategies

While basic dayparting strategies, such as adjusting your campaigns to target peak hours, can offer significant benefits, advanced dayparting techniques take this optimization to the next level. 

1. Dynamic Dayparting Based on Market Trends

Traditional dayparting strategies are often static, where advertisers set specific hours or periods to increase or decrease ad spend. Dynamic dayparting, on the other hand, allows you to adjust your ad schedules in real time based on market conditions, competitor actions, and shopping trends. For example, if you notice that your competitors have paused their campaigns during certain times, you might adjust your bids upward during those hours to capture more impressions and potentially reduce CPC. Similarly, you can lower bids or pause ads during hours when competition is high or the audience is less likely to convert.

Tools like Amazon Marketing Stream of third-party retail-aware platforms (e.g., atom11) can help you track real-time shifts in user behavior, competitor movements, and overall market conditions. Thus, you can dynamically adjust your dayparting schedules to stay ahead of trends. These tools also offer automation of these changes. For example, setting rules to increase bids when a competitor isn’t taking much action, or lowering bids when the competition becomes too fierce.

Benefits:

• Maximizes visibility when competition is low.

• Takes advantage of shifts in consumer demand and behavior.

• Optimizes the use of your budget dynamically, reducing waste.
  
  

2. Using Machine Learning for Predictive Dayparting

Machine learning (ML) can be utilized to predict the best time to show ads based on historical performance data. By analyzing past ad performance, user behavior, and external factors like seasonality or even weather patterns, machine learning algorithms can recommend optimal time slots for dayparting, potentially improving the efficiency of your campaigns.

ML models use historical campaign data to analyze when certain demographics are most likely to engage with ads. This can involve patterns in purchasing behavior, time-of-day engagement, and seasonality trends. Additionally, their predictive algorithms can foretell the likelihood of a conversion based on factors such as the time of day, day of the week, and type of product being advertised. For example, if certain products are more likely to convert during certain hours based on past behavior, ML models can automatically adjust bids and budgets during those times. This predictive intelligence also enhances audience targeting strategies within AMC.

Benefits:

• Allows for more granular, data-driven adjustments to bidding and budgeting.

• Improves ROI by targeting high-conversion time slots with higher bids.

• Automates decisions based on predictive data, reducing manual intervention.
  
  

3. Dayparting Based on Audience Segmentation

While basic dayparting focuses on general audience behavior, audience-based dayparting takes segmentation to the next level by targeting specific audience groups at times when they are most likely to engage with your ads. This involves dividing your audience into distinct groups (e.g., age, gender, location, interests) and tailoring your dayparting schedules for each segment.

To segment your audience, you may use Amazon's audience segmentation features or third-party tools such as atom11’s Amazon Marketing Cloud suite to divide your audience into groups based on factors like demographics, shopping history, or behaviors. For example, if data shows that younger users engage more with ads during the evening, adjust your bidding and scheduling to target that audience specifically during those hours. Alternatively, if your audience is predominantly working professionals, you can schedule ads during office lunch break or after work hours.

Benefits:

• Provides more personalized and relevant ad delivery to specific audience groups.

• Increases conversion rates by showing ads when the target audience is most active.

• Allows advertisers to fine-tune their budgets, focusing more on high-converting segments.
  
  

4. Seasonal Dayparting Adjustments

Seasonality plays a significant role in Amazon advertising campaigns, especially for products with fluctuating demand throughout the year (e.g., holiday gifts, summer wear, christmas decoration, etc). Advanced dayparting allows advertisers to account for these fluctuations by adjusting their schedules not only during the day but also throughout the year.

You can analyze historical data to understand when your product experiences higher demand (e.g., around the holidays or during a product launch). You can then schedule your ads to run more frequently during these periods and pause or reduce spend during off-peak seasons. Incorporate weather, holiday calendars, or even regional events into your dayparting strategy. For instance, an ice cream brand may adjust dayparting to increase bids during hot weather, or a fitness brand might run ads at specific times during the New Year when people are setting resolutions.

Benefits:

• Increases visibility during peak seasons, driving more conversions.

• Maximizes ROI by allocating higher budgets to high-demand times.

• Helps prevent overspending during off-peak seasons, improving cost efficiency.
  
  

5. Competitor-Based Dayparting

Understanding your competitors’ behavior is crucial for developing a winning dayparting strategy. Competitor-based dayparting uses data on competitor ad schedules and performance to adjust your campaigns accordingly. By analyzing when your competitors are most active, you can choose to increase your bids when they reduce theirs or avoid the crowded hours when they are spending heavily. 

Use tools like atom11 to monitor when competitors increase or decrease their bids, or when they focus on particular time slots. After that, adjust your campaign based on the competition. For example, if your competitor’s ads are paused during certain hours, it might be a good opportunity to increase your bids during those hours and capture the available impressions (only if audience’s intent to purchase is also high during those hours). Conversely, if your competitor is overspending, you might scale back and wait for them to exhaust their budget.

Amazon Competitor Analysis: Outsmart Your Rivals

Benefits:

• Optimizes ad spend by targeting less competitive, cost-effective times.

• Improves visibility during competitor downtimes, potentially capturing their audience.

• Allows for strategic bidding based on competitor behavior, reducing CPC.
  
  

Benefits of Amazon Dayparting with atom11

A retail-aware Amazon PPC software, atom11 makes it really easy to set up Amazon dayparting in bulk for all or selected campaigns. Let’s look at the benefits of using atom11 to set up custom ad schedule for your Amazon PPC campaigns:

• You can set up one rule for all types of campaigns (Sponsored Products, Sponsored Brands, Sponsored Display).

• You can set up the same rule for multiple campaigns in bulk, eliminating any repetitive work.

• You can create different types of dayparting strategies for different campaigns, i.e., you can set up different dayparts for each day of the week and each hour of the day.

• You can easily switch a rule off or on when required.

• You can evaluate the performance of each dayparting rule.
  
  

Setting up Amazon dayparting with atom11

At atom11, we have tested our dayparting framework multiple times and predictably seen better ROAS and ad sales. There is a need to understand that dayparting is not only about reducing budgets; atom11 allows you to set up dayparting at three levels: (a) Budgets, (b) Bids, and (c) Top of Share Bidding Multiplier. The process of setting up dayparting on Amazon advertising campaigns is quite simple. Let’s go through the steps:

Step 1: On your atom11 dashboard, go to Automation > Dayparting

Step 2: Click on “Create Rule”. Create a unique name for the rule you want to create. We suggest that your rule name be an easy peek into the rule parameters:

Example:

• Campaign_type = All campaigns, OR SP campaigns OR “Product A” Campaigns

• Dayparting for = Bids/ Budgets/ TOS

• Dayparting parameters = 10%_Midnight_40%_0900_80%_1800

Step 3: Select whether you want to run the dayparting rule on bids or budgets.

Step 4: Select a time range for the dayparting rule.

Step 5: Next, select the campaigns that you want to run the rule on. You can select all campaigns, choose campaigns manually, or upload campaigns that you want to set the rule on.

Step 6: Set up the dayparting parameters. You can set up the same parameters for all days of the week or you can set up different rules for different days. Here’s an example:

Step 7: Hit “Create Rule” and your rule is ready.

Dayparting doesn’t end here. The most important work comes after setting up dayparting. Track ROAS pre- and post dayparting era to ensure you are not losing ad sales due to pausing campaigns at a specific time. You can do this in one click using atom11's exclusive Amazon dayparting evaluation feature:

Dayparting Best Practices

1. Use Reliable and Current Data: To make informed dayparting decisions, it's essential to rely on accurate, real-time data. One great way to achieve this is through Amazon analytics, because errors or outdated performance metrics can lead to misguided decisions. Leverage tools like atom11 for automated, reliable data analysis, reducing human error and ensuring your dayparting decisions are based on the most current insights.

2. Avoid Over-Optimizing: While it’s tempting to drastically reduce ad spend during off-peak hours, over-optimization can miss potential conversions, especially when customer behavior is unpredictable. Instead, make subtle adjustments rather than cutting back too aggressively. Use dynamic dayparting to adapt to shifting customer behavior and ensure visibility during key conversion windows.

3. Know When Not to Use Dayparting: Dayparting isn’t ideal for every campaign, particularly for products with consistent demand or small budgets. For time-sensitive promotions, pausing ads at specific times may limit visibility and hurt performance. Instead, use dayparting for products with fluctuating demand or to optimize ACoS. For steady-demand items or small budgets, it’s often better to run ads continuously.

4. Focus on Off-Peak Hours: The early morning hours (12:00 AM to 6:00 AM) typically see higher competition and lower engagement, making it a good time to reduce bids or pause ads to save on costs without sacrificing performance.

5. Use Dayparting to Optimize ACoS: If your ACoS is high, dayparting can help optimize spend by focusing on high-conversion periods and cutting back during lower-performance hours. Allocate more budget and higher bids during peak conversion times, and scale back when performance is lower, ensuring your ads convert at the best possible times.

Summing Up

Optimizing campaigns is something you put a lot of effort into. But, if you haven’t yet tried dayparting, it’s a loss. Just selecting the right hour to show your ads can hit the sweet spot and propel your campaign forward, significantly benefiting your CRO (Conversion Rate Optimization).

Tools like atom11 make it even easier to get started with dayparting. You can set up custom rules for each campaign, update rules in bulk, and automate Amazon ad scheduling. So, if you’re ready to boost your campaign results, book a demo with atom11 today!

FAQs

What is dayparting in digital marketing?

In digital marketing, dayparting is scheduling ad campaigns to appear at specific times of the day or week when the target audience is the most active. This strategy allows advertisers to optimize their ad spend by delivering ads at the right time when the target audience is most likely to engage and convert rather than displaying the ads throughout the day and increasing ad costs.

What is an example of dayparting?

An example of dayparting for an Amazon seller could be a fitness equipment brand running ads for dumbbells during early mornings (6-8 AM) and evenings (6-9 PM), when their target audience–health conscious individuals– is most likely to be active. This ensures ads appear when customers are ready to shop, maximizing conversions and minimizing wasted spend during off-hours.

What is the meaning of dayparts?

Dayparts are specific timeframes or different time slots within a day that advertisers use to divide the advertising schedule. Each time segment or daypart is targeted to different audiences based on their browsing and purchase behaviors.

Why should I use dayparting?

You should use dayparting to optimize your ad spend by showing ads during peak times when your audience is most likely to engage with your content. This strategy helps improve your ad’s effectiveness, increasing conversions while reducing waste during slower periods. By aligning your ads with high-impact moments, you can maximize your ROI and ensure that your ads are reaching the right people at the right time.

What dayparting timeframes work best?

The effectiveness of dayparting timeframes varies depending on the target audience and industry. Generally, morning hours (6-10 AM) and evening hours (6-10 PM) tend to work well for reaching a broad audience. However, it's crucial to analyze your specific audience's behavior patterns and adjust the dayparting timeframes accordingly to achieve optimal results in your advertising campaigns.