What is Dayparting on Amazon and How Can It Help Boost Your Sales?
Hello Amazon Seller Extraordinaire,
Are you ready to supercharge your Amazon sales and leave your competition in the dust? Strap in, because we're about to introduce you to a strategy that can ignite your sales like a grand fireworks display!
Welcome to the world of dayparting. Imagine having the keys to your customers' daily routines, showcasing your products at the precise moments they're most likely to hit the 'Add to Cart' button. Picture your sales skyrocketing as you reach your customers when they're most engaged and ready to buy. That's the exhilarating potential of dayparting.
Allow me to illustrate this with a personal anecdote and a couple of other compelling examples:
Midnight Supplement Shoppers: In my past experience selling supplements on Amazon, I observed a fascinating trend. Sales would explode between midnight and 3 am, with customers purchasing 4-5 bottles at a time. By tapping into this late-night buying habit through dayparting, I was able to significantly boost my sales.
Morning Commute Coffee Lovers: Selling a travel coffee mug? Target those early risers who are rushing out the door with coffee in hand, wishing they had a better travel mug. Dayparting allows you to position your product at that exact moment of need.
Lunchtime Fitness Fanatics: If you sell workout gear, consider targeting office workers who hit the gym during their lunch break. Show up in their feed right when they're searching for ways to optimize their workout.
Dayparting isn't just about making sales—it's about forging a deep connection with your customers. It's about understanding their habits, their needs, and their desires so intimately that you can anticipate when they're most likely to need your product, and then being there for them at that precise moment. In our upcoming blog post, we'll be diving deep into this tantalizing strategy. We'll show you how to harness the power of Dayparting to skyrocket your sales, delight your customers, and elevate your Amazon business to new heights of success.
Ready to ride the wave of dayparting and watch your sales soar? Stay tuned!
TLDR (Key Takeaways):
Amazon Dayparting is a powerful strategy that allows sellers to schedule their ads during peak customer activity times, increasing visibility and conversion rates.
By using dayparting, sellers can eliminate window-shopping traffic and focus their ad spend on high-intent customers who are more likely to make a purchase.
Dayparting helps sellers take advantage of shopping events and manage their limited daily budget effectively by targeting specific hours or days with higher conversion rates.
Understanding the customer buying cycle, analyzing customer data, and setting clear campaign goals are essential steps in determining the best dayparting strategy for increased revenue.
What is Amazon Dayparting and Why is it Important?
Amazon Dayparting refers to the strategic display of ads at specific times throughout the day. This precise approach to PPC targeting takes advantage of peak traffic periods, effectively capturing customers when they are most likely to make a purchase. Implementing Amazon dayparting strategies can significantly increase your ad's visibility and conversion rates.
Understanding the importance of this efficient ad scheduling tool is crucial for any Amazon FBA Seller. With consumers spread across various time zones and having differing online shopping habits, merely setting up an ad without considering its timing could be a critical mistake.
Employing Dayparting strategies allows you more control over your campaign and ensures that your advertising reaches the targeted audience exactly when you want it to—this ultimately drives sales growth, reduces wasted budget on ineffective display times, and maximizes revenue generation from each PPC campaign.
Benefits of Using Dayparting on Amazon
Using dayparting on Amazon offers several benefits that can significantly impact your advertising effectiveness and revenue:
- Show Ads During Peak Times: Dayparting allows you to target specific hours or days when your target audience is most active, ensuring that your ads are seen during peak engagement periods.
- Eliminate Window-Shopping Traffic: By strategically showing ads during high-intent times, you can filter out casual shoppers who may not convert, optimizing your ad spend for higher-quality traffic.
- Get More Sales During Shopping Events: Dayparting enables you to capitalize on shopping events such as holidays or promotional periods by increasing ad visibility during these key moments of heightened purchase intent.
- Manage a Limited Daily Budget Effectively: With dayparting, you have the ability to allocate your daily budget more efficiently by focusing spending on hours or days with higher conversion rates and customer activity.
- Target the Ideal Customers: By analyzing customer data and understanding their buying behavior, dayparting helps you laser-focus your advertising efforts towards the customers.
Amazon Dayparting Tools
You might be wondering how to take advantage of dayparting in your Amazon PPC - luckily there are tools that integrate with Amazon Marketing Stream that allow you to accurately day part on Amazon.
We recommend Scale Insights and Perpetua. Here are some videos showing more.
Introducing: Amazon Marketing Stream
Amazon Marketing Stream (AMS) is a transformative service that recently launched which has opened up new possibilities for dayparting in Amazon advertising. Prior to AMS, the lack of real-time, hour-by-hour data made it challenging to implement effective dayparting strategies.
AMS has changed the game by offering real-time, hourly data on ad campaign performance. However, it's important to note that while AMS is a powerful tool, as of now, most individual sellers do not have direct access to this service due to its technical complexities and requirements.
The good news is that many tool providers who cater to Amazon sellers now have access to AMS. These providers are able to harness this data and build sophisticated tools and services that individual sellers can utilize. By leveraging these tools, sellers can gain insights into the performance of their Sponsored Products and Sponsored Display ads on an hourly basis.
This information allows sellers to strategically adjust their ad placements and bids throughout the day, aligning their strategies with when their target audience is most active on the platform. Consequently, the introduction of AMS and the subsequent adoption by tool providers has significantly improved the effectiveness and efficiency of dayparting strategies, leading to better campaign performance and return on investment for Amazon sellers.
External Traffic Dayparting for Amazon Sellers
External advertising platforms such as Google, Facebook, and TikTok provide advertisers with a high degree of control over their advertising campaigns. These platforms offer granular control over ad targeting that goes beyond the capabilities currently offered within the Amazon platform, even with the advent of Amazon Marketing Stream.
One of the key advantages of these external platforms is their sophisticated demographic and interest targeting capabilities. Advertisers can target specific age groups, interests, and behaviors, creating highly tailored campaigns that resonate with their target audience. This enables sellers to reach potential buyers who are most likely to be interested in their products on Amazon. Furthermore, these platforms offer advanced location targeting options. Sellers can target their ads to potential customers in specific cities, regions, or even countries. This capability is particularly useful for sellers who wish to tap into new markets or focus their efforts on areas where their products are most popular. Moreover, these platforms allow for detailed control over dayparting. Sellers can adjust their ad strategies based on the time of day, aligning their campaigns with the online habits of their target audience. This could mean targeting ads during peak shopping hours or at times when their audience is most likely to be online. Finally, these platforms can be used to direct traffic straight to Amazon product pages. By linking their ads directly to their Amazon listings, sellers can guide potential buyers from the ad to the point of purchase in a seamless journey, increasing the likelihood of conversions.
Seller Insights from Using Amazon Marketing Stream for Dayparting:
Findings from Social Media - Early Findings
Experiment 1: Hourly Bid Optimization & Key Performance Indicators
We gained beta access to Amazon Marketing Stream (AMS) through Perpetua Stream. This enabled us to analyze hourly campaign performance data. We utilized Perpetua's Intraday Optimization tool to optimize campaigns every hour, depending on our objectives, such as sales, efficiency, or share of voice. Our experiment involved hourly bid optimization. We compared hourly trends for four key performance indicators (KPIs) across three different accounts in distinct niches. The KPIs included Advertising Cost Of Sales (ACOS), Cost Per Click (CPC), Conversion Rate (CVR), and Click Through Rate (CTR). The most interesting trend we observed was with CPC. After midnight, CPC was at its peak, but it trended down throughout the day. At its lowest point, CPC was 40-60% cheaper than at its highest. This insight led us to consider strategically shifting ad spend towards high-demand hours to generate more sales with better returns.
Experiment 2: Identifying Inefficiencies in Ad Spend
Using AMS, we identified that 15% of an account's spend occurs when ACOS is significantly higher than the rest of the day. This information is invaluable for accounts with limited spend or those focused on profitability. We proposed dayparting these early hours, when CPC is high and CVR is low, to recapture a significant portion of ad spend. However, we noted that this approach may not be advantageous for all accounts, especially those focused on reach or scale, or for new accounts. We also considered how AMS insights could be used to enhance other metrics, such as impressions and CTR, and to shift periods of less efficient reach to more efficient ones. We concluded that all accounts are different and what works for one may not work for another.
These posts have been summarized from social media posts from Liran Hirschkorn and Destaney Wishon.