We recently did a couple of articles around Goal Setting and Campaign Structure so we've decided to tie a neat bow around one last critical feature to succeeding with Amazon PPC. So i'll address a more tactical tool, dayparting. Dayparting, when combined with our other novel approaches outlined in earlier posts around campaign goal setting and automating an optimal campaign structure, are the building blocks for Amazon PPC success.
What is Dayparting and Why Bother?
Dayparting is when you distribute or schedule your daily ad budget on Amazon for certain times of the day in order to achieve better results (normally a higher RoAS/lower ACoS). Although you can extend this to incorporate budget allocation across the days of the week (weekday vs weekend for instance) or day of the month, the most common implementation is time of day budget allocation.
For example, if you know customers buy your product whilst they commute to and from work, you can allocate a large proportion of your budget from, say, 7am - 9am and 5pm-7pm.
The Status Quo
Currently if one uses Amazon Advertising or Seller Central to run PPC ads, there's no dayparting function!
It's very common to simply run out of your daily budget before the day's finished or to spend heavily from midnight until 6am when hardly anyone is buying. So the very first use case of dayparting is to ensure you don't run out of budget at 3pm, especially if you know customers are buying on their way home from work in the example above.
Nozzle has a few levels of dayparting:
- You can simply ensure you don't run out of budget before a certain time in the day.
Using the animation below, we can use the data to:
- Allocate more budget to when customers are actually purchasing your product. In this example, purchases are clustered around 7am-9am and 5pm-7pm.
However, the graph also shows the CPCs on an hourly basis too. This is a useful guide to determine whether it will be too expensive to advertise during those hours (i.e. you'll go over your breakeven ACoS for instance). So it may well be the case that purchases are clustered from 7am-9am and 5pm-7pm, but it will cost us a lot more to acquire a customer during those periods.
So we give you the data to apply smart dayparting in a quick and informed way.
We launched Nozzle's bid optimization tool on Aug 1st 2020, we're always looking for new partners to sign up to our Pioneer program.