Kris and Dustin discuss using dayparting in your Amazon pay-per-click (PPC) advertising and how it can be effective for your ad campaigns to utilize your investment more efficiently.
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– Hello everyone, and welcome to episode 33 of Two Amazon Sellers and a Microphone. I’m Dustin Kane, and with me as always, is Kris Gramlich. What’s happening, Kris?
– Not much, just excited about today’s topic. It’s a pretty good one.
– I know, I’m excited too. This is something that I think a lot of Amazon sellers either don’t know about or don’t utilize, ’cause it’s not something you can do just inside Amazon itself easily, and that’s dayparting your ads. So just really interesting topics. So before we totally dive in, Kris, tell everybody what it means to daypart your ads.
– Yeah, so it’s a term that some people may not know, but it’s getting more common out there. But what essentially it does is, it’s pausing your campaign during off-peak times so that your ad spend is more saved for higher converting times for your product. This cannot be done in Amazon seller central. You even need a tool to do this, but essentially what you’re doing is pausing your campaign. Let’s say between like midnight and 4:00 AM, and then after 4:00 AM, your campaign would come on and now all your budget is going to be saved for that time. For whatever time you decide to turn it off. So, Sellozo automates this, you can automate this inside Sellozo. It’s only going to get better. We’re going to add more features to it, I’m sure in the future, but that’s essentially what it is. It’s a pausing and unpausing of your campaigns.
– Right? So just running your ads at different times of the day, as opposed to all day long. Now you actually could do this inside Amazon manually, but you’d have to set some sort of timer. And when it goes off, run into your campaigns and pause the off. So if you’ve got multiple-
– That’s terrible.
– Yeah, but the Sellozo interface for dayparting is fantastic. It’s the best I’ve seen out there. And it just allows you to, at the hourly level, determine whether you want your ads on or off at that time period. Now, this is an interesting topic, dayparting, because I think for most people when they’re talking about ads, they’re like, why would I want to have my ads paused at any time of the day? I want them running nonstop. I would have called myself in that camp for sure, before digging into the data and looking at what dayparting can do to your campaigns. And we can also talk about the, there’s a few different scenarios of why you would want to daypart. And we’ll talk about those as we go on, but I’ll just start this off with something that I never really thought about, but in researching more and learning more about dayparting, it became more apparent that this is obvious. At midnight, every single person’s campaign kicks off for the next day, whether you’ve got a $10 budget, a thousand dollar budget, or a million-dollar budget. So the most competitive time of the day is 12:01 AM. That’s when everybody’s campaign’s running and, you know, anecdotally that’s probably the least amount of traffic on Amazon at that time. And it’s ultra-competitive. So all those people are competing for the bids, they’re getting these clicks and then people are running out at different times of the day. And so the longer the day goes on, the less competitive advertising gets where you actually can see cost per clicks per the ads drop, which right off the bat, just learning that it’s kind of an eye-opener. We were talking earlier today that we may need to go revisit some of our campaigns and look at just that fact.
– Yeah. And ’cause I’d like to, like, envision like aT 12:01, it’s like an auction, it’s an auction. You know, if I’m bidding on the same keyword you’re bidding on, I don’t know what budget you have. And my budget’s probably limited, you know, a couple of clicks depending on my bid, I’m going to be out of budget by 12:02. I’m going to run out of budget pretty quick. But so, let everybody else jump out in front, like at them a bit on it, let your competitors, let them get that CP or that, what they call it, cost per click rush or something where all those bids are really high. So let them go after it, then you can kind of sneak in and kind of take over as they run out of budget. And you’re not paying so much on cost per click, and your ads are gonna run longer and your conversion rate is going to be better because it’s a better time of day. But yeah, I can just like, if I talked to Cyrus about this, it’s like just envision an auction and everybodys there. And at 12:01, it’s like, who’s got the highest bid, they’re going to win first. They’re going to stay there ’til they run out of budget. And depending on the keyword, it could be out of budget pretty quick. So yeah, I’m definitely going to revisit this on some of my campaigns.
– O for sure. And I used to call, if you daypart of your ads, and let’s say you turn your ads on at 6:00 AM and ran it for the rest of the day. I used to consider that budget conservation, like a budget conservation strategy, because you’re trying to conserve your budget to where you’re now showing your ads during the day without running out. I now consider that more than just budget conservation, but it’s also a smart strategy because you’re popping in now as the competition is starting to dwindle and decrease. So I think there’s certainly products, and this is where we can transition to the next reason for dayparting. There’s certainly products that sell well in the middle of the night. There’s certainly, you know, maybe that’s when your customer base is looking to buy your products. And so you may want your ads running then, but in general, your conversion rates and your ability to compete will be better obviously during the day. So just off the bat, if you do nothing but a simplistic approach of dayparting your ad so that your ads are paused during the middle of the night, I think that’s a winning strategy. So that you’re conserving your budget for when everyone else is running out.
– Yeah. We had a mattress company that, you know, we’ve worked with, and they use this to their benefit where they’re seeing all their orders at night, like after six, seven, eight, nine, all the way up to midnight, one, two. So they do it in reverse. They’re pausing other campaigns during the day because no, they’re seeing that not a lot of conversions are in that day or during the day. And then once that, you know, nighttime hits, people start after dinner, start going to bed, start dwindling down. That’s when they turn their ads on and they start getting those sales that they’re saving their budget for. So, you know, it’s, you gotta kind of know your niche and know your market and where your buyers and what time they’re buying, and then just adjust your campaigns to that time.
– Now, that’s a good point you bring up, because there’s a way they figured that out. You know, the thing, the problem with Amazon’s advertising platform as it is now is they don’t tell you the effectiveness of your campaigns by time of day. All you know is when you generate sales. So, you know, at 2:30 today, I made a sale. You have no clue if that came from an ad, you also have no clue if your ad got clicked a thousand times at two o’clock and you only made one sale, okay? So you don’t know the effectiveness of your campaigns by time of day. The way companies are determining when they’re successful is by AB testing their campaigns. And so what they’re doing is they’re running different campaigns at different times of the day, so they can test stuff. You’ve got a campaign, like a typical strategy would be to run a campaign from midnight to 6:00 AM. That’s campaign A. Campaign B runs from 6:00 AM to like 5:00 PM business hours, and then you’ve got campaign C that runs from 5:00 PM to midnight. You run those for a few weeks and then you can look at the data. And this is what, like, that mattress company you’re talking about did. They AB tested their ads. Inside Sellozo, we make this really easy. You can click one button, clone the campaign, and then put your dayparting parameters for each campaign differently. One in the morning, one in the night, however, you want to set it up. So when you run those AB tests for a while, you might find out, hey, from midnight to 6:00 AM, we were running out of budget, and our A cost was through the roof, okay? During the day you didn’t run out of budget. Your conversions were awesome, you know, et cetera, or in midnight, whatever the results are, maybe in the evening, your A cost gets higher again. With that data, now you can allocate your budget and your strategy to different times of the day. So if the middle part of the day is your sweet spot, you can put all the majority of your budget there, you can be aggressive, like a much higher target A cost during that time of day, so you can really be aggressive with your advertising, because it converts well. And then you can do the, if you want to keep your ads running all day long, you can set lower budgets and lower targets for those poorer performing times. And that way it saves your budget, or you can just get rid of those times altogether. So that’s where AB testing dayparting can be so valuable.
– Mm-hm. That’s a good point. And that’s kind of what we recommend with our agencies that we work with is like, do that AB test because they can figure out when their clients’ campaigns perform the best. We’ll just do some quick couple of clones, two different times a day, let it run for a couple of weeks. And now you’ve got some data that shows you when those products perform the best, or when those ads perform the best. Good point.
– Yeah, and when you’re talking about just overall optimization of your ad campaigns when we talk to sellers all day long, that’s what Sellozo’s for, I mean, we’re adjusting the bids based on target A costs, et cetera. That’s all great optimization. But time of day is just another area where you can be more efficient with your ad spend. For example, you might find, let’s say you’re running a campaign that’s a normal all day long campaign, and your A cost is 80%. And you’re just like, you know, 80% is not going to work, but let’s say you divide it up during the day. And let’s say from midnight to 6:00 AM, your A cost is 140%, and from 6:00 AM to 5:00 PM, your A cost is 20%. That might be the situation that you’re in. Well, you just made yourself more efficient, pause your ads from midnight to 6:00 AM and you’ve reined in your A costs. And it’s not always going to be the middle of the day. Like we talked about, the mattress company was in the evening. And you can learn about just, you can learn more about your buyers’ habits and when you can get in front of them, just thinking of that mattress company off the top of my head, if I’m going to buy a mattress, I for sure have to get that approved by my wife. So if both of us are at work all day long, there’s no chance I’m buying a mattress at 1:00 PM. I’m going to come home, I’m going to tell her that I looked at this and we’re going to make a decision and buy it together. So there’s probably a, that might be the reason for the evening conversions, is because you’ve got to be with your spouse to pull the trigger on that buying decision. Other products are totally different. You know, it’s just the way it is. And some products, we can tell you, you don’t need it. They sell equal all throughout the whole day, but you don’t know unless you test. And so that’s where if you’re looking to compete on Amazon, just like you and I do on a daily basis, finding every little efficiency in savings or, you know, just understanding the fact that ads are competitive, the most competitive when they first launch, at midnight. I mean, I think people don’t really understand that.
– Yeah. It’s not really talked about. I mean, they know it’s an auction, but you know, if they wake up and like, oh, my campaign’s out of budget, well, yeah, your bids are high, your budget’s too low, you need a tool, like, to daypart that, so you can save your budget for later.
– It’s something I’m definitely gonna look at again, some of my campaigns, ’cause some of my bids are pretty high and I want to make sure that I keep my campaigns running all times of day, that I want to get those conversions.
– Yeah, I mean, this is just another tip in the tool kit, or trick in the toolkit, that you can use to save money and be more effective on Amazon. And again, the main reasons you want to use dayparting is to conserve budget so that your budget’s running when your buyers are in front of you. Number two is to avoid running ads at the most competitive part of the day for ads. And number three is to AB test your buyer’s buying habits, and when your product converts the most, so you can focus on those things. Those three, you can accomplish really easily through Sellozo’s interface. Like I said, it’s ultra-easy to use. You just click on your campaign, a hour by hour schedule of your day pops up, and you can just fill out what days and what times of the day you want your ads to run. And our tool goes into your campaigns and pauses them and turns them off for you automatically. It’s a really powerful feature for sure. And I can tell you it’s underutilized by everybody, including the people that are on Sellozo.
– No doubt.
– They come on and they’re under-utilizing their ability to daypart and save money. So, you know, I think everyone, if you’re listening, I think you can tell by how Kris and I are talking about how important this can be for you, we’d love to show you. I mean, if you’re wanting to see how you can do this for your ads, go to sellozo.com, click request a demo. You’re going to get either Kris or I, like I mentioned last in the last episode, it’s luck of the draw. If you’re lucky you get me, and- Just kidding, Kris. You’ll get either Kris or I on the call and we’ll walk you through it. We’ll show you how Sellozo does that, how easy it is for you. And then we can help you sort of maybe design an AB test as well if that’s something you’re looking into. So yeah, we love talking. We talk to sellers all day long about it, you know, and we’ll love to see you on there. So go to sellozo.com, book request a demo, and you’ll be talking with either Kris or I, and we can talk all about dayparting and everything else. Also, if you want to see more information like this, we’re live on Facebook, YouTube, LinkedIn, right now, as well as recording this podcast. If you want to see this information, go to Sellozo’s Facebook page and like it, you’ll be notified when we go live, that way you can jump on and see us. Sometimes we can have some visuals on here as well. Also if you’re enjoying this and you listen to the podcast, make sure you liked the podcast, subscribe to it, give us a review. We’ll stick to the, we’ll treat it like Amazon. Give us an honest review.
– Yeah, honest
– Honest, unless you’re unhappy, then contact us first.
– Yeah, no, we’ll give you a rebate.
– Yeah, exactly. No, just go to your podcast of choice, your site of choice, and subscribe to our podcast. We’d love it, we’d appreciate it. We hope this is helpful. Kris, you and I will be back at this again tomorrow.
– That’s right. We’ll see you then.
– All right. See you guys. Bye.