Dayparting pay per click for higher profits

Dayparting is the practice of scheduling changes to your campaigns at specific times of the day to follow known trends. The goal of these intra day changes is to maximize profits when you know conversions are the strongest and minimize spending when conversion is the weakest. If you want to use this advanced technique, there are basically 2 steps.

Data Gathering phase:

You have to know your trends in order to make good decisions about your bid scheduling. Let’s use Azoogle as an example. In Azoogle you can check your stats by the hour, and export those reports. In your statistics, simply choose “By Day Report” then click the “BH” selection to show results by hour.

I would export these reports for at least a week (2 weeks is better). Once you have the data for a time frame you can go back and see by day and hour, which times had the best and worst conversion rates. With this information, you might come to a conclusion like from 2pm-4pm conversion rates are 25% higher than the rest of the day. Or from 1am-5am conversion rates are 38% lower than the rest of the day.

Scheduling phase:

Now we can implement changes in our PPC accounts to reflect the performance data we gathered. Using Adwords as an example, here’s how its done. First you have to enable the feature, by selecting your campaign then click the “edit settings” button. In the campaign settings screen under “advanced options” check the box in “ad scheduling”. Now click the “edit times and bids” link.

Adwords will let you make changes down to the 15 minute interval. In simple mode you can only pause and run ads during certain time frames. This might be helpful if you have really horrible conversion rates at a certain time and don’t even want to run the ads. But we need to click the “advanced mode” to really optimize the campaign. You can get as granular as specific days of the week and weekends, but for this example let’s assume all days of the week are equal. So choose “bulk edit” and all days.

Based on the example above, here is what we scheduled. We have increased our bids by 40% during the high converting times, dropped our bids by 50% during the low conversion period, and kept them at the default bid which is 100% for the rest of the day.

After we save the changes, you can see the scheduled bids throughout the day by the height of the green bar during the time period. The higher bar is the increase bids, the shorter bar is the low bids.

That’s all there is to it. Dayparting can be a really powerful tool to increase profits and especially to decrease wasted spends throughout the day. Give it a try!

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Posted in General, Pay Per Click by Chad on 03|19|08
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15 Comments »

Comment by Scott
2008-03-19 20:03:01

I have heard this term but never knew what it was about. Thanks for the awesome explanation.

 
Comment by chuks ugoji
2008-03-19 22:56:10

Thanks alot for this explanation cos i have heard about that stuff before but really didnt understand what it meant.

 
Comment by Matt
2008-03-20 08:59:52

Can you get by hour for individual offers or subids?

Comment by Chad
2008-03-20 17:45:15

As far as Azoogle, yes you can go by hour and offer/subid.

Comment by Matt
2008-03-20 19:10:15

I mean both at the same time. Not total revenue by day by hour but offer or sub by day be hour

(Comments wont nest below this level)
 
 
 
Comment by Wes Mahler
2008-03-20 14:35:19

Talk about optimizing campaigns to the max!

 
Comment by Jeremy
2008-03-20 15:37:52

I’ve thought about doing this myself but have always been too cautious.

My thinking is that while is is possible with the right software or affiliate network to see when your conversions occurred, you still really don’t know when the click occurred that eventually leads to a sale.

Say I see that between 2-4 pm sales stink but 5-8pm sales are awesome. It could very well be that people may research the sale between 2-4 while at work and then purchase later when they get home. So if you prevent your ads from showing during the “bad” sales times they will never see your ad to make the purchase later.

Have you experienced anything like this or is it pretty reliable to setup day parting based on your sales times?

Just curious, I know the only way to know for sure it to give it a shot myself but I’m too cautious :-)

Comment by Chad
2008-03-20 17:44:08

Yes, I have thought this too. I think most of the conversions are done at the time of the first click. There may be a few that come back later and throw off my stats, but I’m guess the large majority click right through to conversion. Good point though.

 
 
Comment by Music.Podfire.org
2008-03-20 15:49:12

I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog.

Comment by Chad
2008-03-20 17:41:34

Thanks for stopping by.

 
 
Comment by Jeremy
2008-03-20 21:31:33

Hey Chad,

I bet it has a lot to do with the kind of promotions you do as well. For leads you are probably right that the conversions happen right then. I don’t do as much leads as I used to and do more consumer products stuff where there is probably more researching and decision making going on before the actual purchase is made.

 
Comment by MillionDollarCheck
2008-03-23 01:51:09

One of the interesting phenomenon that I noticed is the higher conversion timings for google and yahoo differs. I had one campaign which had its conversions happen at 0700am for google while the conversions occur at 1600hrs for yahoo…go figure..

 
2008-03-23 19:51:55

Awesome post. Once you have a good sample of clicks and conversions, what you want to do is to cut the hours when the conversion rates and CTR are very low. Hey, anything to maximize margins and ROI.

 
2008-04-23 17:04:16

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2008-11-12 22:46:06

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