Part 4: Unlocking the Power of Retail Media - Guide to Dayparting Strategies
#4 in BirdDog’s Retail Media Principles 4-Part Series
By Jeff Coleman, Chief Client Officer at BirdDog
Retail media has become an essential part of the eCommerce landscape, offering brands an unprecedented opportunity to connect with shoppers directly within the buying journey. With retail media spending projected to grow to $61 billion in the U.S. by 2024, competition for consumer attention has never been fiercer. To maximize ROI, brands must employ more sophisticated advertising tactics—and one of the most effective yet underutilized strategies is dayparting.
Dayparting, also known as ad scheduling, involves strategically targeting specific times of the day or days of the week to reach the right audience. This approach helps optimize budgets, improve ad performance, and ensure ads are shown when consumers are most likely to convert. In this post, we’ll explore the ins and outs of retail media dayparting strategies, backed by key data points to guide your efforts.
Why Dayparting Matters in Retail Media
Not all shopping hours are created equal. Understanding when your target audience is most active allows you to serve ads during peak engagement times, ensuring your advertising dollars work harder. According to Nielsen, 70% of retail purchases are influenced by digital touchpoints, but these touchpoints vary by time of day and day of the week. For instance, studies show that:
Weekday Evenings: Shoppers are more likely to browse and make impulse purchases after work hours (6 PM – 9 PM).
Weekend Mornings: Conversion rates spike on weekends, particularly in the morning hours (9 AM – 12 PM), as consumers often engage in planned shopping.
Mid-Week Sales: Promotions run on Tuesdays and Wednesdays tend to see higher engagement as consumers look for mid-week deals.
Crafting a Successful Dayparting Strategy
1. Analyze Historical Performance Data
The foundation of any successful dayparting strategy is data. Start by reviewing your historical performance metrics to identify trends in audience engagement, click-through rates (CTR), and conversion rates by hour and day. Many retail media platforms, such as Amazon Ads and Walmart Connect, offer detailed analytics that can help pinpoint these patterns.
Key Insight: A recent study by Statista found that ad click-through rates were 25% higher during peak shopping hours compared to non-peak hours.
2. Segment Your Audience
Different demographics have distinct shopping behaviors. For example:
Working Professionals: More likely to shop during lunch breaks or after work.
Stay-at-Home Parents: Often shop during mid-morning or early afternoon hours.
Gen Z and Millennials: Heavy mobile users who engage with ads late at night.
Tailoring your dayparting strategy to these segments ensures your ads reach the right people at the right time.
3. Leverage Retailer Insights
Retail media networks provide tools to refine your dayparting efforts. Platforms like Instacart and Target Roundel offer shopper insights that reveal when users are most active. Use these insights to align your campaigns with high-traffic periods.
4. Test and Optimize
Effective dayparting requires ongoing testing. Run A/B tests to compare performance across different time slots, and adjust your schedules based on real-time data.
Pro Tip: Combine dayparting with other targeting features, such as geo-targeting or keyword optimization, for even better results.
Dayparting in Action: Examples from Leading Retail Media Platforms
Amazon Ads
Amazon’s Sponsored Products campaigns allow advertisers to set specific times for their ads to run. According to Amazon’s internal data, campaigns optimized for high-conversion hours see up to 20% higher return on ad spend (ROAS).
Walmart Connect
Walmart Connect provides hourly performance data, enabling advertisers to tailor campaigns for specific times of day. For example, grocery ads tend to perform best during early mornings when consumers are planning meals for the week.
Instacart Ads
Instacart’s data shows that ads placed during peak grocery shopping hours (5 PM – 7 PM on weekdays) achieve higher engagement rates, especially for promotions on essentials like produce and snacks.
Challenges and Considerations
While dayparting offers significant advantages, it’s not without challenges:
Time Zone Differences: If your audience spans multiple regions, coordinating ad schedules can be complex.
Seasonality: Shopping patterns fluctuate during holidays and seasonal events, requiring adjustments to your dayparting strategy.
Overlapping Campaigns: Running multiple campaigns across different platforms may lead to scheduling conflicts or ad fatigue.
To address these challenges, invest in advanced tools or work with experienced retail media partners who can help streamline your efforts.
Measuring Success
Key performance indicators (KPIs) to track include:
CTR: Measure how well your ads attract clicks during specific time slots.
Conversion Rates: Identify the times when shoppers are most likely to complete a purchase.
ROAS: Evaluate the profitability of your campaigns during peak vs. non-peak hours.
Example: A retailer targeting late-night shoppers found that optimizing campaigns for 8 PM to midnight increased their ROAS by 30% compared to running ads 24/7.
Conclusion
Dayparting is a powerful strategy for brands looking to maximize their retail media investments. By understanding when your audience shops, leveraging platform-specific tools, and continuously optimizing your campaigns, you can drive higher engagement and better ROI.
As the retail media landscape evolves, staying ahead of the competition will require adopting advanced tactics like dayparting. Don’t leave potential sales on the table—start fine-tuning your ad schedules today and watch your results soar.