Ad scheduling can help you better target your ads by selecting the times when you want to show ads. For example, if you offer special late night deals, you can set up an ad group to show those ads only between 10pm and 3am. You can also set different bids for different hours, so if you have better conversion rates during certain hours, you can set your bids higher to try and get more impressions and clicks during that time.
Source (Inside AdWords)
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