Q5: The Most Wonderful Time of Year for Online Advertising

Businesses are accustomed to operating in four quarters throughout the year. For retailers, however, tasked with meeting both in-person and online consumer demand, a fifth quarter has emerged. It’s proving to be a sweet spot for marketers during the holiday season.

The fifth quarter or Q5  is powered by the growth of e-commerce. Online sales have experienced a boost in the last 18 months due to COVID-19. But analysts aren’t expecting the industry’s growth to return to pre-pandemic levels. According to Adobe’s Digital Economy Index, U.S. e-commerce spending is expected to total between $850 billion and $930 billion this year and top $1 trillion in 2022. Retailers looking to make a push this holiday season aren’t settling for a traditional Q4 strategy. Instead, they are parsing out the weeks ahead to deliver nuanced experiences to consumers shopping online. This includes online advertising strategies centered around Q5.

What is Q5?

Q5 is a small window of time between Christmas (or the last day of shipping before Christmas) and New Year’s. It packs a big advertising punch for both retailers and consumers by tapping into gift experiences. Someone inevitably gets a gift they don’t want and looks to ease that disappointment by purchasing a gift for themselves. The consumer picks up a mobile device to search and encounters an ad suggesting they buy a gift for themselves.  The change in messaging creates new opportunities for online retailers.

Online Advertising Basics

There are several elements to consider when planning your online advertising strategy for the holiday season. Savvy marketers are proactive and thoughtful in their approach, crafting a Q4 strategy that seamlessly rolls into Q5. Several factors should be considered when crafting your Q5 strategy. At a minimum, be sure to tick the following boxes:

Messaging

The right messaging is critical to the success of your campaign. In Q4, brands typically promote gift ideas, last-minute bargains, and purchase and delivery options. Brands also use this time to build awareness, especially those in the fitness or beauty industry, anticipating “new year, new you” resolutions come January.

Q5 messaging, however, must shift as consumer mindsets shift. Typically, people begin thinking less of others and more about themselves right after Christmas. They want to cash in on deep discounts. Developing ads with messaging and creative that speaks to that shift can generate additional sales before year-end. After all, consumers are armed with gift cards and bonus bucks, and they’re ready to spend.

Timing

In life, timing is everything, and it’s no different here. Each year, holiday ads seem to run earlier but usually start in earnest around September. By running ads early in the quarter, you have time to see if your messaging resonates with your consumers. If people respond to your ads, you know the messaging is on point. Then you can continue running those ads throughout Q4. But if your messaging is not resonating with your consumers, you have time to tweak it as necessary and capture your audience in time for peak holiday spending.

When running brand awareness campaigns, repeating exposure is the name of the game in advertising. The old rule of thumb is the Rule of Seven, which states that it takes a consumer a minimum of seven times before they remember your product or company and act, and that rule still holds.

Platforms

Running ads on multiple platforms gives you a level of consistency and frequency that extends your reach. But, being strategic is everything. For example, a life coach and a curling iron will perform better on different platforms, right? Consider the product or service you’re offering, and the audience when planning campaigns. This ensures you meet your customer where they are when they are looking for what you’re offering.

Also, a bonus. The cost of advertising tends to go down during Q5, making it an optimal time to ramp up ad frequency. Be sure to have uniform messaging on the platforms you choose to maximize your campaign efforts.

Options for Every Budget

Despite the Q5 opportunity, most advertisers’ focus for the year is over at Christmas. They are more concerned with wrapping up the year than capturing the last week on the calendar. Again, fewer advertisers are competing during that last handful of days before the year ends, lowering ad costs. Consumers are, however, still demanding the products and services they didn’t get or still need. So when most retailers pause advertising after the holidays to access results, those who stay dialed in, get all the attention.

Let’s take social media advertising, for example. Social media advertising can work with a range of budgets. Let’s say you have a budget of $5K to spend on Facebook. With clever targeting, that budget can work just as hard for you as a budget double its size. If you can determine who your most profitable customer is, you can target them. Things to consider include demographics, location, and shopping behaviors, among others. By being intentional about who you put your ads in front of, you can generate an ROI similar to one that a less targeted, more expensive ad campaign might produce.

Also, if you have an existing client list, upload it. Doing so enables you to pull similar audiences in hopes of attracting new, viable customers. This allows you to cast a smaller net but has similar results because you focused on those most likely to convert.

Another trend in social media that serves a small budget well is simplicity. Forget overly produced or flashy ads. Consumers want to see and connect with real people, telling real stories about their life. Authenticity is the most successful avenue for social media right now. Because these ads are very natural and simple, they are not expensive to produce. They are also easy to tweak for placement during early Q4 and Q5.

Make Q5 Count

Q5 is an often overlooked but potentially profitable time of year for online advertising. Being proactive and strategic around this time of year can drive sales and boost brand awareness. Whether social media, search engines, or mobile, online advertising can be beneficial and worthwhile no matter what your budget is. Don’t just assume your year is over on December 25. Q5, the week after Christmas but before New Year’s, holds a tremendous amount of potential sales waiting for you!