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What is Q5 and why does it matter?

What is Q5 and why does it matter?

This article delves into the untapped potential of the "fifth quarter" or Q5 in the advertising world, extending beyond the traditional holiday season. It explores consumer behavior during this period, emphasizing the continued shopping trend and specific reasons behind it. The piece provides insights on how advertisers can capitalize on Q5, leveraging lower CPM rates and targeting individual shopper needs, post-holiday sales, and cash/gift card spending. The benefits for advertisers, including lower competition and cost-effectiveness, are highlighted. The article also recommends strategies for driving Q5 results, such as collaborating with creators and personalizing influencer strategies. It concludes with a key takeaway for advertisers to embrace the unique potential of Q5 for maximizing brand profits and audience reach. SEO keywords: fifth quarter, Q5, advertising, consumer behavior, post-holiday sales, influencer marketing, CPM rates, brand profits, audience reach.
5
minute read
Published
Mar 14, 2024
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As we approach the final months of the year, advertisers and creators are preparing for their final sprint to captivate consumers’ attention. The holiday season, which includes Black Friday, Cyber Monday and Christmas, offers prime opportunities for businesses to elevate their sales.

But there’s an even better time of the year, which not many brands have capitalized on. As the traditional holiday season comes to an end, CPM rates decline and stay low until mid-January. This opens up a window of opportunity, often referred to as the "fifth quarter," or Q5.

This relatively recent trend in consumer behavior presents a unique chance to extend the peak shopping season that kickstarted in Q4. This "hidden", fifth quarter, can be a game-changer for advertisers, boosting brand profits and expanding their audience reach at a cost-base that’s more efficient than Q4.

It's an opportunity to make the most of the year's end before it's officially finished. Here’s how to capitalize on Q5:

Q5 and Creator Performance Marketing:

Understanding Q5:

In Q4, Cyber Five takes place, which is the five day period between Thanksgiving and Cyber Monday, also referred to as Cyber week. Q5 refers to the period following the traditional Q4. Q5 starts the weeks in between the conclusion of the holiday season and during the beginning of Q1 in the next year.

The importance of Q5

Just because the holiday season is over, doesn't mean that consumers stop shopping. Significant evidence indicates that as a matter of fact, the opposite is true and the shopping frenzy continues. Google’s research on consumers in the U.S. last year, showed that just as many people were shopping post holiday season as the week before Cyber Five. Google classifies shoppers into four types: deliberate, deal-seeking, determined, and devoted. The Devoted shoppers, in particular, stand out during Q5, as they don't limit their shopping to specific seasons and, notably, 57% of them engage in self-gifting. According to TikTok,79% of users on the social network are likely to continue shopping in Q5.

How to make the most of Q5

To make the most of Q5, it's crucial to understand why consumers shop in this period. In the upcoming paragraphs, we'll explore the top three reasons behind consumer shopping. This knowledge will help your brand make informed decisions and effectively leverage Q5 to your advantage.

  1. Q5 focuses on the individual shopper
    After the holidays, people shift their focus to self-care, self-reflection, setting resolutions, and working toward their personal goals. According to TikTok’s statistics, 96% of users take the time to reflect on specific goals they’re focusing on in the next year. As the holiday season cools down, the trend of self-care heats up.
  2. Post-Holiday Sales After the holiday festivities, people are eager to find those fantastic post-holiday sales. These sales come with irresistible discounts and special offers that are sometimes even better than they were during the holiday season.
  3. Consumers spend Cash And Gift Cards
    In Q5, a significant 32% of TikTok consumers allocate their holiday cash and gift cards towards making purchases. Advertisers can strategically position their offers to attract these consumers looking to make the most of their holiday monetary gifts.

Benefits for advertisers

Many brands take a breather during this time, which means there's less competition and hence, a lower price for advertising. This makes it easier for advertisers to shine and grab attention.. The cost-effectiveness allows advertisers to maximize marketing budgets. Advertisers can use this period to tap into the hidden opportunities of this "invisible" quarter in the year. It's a chance to make their mark and thrive while consumers are still actively shopping

How to drive Q5 results?

For advertisers Q5 sounds like a golden opportunity. But is advertising during Q5 actually a good idea for all businesses? Well, the answer isn't a one-size-fits-all.

  1. Advertisers need to consider if it makes sense for them to take advantage of the lower advertising costs. Check this CPM guide for Q5, which breaks down the costs of digital advertising based on data analysis from previous years, and see if it makes sense for you to jump in. In simple terms, whether or not it's the right move depends on your unique situation and how effectively you can deploy your advertising budget during this time.
  2. TikTok’s research reveals that 30% of users are looking for creators and influencers to help them achieve their goals in 2024, and 41% of consumers are keen on creators sharing their own New Year's resolutions. If your brand aligns with people's New Year's resolutions or common goals, we recommend utilizing Spark Ads and Partnership Ads,. These formats convert creator-generated content into authentic and effective advertisements as you can see here.
  3. A noteworthy point to consider is for creators and influencers not to impose a single New Year's resolution campaign on your entire audience. Instead, collaborate with creators to tailor resolutions that resonate with their dedicated followers. This approach ensures that your messaging aligns naturally with the specific communities and audiences creators have nurtured. The authenticity of creator-made content plays a crucial role in conveying your brand's mission and values, offering your audience a sincere look at what your brand represents. It's a means to allow your brand's authentic identity to stand out. If you do strategize for Q5, it is thus important to add creators to the media mix.
  4. Personalize your influencer strategy. During Q4, consumers focus on finding the right gifts for their loved ones, while in Q5 it’s time to think about themselves. Creators help to authentically tap into this sentiment, showing the audience how your product worked for them.
  5. Lastly, analyze your audience by reviewing the performance of your past ads. This analysis will help you identify targeting preferences and identify the most effective Custom and Lookalike audience segments. Q5 is an excellent time to convert engaged audiences on platforms like Meta and TikTok into product sales, either during Q5 itself or extending into Q1.

Key Takeaway for Advertisers

In conclusion, Q5 offers a promising opportunity for advertisers to boost their brands profits and expand their audience reach at a cost-base that’s more efficient than Q4. By collaborating with creators, to produce authentic and effective content, and by leveraging valuable insights from your 2023 performance data to craft campaigns, you can make the most of this season.

Additionally, using custom and look-alike audiences to refine your targeting strategies will help you drive better results. Embrace the unique potential that Q5 presents, and your advertising efforts are more likely to yield positive outcomes.

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