Most marketing calendars have four quarters. The smart ones have five.

Q5 – the period from December 26 to mid-January – is one of the most overlooked opportunities in modern marketing. While competitors wind down after Christmas, advertising costs drop 10-30%, competition disappears, and consumer intent stays high. Whether you're a B2C brand capitalizing on gift card redemptions or a B2B company targeting Q1 budget planning cycles, the data from 2024-2025 proves this window delivers measurable advantages.

What Is Q5 Marketing?

Q5 marketing refers to advertising and promotional activities during the post-holiday period from December 26 to mid-January. While not a literal "fifth quarter," this period exhibits marketing dynamics distinct enough from both Q4 and Q1 to warrant separate strategic treatment.

Different platforms define it slightly differently:

• TikTok: December 26 - January 8

• Meta: December 18 - January 31

• General consensus: December 25/26 - mid-January

The unifying characteristic: CPMs drop starting Christmas Day and remain low until mid-January, creating a unique advertising window with lower costs, less competition, and sustained consumer demand.

Why Companies Skip Q5 (And Why They're Wrong)

The Usual Reasons:

1. Budget Exhaustion
After aggressive Q4 spending, most marketing budgets are depleted. Teams hesitate to spend "next year's budget" in late December.

2. Team Vacations
Reduced staffing makes campaign management challenging without automated systems.

3. Three Fatal Misconceptions

"Consumers are offline and disengaged"
Reality: 70% of consumers plan to shop the week after December 25 (NRF, Dec 2024). 84% use Google or YouTube to shop post-Christmas (Google/Ipsos).

"Consumers have no money left"
Reality: 60%+ received gift cards totaling $28.6 billion (NRF). By Valentine's Day, 47% spend all their cards and 74% use at least half (TSG). When they redeem, 80% spend an extra $81 beyond card value.

"The shopping season ends December 25"
Reality: December 25 - January 1, 2024 saw the highest sales growth of any period (Mastercard SpendingPulse).

Q5 vs Q4 vs Q1: The Performance Gap

Advertising Costs

Source: Right Side Up/Varos 2024

Consumer Behavior

Sources: Google/Ipsos Holiday Shopping Study 2024-2025; NRF

The Q5 Advantage: 2024-2025 Data

Lower Costs, Higher Intent

Cost reductions:

• CPMs down 10-30% across platforms

• Cost per click dropped 10% across devices

• Impressions surged 94% in the U.S.

• Some brands report 35% CPM reductions with maintained/improved conversion rates

Consumer spending stayed strong:

• U.S. holiday sales (Nov 1 - Dec 31): $994.1 billion (+4% vs. 2023)

• December 25 - January 1 saw highest sales growth of any period

• 87% of Q5 shopping occasions result in a purchase (vs. 3-5% typical e-commerce conversion)

The gift card factor:
$28.6 billion in gift cards drive sustained purchasing power. Nearly half are redeemed by Valentine's Day, with 80% of recipients spending an extra $81 beyond card value.

Competition disappears:
60-70% of advertisers pause after Christmas, giving active brands higher share of voice and better placements.

The Disadvantages (Reality Check)

1. The Window Is Closing
Early adopters (2019-2021) saw 35-40% CPM drops. By 2023-2024, Meta showed 23% drops. As awareness grows, advantages shrink.

2. Not All Channels Are Equal
Google Search/Shopping show minimal Q5 benefit (-3% to -6% CPM). TikTok and Meta offer the strongest advantages.

3. Short Execution Window
You have 2-3 weeks of optimal conditions. CPMs recover in late January.

4. Category Limitations
Q5 works best for resolution-aligned products and gift card-friendly categories. B2B with 6+ month sales cycles should skip it.

5. Resource Constraints
Limited team availability requires pre-planning. You can't wing it with everyone on vacation.

Which Industries Win in Q5?

B2C: Top Performers

Health & Fitness (Q5 Champion)
+38% app installs in Jan 2024 vs. Dec 2023 (Adjust). Direct resolution alignment creates perfect conditions.

Beauty & Personal Care
Revenue grew throughout entire Q5 2024-2025. Shift from celebration products to routine self-care drives sustained demand.

Apparel & Fashion
61% of gift cards purchased for clothing (TSG). Gen Z share of clothing sales grew ~1.5% in Q4 2024 vs. 2023 (JPMorgan).

E-commerce & Retail
Gift card redemption drives 47% to spend all cards by Valentine's Day. When they do, 80% spend extra $81 beyond value.

Home Organization & Productivity
"Fresh start" motivation peaks early January. 52% of gift cards purchased for home improvement (TSG).

Tech & Electronics
December is peak for new device activations. Creates opportunity for accessories, apps, subscriptions, smart home products.

Travel
Experience gifts showed 57% purchase intention in 2024 (+2 points vs. previous year, Circana). Winter downtime drives planning for upcoming year.

Q5 for B2B: A Different Playbook

Most Q5 content ignores B2B. But certain B2B companies can capture significant advantages – particularly those targeting SMBs, selling to individuals, or operating with shorter sales cycles.

When Q5 Works for B2B

Marketing Technology & Tools (Highest Potential)
Your buyers (CMOs, marketing directors) are actively planning Q1 strategies during late December/early January. Lower CPMs for lead gen campaigns when decision-makers are in planning mode. Example: DOJO AI targeting "Q1 marketing planning" while CPMs are 20-30% lower.

Platform priority: LinkedIn (60-70% budget), Google Search (20-30%)

SMB Services & Tools
Small businesses operate more like consumers with faster decisions. Business owners planning for new year, setting goals. SMB tools typically have 1-4 week sales cycles (fits Q5 window).

Professional Development & Corporate Training
Corporate training budgets refresh January 1. "Upskill the team for 2025" mindset peaks. Individuals buying for themselves (expense later) creates dual buying cycle.

Business Finance & Planning Tools
Q4 close and Q1 planning create natural demand. Year-end financial review, tax prep, budget planning all spike during Q5.

Productivity & Collaboration Tools
Works for tools targeting individuals or small teams with short sales cycles and low price points.

B2B Q5 Advantages (Different from B2C)

Q1 Budget Planning Alignment
Most companies finalize Q1 budgets late December/early January. Your ads reach buyers at the exact moment they're making purchasing decisions.

Decision-Maker Accessibility
Q4 buyers are drowning in year-end chaos. Q5 decision-makers have mental space for strategic thinking.

Lower Lead Generation Costs
Same CPM drops apply to B2B. If Q4 CPL is $150, 20% lower CPMs drop it to $120 – same budget generates 25% more leads.

Less Competitor Noise
60-70% of B2B advertisers pause campaigns. Higher share of voice, lower email volume, fewer competing sales calls.

B2B Platform Strategy

LinkedIn Ads: Primary Channel
Decision-makers remain active during holidays. Professional context. Precise targeting. January engagement spike as professionals return.

Budget allocation: 60-70% LinkedIn, 20-30% Google Search, 10% other/testing

Google Search: Intent Capture
Target "[category] software 2025," "best [tool] for small business," "Q1 [solution] implementation."

Email Marketing: Underutilized
Lower inbox competition, higher open rates in early January, planning-focused audience receptive to strategic content.

When B2B Should Skip Q5

❌ Enterprise with 6+ month sales cycles
Multi-stakeholder decisions don't fit 2-3 week window.

❌ Complex, high-touch sales
Requires multiple demos, POCs, security reviews. Sales team unavailable during holidays.

❌ Non-calendar fiscal years
If target customers have June/September fiscal years, Q5 doesn't align with budget planning.

❌ Services requiring deep implementation
If implementation takes 3+ months or onboarding must start immediately.

Better strategy for these companies: Rest, plan Q1 thoroughly, keep minimal "always-on" for brand presence.

B2B Q5 Success Metrics (Different from B2C)

B2B rarely sees closed revenue in Q5 window. Focus on leading indicators:

Primary metrics:

• Cost per lead (expect 20-30% lower than Q4)

• Lead volume

• Demo/trial requests

• Sales qualified leads (SQLs)

• Meeting bookings

Long-term tracking:

• Q5-sourced pipeline value

• Conversion rate: Q5 lead → closed deal

• CAC for Q5-acquired customers

• ROI measured over 3-6 months

Should You Invest in Q5? Decision Framework

✅ STRONG FIT - Invest 15-20% of Q4 Budget

If you check 3+ boxes:

• Product aligns with New Year resolutions (fitness, organization, finance, education)

• You have inventory to clear from Q4

• You accept gift cards and can create redemption campaigns

• Target audience skews younger (Gen Z/Millennial)

• E-commerce, DTC, or digital products

• B2B targeting Q1 budget planning (martech, SMB tools, professional development)

• Sales cycle under 6 weeks

• Can maintain basic campaign management with reduced staff

⚠️ MODERATE FIT - Test with 5-10% Budget

If you check 2-3 boxes:

• Category sees moderate Q5 interest (apparel, beauty, home goods)

• Limited budget (~5-10% of Q4 remaining)

• Product doesn't directly tie to resolutions but can be positioned for "fresh starts"

• Testing new markets or audiences

• Have automated campaigns requiring minimal management

❌ POOR FIT - Skip Q5

If you check 2+ boxes:

• B2B with 6+ month sales cycles

• Budget completely depleted

• Zero team availability for campaign management

• Seasonal product unrelated to January themes

• Fulfillment/inventory constraints

• Primary channels are Google Search/Shopping (minimal Q5 advantage)

• Enterprise B2B requiring complex procurement

Q5 Strategy: How to Execute

Budget & Timing

Budget: Reserve 15-20% of Q4 budget for Q5 (strong fit) or 5-10% (moderate fit)

Timeline:

• Dec 26-31: Peak opportunity – clearance campaigns, heavy retargeting, gift card messaging

• Jan 1-7: Resolution peak – "New Year, New You" campaigns, fresh start positioning

• Jan 8-15: Extended opportunity – sustain winners, scale top performers

• Jan 16+: Wind down – CPMs recover, transition to Q1

Platform Priorities

B2C:

1. TikTok (-27.5% CPM) – Highest ROI

2. Meta (-23% CPM) – Strong opportunity

3. YouTube (-17% CPM) – Moderate value

4. Skip: Google Search/Shopping (only -3% to -6%)

B2B:

1. LinkedIn (-15-20% CPM) – Best for decision-makers

2. Google Search (-14% CPM) – Intent capture

3. Email (no additional cost) – Lower inbox competition

Messaging Strategy

Post-Holiday (Dec 26-31):

• "Extended Holiday Sale"

• "Use Your Gift Card Here"

• "Clear Out, Fresh Start"

New Year (Jan 1-15):

• Fresh start positioning (avoid clichés)

• Resolution support

• "Start 2025 Right"

B2B-Specific:

• "Plan Your 2025 [Strategy/Stack]"

• "Start Q1 Prepared"

• "Leave [Problem] in 2024"

Resource-Light Execution

Pre-Q5 prep (do in December):

• Set up campaigns in advance

• Create and approve creative

• Configure automated rules

• Set up alerts and scheduled reports

During Q5 (minimal management):

• Daily: Check alerts (15 min)

• Every 2-3 days: Pause underperformers, scale winners (30 min)

• Weekly: Full performance review (1 hour)

FAQ: Q5 Marketing

What is Q5 in marketing?

Q5 refers to the post-holiday advertising period from December 26 to mid-January. This period exhibits unique dynamics including 10-30% lower CPMs, reduced competition, and sustained consumer spending driven by gift card redemptions and New Year's resolutions.

Is Q5 marketing worth it?

Yes, for the right brands. Q5 delivers 10-30% lower CPMs and access to 70% of consumers who plan to shop post-Christmas, with 87% of shopping occasions resulting in purchase. Worth it if you sell resolution-aligned products, accept gift cards, operate in e-commerce/DTC, or (for B2B) target Q1 budget planning with short sales cycles. Not ideal for B2B with 6+ month cycles or brands with depleted budgets.

Why do advertising costs drop during Q5?

Most brands stop advertising after Christmas (60-70% reduction in advertisers), marketing teams take vacations, and budgets are exhausted after Q4. This creates less demand for ad inventory while supply remains constant, driving CPMs down 10-30%.

What industries perform best in Q5?

B2C: Health & fitness (+38% app installs), beauty, apparel (61% of gift cards), e-commerce, home organization, tech, travel.

B2B: Marketing technology, SMB tools/services, professional development, business finance, productivity tools (all with short sales cycles targeting Q1 planning).

Does Q5 work for B2B marketing?

Yes, but only for specific segments. Works well for marketing technology, SMB-focused tools, professional development, and any B2B with 2-6 week sales cycles targeting Q1 budget planning. Doesn't work for enterprise B2B with long (6+ month) sales cycles or complex multi-stakeholder decisions.

How much should I budget for Q5?

Reserve 15-20% of Q4 budget if you're a strong fit (resolution-aligned products, e-commerce, short-cycle B2B). Allocate 5-10% if moderate fit (apparel, beauty, general retail). Example: $100K Q4 budget → $15-20K for Q5, yielding 30-50% more reach than same spend in Q4.

What's the best advertising platform for Q5?

B2C: TikTok (-27.5% CPM) and Meta (-23% CPM). Skip Google Search/Shopping (-3% to -6%, minimal advantage).

B2B: LinkedIn Ads (-15-20% CPM) for decision-makers, Google Search for intent capture. Allocate 60-70% to LinkedIn, 20-30% to Google.

Do consumers really shop after Christmas?

Yes. 70% plan to shop the week after December 25 (NRF). 87% of Q5 shopping occasions result in purchase – higher than any other holiday period (Google/Ipsos). December 25 - January 1, 2024 saw highest sales growth of any period (Mastercard).

How long does the Q5 opportunity last?

Core opportunity lasts 2-3 weeks (December 26 - January 15). Week 1 (Dec 26-31) shows peak opportunity with lowest CPMs. Weeks 2-3 (Jan 1-15) maintain strong opportunity with sustained low CPMs. By Week 4+ (Jan 16+), CPMs begin recovering.

Is the Q5 opportunity shrinking?

Yes. Early adopters (2019-2021) saw 35-40% CPM drops. By 2023-2024, Meta showed 23% drops. However, Q5 still offers meaningful 10-30% cost advantages and reduced competition. Early adopters capture best opportunities before window closes further.

The Bottom Line

Q5 marketing represents a proven opportunity with substantial 2024-2025 data across multiple years and platforms. While advantages are shrinking as awareness grows, the period still offers 10-30% cost reductions with high intent and reduced competition.

The data:

• 70% of consumers plan to shop post-December 25 (NRF)

• 87% of Q5 shopping occasions convert (Google/Ipsos)

• CPMs drop 10-30% across platforms (Right Side Up/Varos)

• $28.6 billion in gift cards drive post-holiday spending (NRF)

• 20-30% lower B2B lead acquisition costs

For B2C: Brands in fitness, beauty, apparel, home organization, and e-commerce that pre-plan and reserve budget capture strongest results.

For B2B: Marketing tools, SMB services, and professional development companies targeting Q1 budget planning see ROI materialize in Q1-Q2 closed deals.

Critical success factors:

1. Pre-planning (Q5 requires advance prep)

2. Budget allocation (reserve 15-20% of Q4)

3. Platform selection (TikTok/Meta for B2C, LinkedIn for B2B)

4. Category fit (resolution/Q1 planning alignment)

5. Speed of execution (2-3 week window)

The question isn't whether Q5 works. It's whether you'll capitalize on it in 2025 before more competitors discover this hidden quarter.

Your competitors are dark. Costs are down. Consumer intent is high. The window starts December 26.

References

Primary Sources:

• National Retail Federation (NRF) - Holiday sales, gift card data, consumer shopping plans

• U.S. Census Bureau - Retail sales data

• Google Think with Google / Ipsos Holiday Shopping Study - Conversion rates, consumer behavior (21,463 purchases across 8 markets)

• Mastercard SpendingPulse - Sales growth data

• JPMorgan - Demographic spending trends

Industry Research:

• Right Side Up/Varos - CPM benchmarks across platforms

• The Strawhecker Group (TSG) - Gift card redemption and spending patterns

• Adjust - App install and session data

• TikTok for Business - Platform-specific purchase lift data

• Circana - Experience gift trends

All statistics current as of December 2024 - January 2025

Article optimized for: Q5 marketing, Q5 marketing B2B, new year marketing campaign, post-holiday advertising strategy, Q5 advertising, gift card marketing strategy, post-Christmas marketing, LinkedIn ads Q5, B2B SaaS Q5 strategy

Word count: ~6,800 words
Last updated: December 2024