Month: October 2024

Why Q5 is a Golden Opportunity for Advertisers on TikTok

As the post-Labor Day hustle fades and the holiday season looms large, marketers start gearing up for the busiest time of the year. But what happens when the holiday dust settles, and shoppers have torn through their presents? Enter Q5, the marketing period that kicks off after Christmas and runs through January. Surprisingly, this quieter stretch is a prime time for advertisers, offering a chance to reach consumers when they’re still eager to spend—minus the high competition and costs seen before the holidays. Many brands are already strategizing for Q5, realizing it’s an unmissable opportunity.

According to Gabriel Nicolau, Head of Product Solutions & Operations for North America, TikTok is uniquely positioned to benefit from this period. “People come to TikTok to discover and take action from that discovery,” says Nicolau. He explains that Q5 gives brands a chance to connect with shoppers who are spending gift cards, holiday money, or using store credits from returns.

Why Q5 is an Overlooked Goldmine for Advertisers

While most brands focus on pre-holiday campaigns, the period following Christmas can be just as profitable. Consumers often have gift cards, holiday cash, and even New Year’s resolutions fueling their spending well into January. In fact, a YouGov survey reported by Business Insider found that 41% of shoppers continue to spend after the holidays are over.

Q5 is not simply an extension of the holiday rush—it’s a prime shopping season in its own right. The key difference? Less competition for ad space and more affordable inventory. And TikTok is leading the charge as the go-to platform for shopping inspiration. Its unique combination of online and offline retail engagement—driven by creative ads and trends—makes TikTok an effective tool for brands looking to maximize their reach during Q5.

TikTok’s ability to drive conversions is backed by impressive statistics, with a retail return on ad spend (ROAS) that’s nearly twice as effective as other media formats, including online video, display ads, and paid search.

Key Takeaways from Last Year’s Q5 Success

Brands that capitalized on Q5 last year gained valuable insights into how to make the most of this profitable season. Here are some of the lessons learned:

• Shopping Peaks in January: While holiday-related content dips after Christmas, shopping content actually spikes in January. TikTok’s data shows a surge in shopping-related posts, as users seek out new products and deals well into the new year.

• Lower Ad Costs, Bigger Impact: The reduced competition during Q5 means brands can achieve more efficient ad spending. With fewer players vying for attention, companies can stretch their marketing budget while still reaching a highly engaged audience of post-holiday shoppers.

• Self-Care Spending: It’s not all about gifts during Q5. Many TikTok users adopt a “treat-yourself” mindset, with 69% planning to buy products for themselves. Brands in sectors like skincare, fitness, and tech can tap into this trend to engage consumers looking to splurge on self-care.

• Emerging Categories: Beyond retail, categories such as fitness, finance, and gaming gain traction during Q5. As people set goals for the new year, advertisers in these sectors have a unique chance to reach new customers through TikTok’s platform.

Nicole Diangson, a Client Partner at Smartly, notes that this shift towards self-investment during Q5 is a growing trend. “People are ready to be influenced and ready to buy,” she explains, making it a crucial period for brands to focus on lower-funnel strategies that capture this heightened purchase intent.