While your competitors are sleeping, consumers are awake and ready to engage. Leverage the power of the “invisible quarter” to gain an edge.

Most businesses view the calendar year in four quarters, but savvy marketers recognize a fifth one: Q5. This unofficial “invisible quarter” spans the time between late December and early January, offering a unique blend of opportunity and urgency that can redefine a brand’s trajectory for the upcoming year.

Q5 typically begins post-Christmas and runs into the first weeks of January. It is characterized by reduced competition for ad inventory, lower CPMs (cost per thousand impressions), and a surge in consumer intent as people reflect, reset, and invest in their goals for the new year. While other companies pause operations to recharge, Q5 presents a golden window to engage audiences with targeted and meaningful campaigns.

1. Align with the Post-Holiday Consumer Mindset

Post-holiday shoppers are wide awake and dreaming big! As they plan for a “better life” in the new year, they actively seek inspiration, resolutions, and great deals. Whether it’s a fitness app, financial planning tool, or travel service, consumers are eager to invest in products and services that help them achieve their goals. And with extra holiday money in their pockets, they’re ready to spend. Focus your campaigns on aligning with this reflective, aspirational mindset to give the consumers what they want.

2. Take Advantage of Lower Competition and Costs

While your competitors are taking a post-holiday breather, you’ll have the advantage of reduced competition. Many businesses scale back their advertising spend after Q4, leaving the digital ad marketplace less crowded. This often leads to lower costs per impression or click, allowing you to maximize your marketing budget. Seize this opportunity to dominate ad space and capture attention while others recover from the holiday rush.

3. Double Down on What’s Already Worked

Over the past year, you’ve tested, tweaked, and iterated your strategies to identify what performs best. Now it’s time to lean into those proven tactics. Use predictive analytics and tools like lightweight Marketing Mix Modeling (MMM) to anticipate which channels and campaigns will thrive in the Q5 environment. This is your chance to enjoy the “harvest” of your previous efforts while setting the stage for future success.

4. Focus on Incrementality

Instead of taking big swings, concentrate on driving incremental sales. Design promotions that encourage additional purchases without cannibalizing your regular sales. For example:

• Bundle complementary products: Offer a “start-the-year-right” package deal.
• Add Value: Provide bonus features, exclusive services, or extended warranties to entice buyers.
• Introduce loyalty perks: Reward repeat customers with exclusive discounts or early access to new products. This can encourage further engagement and repeat purchases.
• Promote limited-time offers: Highlight special post-holiday deals that drive urgency without requiring deep discounts. For instance, offer free shipping or a free gift with purchase.
• Upsell during checkout: Suggest premium versions of products or additional accessories that enhance the original purchase.

A little effort can lead to meaningful growth during Q5 without requiring a complete overhaul of your strategy.

5. Bid Strategically and Stretch Your Budget

Optimize your ad spend by leveraging the reduced competition and strategically increasing bids on high-performing keywords or audiences, particularly for search and social ads. With lower CPMs, Q5 offers an opportunity to achieve more impressions or clicks without overspending. Pay special attention to industries with strong post-holiday demand, such as consumer electronics, fitness, winter clothing, toys and gifts. By focusing your budget on these high-potential areas, you can amplify your impact.

Think of it this way: Q5 isn’t just a bonus quarter—it’s a strategic advantage that can set you apart from the competition in the coming year. Many brands are on hold because they’re waiting for budgets to be finalized. But others are like runners poised on the track, waiting for the starter gun. But there’s no rule that says you have to wait. Why not start now? Who wouldn’t want to get a head start on the race we’re all about to spend the next year running?

By aligning with consumer aspirations, leveraging data-driven insights, and optimizing ad spend, marketers can transform this often-overlooked period into a powerful growth engine. As the dust settles on Q4 and your competitors pause, stay proactive and meet consumers where they are—ready to engage, reset, and invest in their future.