Out with the Old, In with the Q5 Revenue

Leverage the opportunity of post-holiday engagement with Q5

All I want for Christmas is my two front teeth and an increased ROI.

Advertisers and marketers alike will soon face Q5. This elusive fifth quarter is not a traditional part of the calendar year but rather represents the period after Christmas until mid-January. It’s a time when consumers are often more relaxed, off work, and spending a significant amount of time on their devices, making it ripe with opportunities for brands.

Q5: A Hidden Cash Cow

This period is characterized by high digital engagement but often lower competition in ad spaces, as many companies have wrapped up their holiday campaigns. Consumers are armed with new devices and gift cards, making them eager to download apps and make purchases. They’re also likely to spend more time exploring their new smart TVs and streaming devices, making this a perfect time for brands to increase their campaigns’ reach.

Consumer Activity and Mobile Apps

• 67% of TikTok users are likely to spend the same amount or more time downloading apps in Q5 compared to a typical week.
• 79% of TikTok users are likely to continue shopping in Q5.
• Meta’s CPM dropped 37% in Week 51, a decrease from its average CPM of $9.75 during Black Friday week (Week 47).
• X experienced a 27% decrease in the average cost-per-conversion and a 5% decrease in the average CPM during Q5.
• Between December 26 and mid-January, Instagram’s CPM experienced a 33% decline.
• In 2022, 70% of holiday shoppers planned to shop the week after Christmas.

How to Leverage Q5

To capitalize on this unique opportunity, mobile and CTV marketers should consider the following strategies:

Time Your Campaigns: Launch campaigns that coincide with the onset of Q5. Users are often in a festive mood and more receptive to trying new apps or services.

Tailor Messaging: Create messaging that resonates with the post-holiday spirit. Highlight relaxation, entertainment, and the joy of new beginnings to align with the mood of the season.

Create Promotional Offers: Introduce special Q5 promotions to entice users to engage with your app or service. This could include rare discounts, extended free trials, or exclusive content.

Leverage New Devices: With many consumers getting new phones or CTV devices for the holidays, ensure your app or content is optimized for these platforms and prominently featured in app stores and marketplaces.

Retarget and Re-engage: Retargeting is also crucial in Q5. Re-engage users who may have installed your app but not used it or those who have interacted with your brand but not converted. Personalized retargeting campaigns can lead to higher engagement and conversion rates.

Case in Point: New iPhones and Apple Search Ads (ASA)

With the holiday season comes a surge of new iPhone activations, as users set up their devices and rush to the App Store to discover and install apps. While many brands exhaust their holiday budgets during Black Friday, Cyber Monday, and the lead-up to Christmas, those who allocate a budget for the post-holiday period can tap into fresh opportunities, particularly within ASA. Consider setting aside a portion of your budget for these strategies:

1. Increase Budgets Temporarily: Anticipate an influx of new iOS users and adjust your budgets to ensure your ads maintain visibility during this high-activation period.
2. Adjust Targeting for New Device Models: Target users who have recently activated the latest iPhone models, as they may be more likely to engage with new apps.
3. Bid on Generic Keywords: Users with new devices may not have specific apps in mind, so bidding on generic terms related to your app’s function can help you capture this audience.
4. Highlight App Features in Ad Copy: Make ad copy compelling and highlight unique features or benefits that can attract new users looking to populate their devices with useful apps.
5. Leverage Apple Search Match: Use Apple’s Search Match feature to match your ad with relevant search terms, capturing a broader range of users.
6. Refresh Creative Assets: Ensure that your ad creatives are updated and resonate with the New Year’s mindset, possibly incorporating themes of the holidays, new beginnings, and resolutions.

Case in Point: Preload Campaigns on Android

Preload campaigns aren’t an option on iOS devices, but for certain app verticals on Android, they can be quite successful. A number of ad networks offer preloads as a campaign type, enabling you to work with original equipment manufacturers (OEMs) and/or wireless carriers to highlight your app on the users’ screen in an ideal placement during device installation—potentially increasing your daily install volume multifold. Here are some recommendations to take into account:

1. Target Device Types of Historically High-Value Users: If you have existing app analytics in place, you should have an understanding of how the user’s device type (e.g. flagship phone vs. budget phone) impact user engagement, retention, and lifetime value (LTV). Work with your preload partner to target your preload campaigns toward device types that produce high-LTV users.
2. Optimize App Onboarding: Ensure that the first-time user experience in your app is smooth and engaging, as this can significantly impact user retention rates. A positive onboarding experience can encourage new users to keep the app installed and use it regularly.
3. Leverage In-App Promotions: Introduce special offers exclusive to the Q5 period. This can incentivize users to engage more deeply with a preloaded app.
4. Customize Messaging: Tailor your app’s welcome messages and push notifications to reflect the festive season and the spirit of new beginnings associated with the New Year.
5. Monitor User Behavior: Use analytics to closely monitor how new users interact with your app. Look for patterns that indicate successful engagement and quickly iterate on aspects of the app that may not be performing as well.

Make Data-Driven Decisions

Make data analytics the cornerstone of your Q5 strategy. Utilizing a comprehensive measurement tool such as Kochava can empower your marketing team with deep insights necessary for success. By analyzing and interpreting user behavior patterns specific to this period, you have the opportunity to refine your campaigns, ensuring they resonate with your audience and deliver optimal results.