Why Q5 Is a Golden Opportunity for Advertisers on the Open Web

Holiday spending doesn’t stop at Christmas. Q5 (the span of time between December 26 and mid-January), also called the “invisible quarter,” is actually one of the best times of the year to advertise. Shoppers are still spending, ad costs are down, and intent is high, with Q5 2026-2027 forecast to be another year of strong growth.

5 Reasons Advertisers Should Invest in Q5

Deloitte is forecasting a 7.5% to 8.4% increase in 2026 e-commerce sales this holiday season, which they define as November 2026 through January 2027. Q5 actually accounts for a large portion of that overall holiday spending; self-gifting, New Year’s resolutions, and other trends all drive the value of Q5, and performance marketers should create a strategy to stay highly visible through mid-January to take advantage.

Q5 is valuable because consumer demand stays high after holiday ads stop running. Many shoppers are still researching, comparing, and discovering products across the open web and through AI. Here are the top reasons why you should invest in Q5 advertising this holiday season.

1. Shoppers Are Still Ready to Spend Online

Although total retail sales went down 0.2% from December 2025 to January 2026, nonstore retailers — which include online retailers — saw sales rise a whopping 10.9% year over year, according to the U.S. Census Bureau. Clearly, shoppers are still ready to spend after the holidays. In fact, a 2025 Snapchat-commissioned Ipsos study found that 60% of consumers continue shopping after Christmas, and 73% of Snapchat users surveyed said they shopped “more or the same” in Q5 vs other times of the year.

According to Google, 87% of Q5 shopping occasions end in a purchase, and post-holiday shoppers are even more likely to make a purchase than those shopping in the peak holiday window.

2. Gift Cards Encourage Spending

According to CapitalOne Shopping, up to 64% of people give at least one gift card during the holiday season, and 63% of consumers use a gift card entirely within one month of receiving it. Plus, Blackhawk Network research found that 83% were looking forward to spending their gift cards on post-holiday deals, while 80% of recipients planned to spend more than their card’s value.

The post-Christmas period, then, is ripe for advertising and deals targeted toward those looking to make the most out of their gift cards. Consider targeting audiences who might be new to a particular brand, or add urgency to ads for using up gift card money before post-holiday deals end.

3. Ad Costs Are Low

Q5 can get pretty quiet in terms of advertising. The big, “hurry up and buy now in time for Christmas” rush is over, so many brands scale back on emails, social posts, and ads. That means there’s less competition for ad space and lower costs for the advertisers who stick around.

Case in point: A 2026 benchmark analysis found that Meta’s CPMs (cost per thousand impressions) peaked at $25.22 in November 2025, then dropped to a 13-month low of $15.74 by January 2026, which is a decrease of about 38%. The size of the dip in CPM varies across channels, industries, and audiences, but it tends to dip across the board.

Low ad costs, combined with shoppers willing to spend, makes Q5 an awesome time to test new creative and new audiences at a lower cost, and outperform your competitors in post-season sales.

4. AI Agents Assist Post-Holiday Shoppers

In 2026, more shoppers are turning to AI tools like ChatGPT and Gemini to find deals, compare products, and get gift ideas. In fact, per Adobe Analytics, traffic to retail sites from generative AI tools jumped an astonishing 693.4% year over year during the 2025 holiday season. Those visitors also converted 31% better than traffic from other sources, while revenue per visit from AI referrals increased 254% year over year.

For advertisers, that means the post-holiday shopping journey is happening more often on the open web. Consumers may start with an AI recommendation, but they still visit websites to research products, compare options, and make purchases. Staying visible on those websites will give you more opportunities to reach shoppers as they move through the buying funnel.

5. Consumers are Shopping for Themselves

After spending weeks buying gifts for everyone else, shoppers turn their attention inward in Q5. They’re treating themselves and setting goals for the new year. According to Google data, 60% of shoppers say they’ll browse online for things they want for themselves after the holidays.

New Year’s resolutions also drive some of that spending. A Washington Post poll found that 48% of Americans made at least one resolution for 2026, and financial goals tied with exercise as the most common resolution category. That means Q5 is prime time for fitness and wellness brands, of course, but also fintech, budgeting apps, and financial services.

Key Takeaways

The holiday shopping season doesn’t end on December 25th. In Q5, shoppers are still spending, redeeming gift cards, and buying for themselves as they set goals for the new year. Ad costs are lower, and more AI-assisted shoppers are landing on the open web. Advertisers who stay visible through mid-January can reach high-intent buyers for less, finishing the season strong.

Frequently Asked Questions (FAQs)

Why do advertising costs drop significantly during Q5, and how does this create a budget advantage?

From late December to mid-January, many brands have typically paused ad spending after the holiday rush. With less competition in the auction, CPMs and other costs drop, even though shoppers are still browsing and buying things with high intent. That gives marketers a chance to reach motivated buyers for less, test new creative and audiences affordably, nurture leads and expand lists, and build visibility and share of voice while competition is less intense.

How does the consumer’s mindset during Q5 differ from Q4, and what kind of messaging is most effective?

The Q4 consumer mindset is typically urgent and external, with a focus on gifts for others. Q5 brings a period of self-gifting and self-improvement, along with gift card redemption and setting goals for the new year. Many are also researching purchases with AI tools before clicking through to a website to buy. Messaging around self-gifting, fresh starts, and making the most of gift card money tends to resonate.

Keep in mind that gifting doesn’t stop completely. According to Google data, 74% of post-holiday shopping occasions are still for someone else, so “belated gift” messaging can run alongside “treat yourself” offers. Q5 can also be a great time to build brand loyalty with newer customers from Q4.

What is the long-term strategic value of investing in Q5, rather than pausing advertising until Q1?

Pausing advertising for a week or two might not seem significant, but it can be a huge missed opportunity during the Q5 period. Performance marketers can use this time of lower competition and reduced ad costs to build brand awareness and momentum, to strengthen the pipeline for the new year.