Matt Coote is Snap’s Head of Enterprise ANZ. In his opinion piece, he explains the unique opportunities Q5 presents to brands.
Beginning on the last shipping date before Christmas (19 December for Express Post), this often-untapped moment follows the peak of the shopping season period. And as supply chain disruptions continue and consumers are increasingly looking for better deals during a time of economic uncertainty, earlier shopping is leading to earlier shipping. The Q5 window has grown over the past few years, now continuing through the new year into January.
Given that Q5 continues to expand, this year may prove to be a greater opportunity than ever. Previous years have seen a significant decline in CPMs compared to the holiday season’s peak. Now, however, extending campaigns through January isn’t just a way to save on your marketing budget — it’s also a strategy for advertisers to reach ready and waiting audiences in Q5.
A Unique Business Opportunity
Coupled with inflation, supply chain disruptions have had a major impact on consumer habits, with 68% of consumers saying they plan to start their holiday shopping earlier this year. So, as more and more shoppers are searching for better deals, early and last-minute purchases are expanding the gifting season on either side of the traditional Q4 shopping period. This follows the trend from 2021, when more than 1 in 2 consumers said they lowered their expectations for timely shipping, and 95% of merchants adjusted their planning in response to market conditions.
For brands, this disruption equals opportunity. Based on past and present insight, an earlier shopping season frees up advertising inventory while releasing the auction sooner, so advertisers can capitalise on reduced competition at a more efficient CPM.
Targeting Q5 doesn’t just mean brands save on their advertising budget — it also means they can reach much larger audiences. For example, Christmas Day sees a significant rise in mobile-device activation among Snapchatters, along with a surge in app installations to prepare for the new year. Q5 shows particularly high consumer intent around self-improvement, such as health, wellness, and fitness, finance, career and education, and hobbies.
So we know that Q5 is a great time for advertisers to make savings, and tap into a highly engaged audience. But how can brands best leverage the Q5 shopping moment?
Here are some top tips to get started:
The Golden Rules of Q5
• Diversify your ad formats. We know that multi-product campaigns drive better results, increase efficiency and improve performance.
• Take advantage of app installs reaching an all-time high during Q5. Expand your targeting to reach new user demographics who might be looking for new apps for their “New year, new me — why not?” mindset.
• Let us do the heavy lifting for you. Use dynamic Auto-Bidding to help manage your campaigns throughout Q5.
• Measure what matters, iterate, and optimise. Find out what’s working with our measurement tools, test, learn, and optimise your ad campaigns to reach your goals.
Creative Best Practices for Q5
• Test (and learn!). Use Snapchat’s Campaign Lab A/B testing and other tools.
• Tailor your creative. Seasonally relevant content drives engagement.
• Early UVP – establish value proposition as early as the 1st second of the ad. Enhance your message takeaway with immediate value props like featuring your brand logo or landing key messaging with minimal text.
• Adjust your messaging. Consumers may be more receptive to motivational and inspirational language, especially around achieving or reaching new goals in their “New year, new me — why not?” mindset.
• Align your CTAs with seasonal moments. Inspire action for enhanced engagement.
Let’s go!
Before you hang up the tools for 2022, take a look at your Q5 approach and execution. As well as lowering advertising costs and more favourable ad auctions, Q5 is also a tentpole moment for the post-shopping season, and a huge opportunity for brands to target eager consumers.
With the seasonal surge in app installs and high consumer intent around the new year, particularly among the Snapchat Generation, brands should take advantage of Q5 to finish 2022 off with a bang — and ring in 2023 with a head start.
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Top image: Matt Coote
