How many businesses reduce their marketing expenditure in the first quarter of every year, often due to post-holiday budget constraints and a general slowdown in consumer spending?
According to industry reports, quite a few.
“Q1 (January to March) often experiences a dip in ad revenue,” reports Holid.
Yet, as the year progresses, these same businesses often ramp up their marketing efforts in the second and third quarters.
This trend aligns with another key finding: According to MediaPost the cost per thousand impressions (CPM) typically falls by 33% during Q1.
Paradoxically, this seasonal surge in spending later in the year is often driven by “use-it-or-lose-it” budget policies.
Brainzooming, a strategy and innovation consultancy, says “a UIOLI (use-it-or-lose-it) budget system encourages departments to launch projects that would cost money in the coming year, using this year’s remaining funds.”
This recurring pattern of cutting back in Q1 and ramping up later can result in missed opportunities.
Sustaining—or even increasing—marketing efforts during Q1 allows businesses to capitalize on reduced competition and lower advertising costs.
With fewer brands vying for attention, businesses can maximize their budgets, reach larger audiences, and gain a competitive edge.
“Marketing during Q1 isn’t just about saving money,” Tweedly says. “It’s about amplifying your voice when fewer brands are vying for attention. That’s how you gain momentum early.”
How to Make Q1 Marketing Count
Businesses should focus on strategies that drive both immediate and long-term results to maximize the benefits of Q1 marketing.
Here are key areas to consider:
Test Campaigns and Messaging
Q1 is an ideal time to experiment with creative ideas and refine your approach. By running A/B tests or trying new ad formats, you can uncover what resonates most with your audience without the high stakes of peak advertising seasons.
“The quieter landscape of Q1 is perfect for fine-tuning your messaging,” Tweedly says. “The insights you gain now can guide your strategy for the rest of the year.”
Strengthen Your Digital Presence
With consumers and businesses setting priorities for the year ahead, Q1 is an ideal time to optimize your digital platforms.
Refresh your website, enhance SEO and create valuable content that positions your brand as a trusted solution.
According to HubSpot, businesses that adopt an adaptable, data-driven approach in Q1 are better prepared to respond to market shifts throughout the year.
Engage Your Audience Early
Engaging your audience early in the year is crucial for building trust and loyalty, especially for businesses that depend on repeat customers or long-term contracts. Early engagement can lead to increased retention and referrals.
For instance, referred customers have a 37% higher retention rate than those acquired through other marketing channels. Leads from referrals also have a 30% higher conversion rate than those generated by different marketing channels.
Real-World Success Stories
Brands that leverage Q1 marketing see noteworthy results. For example:
- Retailers: Post-holiday campaigns can tap into New Year’s resolutions and seasonal needs to re-engage customers.
- For example, think promotions like, “New year, new you? Refresh your wardrobe with our latest arrivals—now 30% off.”
- Or “Winter skin feeling the effects? Treat yourself to a rejuvenating facial and start the year glowing!”
- For example, think promotions like, “New year, new you? Refresh your wardrobe with our latest arrivals—now 30% off.”
Campaigns like these drive traffic and sales by addressing customers’ current priorities and aspirations.
- B2B Companies: Q1 is the perfect time to align your marketing efforts with your audience’s annual goals and priorities.
- In the lighting industry, messaging such as “Power Smarter Spaces: Brighten Your Bottom Line with Cost-Saving Solutions” can position your brand as a key resource for operational excellence and cost efficiency.
- For the cleaning supplies sector, campaigns like “Set the Standard: Stock Up on High-Performance Cleaning Solutions” can resonate with businesses prioritizing streamlined operations and elevated cleanliness standards.
- In the lighting industry, messaging such as “Power Smarter Spaces: Brighten Your Bottom Line with Cost-Saving Solutions” can position your brand as a key resource for operational excellence and cost efficiency.
These strategic campaigns build anticipation, address immediate needs, and set the stage for long-term success.
- Associations: With members planning annual events, budgets or initiatives, Q1 is an ideal time to promote membership benefits, upcoming conferences and value-added resources. Staying active helps organizations boost engagement and attract new members during key planning periods.
- “We’ve seen clients build incredible momentum in Q1 by staying consistent while their competitors go quiet,” Tweedly says.
Setting the Foundation for a Strong Year
Marketing in Q1 goes beyond immediate results. It sets the stage for growth in the quarters to come. By investing in advertising, refining strategies and engaging audiences now, businesses can position themselves for success throughout the year.
“Q1 is the launchpad for everything that follows,” Tweedly says. “Lower ad costs, reduced competition and strategic planning make this quarter an opportunity for growth.”
Ready to drive year-round success with lower-cost digital ads? Contact CMA today to craft a winning strategy.
