January is not traditionally thought of as a month of robust consumer spending. With the holidays dominating the latter half of November and the month of December, January can easily be lost in the fray. But, while many brands may slow their advertising efforts, it turns out that January is actually a good time to continue marketing aggressively. As described by agency Madison Taylor, many consumers in January are still in a buying mode. Whether they are looking for new year deals, are interested in products that support their vision for the new year, or just have an unforeseen need arise, individuals are still making significant purchases in the early part of the year. Additionally, as opposed to December when ad space can be quite cluttered, there is less competition in January. In fact, according to a 2025 analysis by Guideline, a media data company, ad spend was 29% lower in January 2025 than it was in the previous December. Further illustrating this point, an analysis of Meta properties by Boston performance marketing agency Gupta Media showed that in 2024, the last full year of data available, CPM (cost per 1,000 impressions) and CPC (cost per click) were about 25 and 10 percent lower respectively during the month than the yearly average on the platforms.
This response from advertisers does not align with consumer purchasing data. Spending in January, according to a February 2025 PBS article, is generally consistent with other months of the year. (In fact, the article highlighted the unusualness of the month of January 2025, in which consumers cut spending by 0.2%, described as the largest reduction in four years.) So while perceived demand may have decreased following the holiday season, actual demand has remained largely constant. This data shows that organizations that significantly reduce their total ad spend in January are missing out on a significant opportunity.
A further consideration for brands is that many potential customers are not going to see an ad and immediately go out to purchase that product; marketing is an investment in the future. When the need arises for that customer at some point, any advertising they have consumed has the potential to influence purchasing decisions. So, by decreasing marketing in January, companies are actually being extremely shortsighted in that they are not taking into account the buying potential of their target audience. Instead, as noted above, they are taking a stereotypical view of consumers in the present and applying it to advertising opportunities that will likely fundamentally impact the future and potentially the long-term prospects of their organization. To further illustrate this point, we wrote in 2025 about the importance of not dialing back advertising in a recession; advertisers essentially treat January like a month-long recession. In that article, we provided the example of two competing cereal brands at the outset of the Great Depression, one of which increased spending and one of which decreased it. As readers may remember, the brand that increased spending, Kellogg’s, increased revenues by 30% over a period of several years and became the category leader while the other brand, Post’s, fell to a distant second.
With this in mind, there are clearly tangible drawbacks to reigning in marketing budgets at any time; while it is certainly more pronounced in the time of a recession, it should still be a concern for advertisers. While it may seem counterintuitive to pursue additional spending directly following the holiday season, the associated ROI with such spending warrants more attention. In doing so, marketers can open up additional possibilities and improve their brand’s standing in comparison to their competitors.
Marketing in January – A Guide to Opportunity
