For many fashion brands, January has long been treated as a post-peak lull, a time to wind down after the Christmas rush, clear out leftover stock, and prepare for spring.

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But Q1 is no longer the quiet period it used to be. For brands focused on profitability over volume, it’s a strategic opportunity to fine-tune their fashion paid media strategy and start the year with healthy margins and repeatable revenue.

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The shift is clear: smarter paid media, not just more of it. By refining targeting, creative, data use, and budgeting approaches, fashion brands can turn Q1 into a profit engine rather than a clearance cycle.

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Move Beyond ROAS: Focus on Contribution Margin

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Return on ad spend (ROAS) is a familiar metric, but it doesn’t tell the whole story.

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A campaign that drives £10,000 in revenue on £2,000 spend looks great on paper, but what if 80% of those sales were on discounted items with thin margins?

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In Q1, profit-focused brands are moving beyond ROAS and using contribution margin-based metrics to measure paid media success. This means tracking:

• Profit per SKU after media cost
• Net margin by channel
• Average order profitability (AOP)

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By layering contribution margin into your paid media reporting, you can shift spend toward products and channels that deliver real profitability, not just surface-level performance.

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Scale Full-Price Sales With Creative and Messaging Optimisation

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Fashion brands often assume post-holiday shoppers want deep discounts, but in January, many consumers are looking to refresh their wardrobes, not hunt for bargains.

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That creates an opening for full-price sales, especially with the right creative.

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Winning tactics include:

• “New Year, New Style” messaging that emphasises self-investment, not savings
• Highlighting in-stock, trending products without discount badges
• Pairing products with style tips or wardrobe refresh suggestions to inspire purchase

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Q1 is also the time to update festive creative with fresh aesthetics. Clean visuals, minimalism, and new-season colours tend to perform well. The goal is to position your full-price offer as a new beginning, not a leftover from December.

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Use Q1 to Drive Repeat Purchases, Not Just New Acquisition

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New customer acquisition costs are rising. In January, many fashion brands are sitting on a goldmine: December buyers who just made their first purchase.

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Rather than immediately shifting to prospecting, Q1 is the perfect time to double down on LTV.

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Here’s how:

• Create custom audiences of recent buyers and serve them cross-sell or “complete the look” ads
• Launch email-to-paid campaigns that mirror your post-purchase flows
• Use dynamic product ads (DPA) to show previously viewed items, new arrivals, or bundle options

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By using Q1 to re-engage customers you already paid to acquire, your brand improves paid media efficiency and builds loyalty, a much smarter strategy than starting from scratch.

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Invest in Owned Data: Smarter Segmentation for Better Efficiency

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As third-party data continues to fade, your first-party data becomes the most valuable asset in your paid media strategy.

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In Q1, use this data to:

• Build lookalike audiences based on your highest-margin customers
• Segment buyers by purchase value, category, or recency
• Power email capture campaigns that fuel future paid efficiency

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Fashion brands that combine email, SMS, and paid media into one connected system are already seeing improved performance across all channels.

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It's not just about reaching more people, it's about reaching the right people, profitably.

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Align Paid Media With Merchandising and Inventory Strategy

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Many paid media campaigns fail because they’re disconnected from product and inventory planning.

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In Q1, aligning your media strategy with merchandising priorities is essential for profit-driven growth.

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Ask yourself:

• What high-margin SKUs are currently overstocked?
• Which product categories need a push in January?
• Are there bundling opportunities that increase AOV?

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Use paid media to direct traffic to strategic product collections rather than your homepage. Promote bundles, bestsellers, or capsule collections that make both style and financial sense.

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The tighter the link between your media and your merchandising, the stronger your returns.

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Final Thoughts: Q1 as a Profit Engine, Not a Quiet Period

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The smartest fashion brands are rethinking their Q1 strategy, not as a reactive time for clearance sales, but as a proactive season for strategic, margin-driven growth.

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By focusing on:

• Contribution margin over ROAS
• Creative that sells full-price
• LTV rather than pure acquisition
• Smarter segmentation
• Merchandising-media alignment

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...your brand can turn Q1 into a quarter of sustainable, profitable performance.

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Profitability isn’t about spending more. It’s about spending smarter. And Q1 is the perfect time to prove it.

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