For most ecommerce brands, the moment Christmas week ends, budgets get slashed, campaigns get paused, and everyone “waits for January to pick up”.

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But this is one of the biggest missed opportunities in paid media.

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As an ecommerce marketing agency working across fashion, home & garden, beauty, and lifestyle brands, we see the same trend every year:
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CPMs drop sharply after Christmas and brands willing to spend in this window win disproportionately.

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Why CPMs Drop After Christmas

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1. Advertiser Demand Falls Overnight

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From December 26th, paid media becomes a ghost town.

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Retail peaks early in the month → budgets get exhausted → finance teams push for cost cuts → advertisers either pause or drastically reduce spend.

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Platforms like Meta and Google run on auction-based systems, so the moment demand drops:

Fewer advertisers bidding = cheaper impressions = lower CPMs.

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In many accounts, we see CPMs drop 30–60% between 26 Dec – 10 Jan.

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2. Consumers Are Still Scrolling. But Ads Are Not

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Usage does not drop after Christmas. In fact, it rises.

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People are:

• Off work
• On their phones more
• Spending gift money
• Browsing for Boxing Day and New Year deals

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So you end up with higher supply (more available impressions) and lower demand (fewer advertisers competing).

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This imbalance drives CPMs down even further.

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3. January-Intent Is Real & Underestimated

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Shoppers don’t stop wanting things, they simply shift intent.

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Common post-Christmas buying categories include:

• Upgrades & essentials
• Fitness, wellness, and self-improvement
• Home refresh items
• Wardrobe resets
• “Treat yourself” purchases with gift cards

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Brands that stay active capture this early-year demand before CPA rises again in mid-January.

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Why Ecommerce Brands Should Spend More

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1. It’s the Cheapest Traffic You’ll Buy All Year

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Lower CPMs + stable CTR = much cheaper CPCs.

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And cheaper CPCs means:

• More traffic
• More add-to-carts
• Larger retargeting pools
• Lower blended acquisition cost

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Even if conversion rates fluctuate, the economics of the funnel become significantly more efficient.

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2. Competition Is Weak. A Perfect Time to Gain Market Share

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When competitors go dark, your brand gains:

• Superior reach
• More impression share
• Higher visibility on key placements
• Cheaper remarketing access

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This matters especially for categories where consumers compare brands (fashion, furniture, beauty).

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A strong presence in this window positions you for Q1 growth.

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3. Remarketing Pools Are Fresh & High-Intent

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December drives huge volumes of browsing even from shoppers who didn’t convert before Christmas.

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Those users:

• Still want the product
• Are waiting for the right price
• Have gift money
• Are actively checking sales

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Running retargeting through early January converts this warm audience for a fraction of the usual cost.

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4. Boxing Day & January Sales Still Convert Exceptionally Well

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Even with rising privacy constraints, we consistently see one thing across ecommerce accounts:

Post-Christmas sale traffic converts exceptionally well especially when paired with simple, strong offers.

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Examples:

• Price drops
• Spend-X-get-Y promotions
• Extra % for email/SMS subscribers
• “Final sale” messaging

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Brands that maintain ad pressure perform significantly better throughout Q1.

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How Ecommerce Brands Should Spend (Without Wasting Budget)

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1. Keep Meta & Google Budgets On — Don’t Pause Completely

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Pausing resets learning and kills cheap momentum.

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Recommended:

• Keep evergreen campaigns running
• Maintain at least 60–70% of December budgets
• Increase spend gradually if CPMs remain low

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2. Prioritise High-Volume Audiences

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Post-Christmas is about scale, not micro-segmentation.

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Best performers:

• Broad Meta audiences
• High-intent search (Google)
• Smart Shopping/PMax for product discovery
• Recent website visitors
• High-value customer lists

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3. Simplify Creative & Offers

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This is not the time for complicated ads.

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Stick to:

• Clean product-first ads
• Strong sale messaging
• High-contrast creatives
• Simple offers customers immediately understand

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This improves CTR and ensures you take full advantage of cheaper CPMs.

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4. Warm Your Funnel for Q1

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This is one of the best times of the year to build cost-efficient remarketing pools.

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Run:

• Video view campaigns
• DPA &Carousel Ads
• Shopping campaigns
• Low-CPM awareness formats

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You’re essentially buying cheap attention that will convert late January–February.

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Final Thoughts

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Most ecommerce brands treat post-Christmas as a dead period, but the data says the opposite.
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CPMs drop, traffic surges, and the brands who stay live experience some of their cheapest and most profitable acquisition all year.

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If you want a strong Q1, this is the moment to invest, not pull back.

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