Should You Run Ads During the Christmas Period?

Christmas Day: Snow if you’re lucky, family time, and… shopping? Without a doubt. While the turkey roasts and Die Hard (yes, it is a Christmas movie) plays in the background, millions of people are browsing online for some retail therapy. 

The Christmas period presents a tremendous opportunity for businesses, whether it’s last-minute deal hunters, gift card redeemers, or even B2B buyers planning for the new year. But if you’re considering pausing your ads, think again – doing so could have long-term consequences for your business. Here’s why running paid ads over Christmas can be a huge opportunity.

What Happens If You Pause Your Ads?

Pausing your ad campaigns may seem like a harmless way to cut costs, but the impact can be surprisingly detrimental:

Loss of Google Ranking
Google prioritises active campaigns and rewards advertisers with higher Quality Scores. When you pause your campaigns, you risk losing your position. When you restart them, it may require more budget to reclaim visibility. Research shows that campaigns paused over the holiday period can take seven to 10 days to return to optimal performance. And, a 2021 study by WordStream found that CPCs in January were 20% higher for industries that paused their ads during the December holidays.

Higher Post-Holiday Costs
Pausing ads during Christmas leaves you vulnerable to increased competition. As many businesses resume their advertising after the holidays, competition for top keywords spikes. This can raise CPCs during January and February compared to the lower-cost months of December.

Missed Traffic and Conversions
By pausing your ads, you’re missing out on a significant opportunity. The holiday season brings 12% more traffic to e-commerce sites compared to non-holiday periods. On Christmas Day alone, US consumers spent over $1 billion online in 2022. Don’t let these high-intent shoppers slip through your fingers. For many brands, December is a critical period for both impulse and planned purchases.

Why Keeping Your Ads Live Is a Smart Move

Running ads during Christmas isn’t just about making quick sales – it’s about ensuring your brand stays visible and competitive. Here’s why keeping your ads running is a smart move.

1. Lower Competition = Lower Costs

During the holiday period, many businesses reduce their advertising budgets, which creates a key opportunity for others to capitalise on less competition. In paid search, less competition, means less cost per clicks. 

2. Attract Last-Minute Shoppers

It’s not just early birds that are shopping during the holidays. 52% of consumers admit to buying gifts in the week leading up to Christmas. Google saw a 300% spike in searches for “last-minute gift ideas” during the final week before Christmas. Running ads ensures your brand remains visible to these high-intent buyers making quick decisions.

3. Take Advantage of Increased Spending

Holiday shoppers spend significantly. Brits are expected to spend an average of £596 each on Christmas gifts in 2024. In the US alone, an average of $998 spent on gifts, food, and decorations. ​With 57% of these purchases involving online research or e-commerce, running ads during this period allows you to capture a significant portion of this market.

4. Leverage Boxing Day and New Year’s Sales

Boxing Day is a major shopping event, generating over $1 billion in sales in Australia in 2022. Running ads during this period allows you to capture post-Christmas sales from consumers who are ready to take advantage of discounts or finalise purchases.

5. Benefit from New Year’s Trends

The post-Christmas period offers an excellent opportunity for businesses in the fitness, health, and self-improvement sectors. Search volume for fitness-related products increases by 22% during the first week of January. Ads running over the Christmas period help position your company perfectly to capture the “New Year, New Me” audience.

6. Engage B2B Buyers

The holiday period isn’t just for B2C companies. Many B2B buyers use the quiet time to plan for the new year, finalise budgets, and research vendors. Keeping ads live encourages your business to be discovered or stay top-of-mind for these decision-makers.

Actionable Strategies for your ads

With the right strategies, you can ensure your ads are live and performing at their best. To maximise your holiday ad campaigns, here are a few actionable strategies: 

1. Regularly Review and Adjust Bids
   
   CPCs may fluctuate during the holidays, so monitor your ad performance frequently and adjust bids to stay competitive while maintaining ROI.
   
   
2. Prioritise High-Value Products
   
   Focus on your best-selling or premium products. During the holidays, top-ranking products receive 3x more engagement than lower-ranking alternatives.
   
   
3. Research Competitors
   
   Monitor competitor ads to identify gaps or opportunities. Tools like SEMRush or SpyFu can help you analyse keyword trends and competition levels.
   
   
4. Leverage Automation
   
   Utilise Smart Bidding or Performance Max campaigns to automate bidding and audience targeting, ensuring consistent performance even when your team is out of the office.
   
   
5. Budget Wisely
   
   Allocate 20% – 25% of your annual ad spend to the holiday season, as this is when consumer engagement and conversion are at their highest.

Wrap-Up

The Christmas period is vital for B2C and B2B businesses, offering opportunities for growth and visibility. While pausing ads may seem like a cost-saving measure, the long-term drawbacks – such as losing ad ranking, facing higher CPCs, and missing valuable opportunities – far outweigh any immediate savings. By keeping your ads live throughout the holiday season, you’re not just avoiding setbacks, you’re positioning your business for both immediate wins and long-term dominance in the market.

Looking for guidance with your ad campaigns?

Take a look at our paid services page or feel free to get in touch.