Every year, as the holiday season winds down, many YouTube creators face what we call the "Q1 CPM Blues." After the high of Q4, when CPMs often skyrocket due to the surge in holiday advertising, the beginning of the new year brings a stark contrast. Advertisers pull back their budgets after the holidays, leading to a significant drop in CPMs. This drop can be so dramatic that many creators see a sharp decline in their ad revenue, even if their viewership remains steady.
This drop can be disheartening. You're producing the same content, getting the same views, but suddenly, you're making a lot less money. This creates a difficult situation: if you make less content, you risk falling out of favor with the YouTube algorithm, which can lead to even fewer views and lower revenue. But continuing to produce content without the usual financial reward can lead to burnout—hence the "blues."
How Merchandise Can Cure the Blues
This is where merchandise comes in as a powerful solution. Unlike ad revenue, which is subject to the whims of advertisers and seasonal trends, merchandise offers you control over your income. Even though CPMs drop, your audience doesn’t disappear after the holidays. They’re still there, engaged and supportive, which means there’s a significant opportunity to generate revenue through merchandise.
Our Experience with Creators
At Crowdmade, we’ve seen dedicated creators turn this Q1 slump into a period of growth by focusing on their merchandise. Some have even completely replaced their advertising and sponsorship income by diving headfirst into their merch strategy. The key is to have a plan in place before Q1 hits. This means launching new products, running targeted promotions, and reminding your audience that while ads might be paying less, their support through merchandise can make all the difference.
Practical Steps to Leverage Merchandise in Q1
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Plan Your Campaigns Early: Don’t wait until January to start thinking about your merchandise strategy. Begin planning your Q1 campaigns during the holiday season so that you can hit the ground running in the new year.
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Create Limited Edition Products: Consider launching limited edition products that tie into the new year. This creates urgency and can drive sales during a period when ad revenue is lower.
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Engage Your Audience: Use your content to remind your audience that while ad rates might be down, they can still support you directly through your merchandise.
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Monitor and Adapt: Keep an eye on what’s working and be ready to adapt your strategy. If you see that certain products are selling well, double down on those. If a campaign isn’t performing as expected, don’t be afraid to pivot.
By turning your focus to merchandise, you can not only survive the Q1 CPM blues but thrive during this period. Merchandise gives you control over your income and allows you to engage your audience in a way that ad revenue alone simply can’t match.
For any creator looking to beat the blues this year, we're here to help you every step of the way. Reach out to us anytime to discuss your merchandise strategy—we’re excited to see what you’ll achieve!