How Gen Z is reshaping holiday marketing - and what brands can do about it

"The holiday season is in full swing, but what is considered by many to be the most wonderful time of the year has become a complex maze for marketers. Brands this year are tasked not only with breaking through to cash-strapped consumers, but also understanding an advertising playbook being rewritten by Gen Z, a cohort that remains valuable but is simultaneously leading a seasonal spending decline."

"Broad uncertainty surrounds the 2025 holidays, with 57% of consumers expecting the economy to weaken over the next six months, according to Deloitte's annual retail survey. That's the most negative outlook since the consultancy began tracking economic sentiment in 1997. Spending behavior reflects the dour mood, with consumers forecast to pull back 10% compared to 2024. Gen Z is expected to have an even stronger spending retreat at 34%."

"As marketers attempt to strike a chord with shoppers, many are relying on themes of connection and timelessness to communicate value in place of flashier narratives. Meanwhile, bets on social media virality, influencers and in-person experiences remain popular avenues for reaching Gen Zers, who at the same time are expressing higher levels of comfort with retail media and artificial intelligence."

Broad economic pessimism is affecting holiday spending, with 57% of consumers expecting the economy to weaken over the next six months — the most negative outlook since 1997. Consumers are forecast to reduce holiday spending by about 10% compared with 2024, while Gen Z's spending is projected to fall roughly 34%. Shoppers plan to trim seasonal extras to preserve traditions, and 70% are actively searching for value. Marketers are emphasizing themes of connection and timelessness to convey value rather than flashy narratives. Brands are also investing in social media virality, influencers, in-person experiences, retail media and artificial intelligence to reach Gen Z.

Read at Marketing Dive