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%, making it critical for brands to be intentional about how they target the cohort."

Broad uncertainty surrounds the 2025 holidays, with 57% of consumers expecting the economy to weaken over the next six months and the most negative outlook since 1997. Consumers are forecast to pull back 10% compared to 2024, while Gen Z is expected to reduce spending by 34%. Marketers are relying on themes of connection and timelessness to communicate value instead of flashier narratives. Social media virality, influencers and in-person experiences remain popular avenues for reaching Gen Z. Gen Z also shows higher comfort with retail media and artificial intelligence as marketing channels.

Read at Retail Dive