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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.<\/p>\n
Broad uncertainty surrounds the 2025 holidays, with 57% of consumers expecting the economy to weaken over the next six months, according to Deloitte\u2019s annual retail survey.\u00a0That\u2019s 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.<\/p>\n
\u201cGen Z is feeling the economic pressures at an even higher rate,\u201d said Lupine Skelly, a retail research leader at Deloitte. \u201cFor retailers, we know that Gen Z is on the fence about a lot of things, so can you get some more marketing and these social media campaigns going to tempt them [and] talk about the value you\u2019re offering.\u201d<\/p>\n
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.<\/p>\n
Finding value in emotion<\/h3>\n
Though the majority of consumers expect prices to be higher this season, optimism remains. Shoppers surveyed by Deloitte plan to trim seasonal extras, like a new sweater to wear while hosting, so they can preserve holiday traditions, and 70% are searching for value. To meet the moment, marketers are replacing tropes of glitz and glam with a dose of realness.<\/p>\n
\u201cWe expect consumers to be a little more budget-conscious, a little more discerning with what they\u2019re spending, and you see that in the creative work,\u201d said Hannah Lewman, a strategy director at Ogilvy. \u201cBrands are responding by emphasizing the value of connection, shared experiences, more attainable human moments, less fantastical, dream holidays.\u201d<\/p>\n
The exec pointed to Gap\u2019s holiday marketing campaign, titled \u201cGive Your Gift,\u201d which centers on a 90-second ad featuring an emotional cover of the Miley Cyrus song \u201cThe Climb.\u201d The spot, handled by Gap\u2019s internal creative team in partnership with creative agency Invisible Dynamics, is meant to shine a light on the importance of hope, connection and individuality.<\/p>\n
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