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

Retailers continue to utilize social media to stay ahead of the curve and spread awareness for new products, investing dollars to target customers and converting impressions to product purchases and instore visits. The implementation of strong marketing campaigns on social media is making the difference from good to great brands, and the ones that have invested in these tools and implemented in these strategies are the brands having the most success. Brands that create campaigns and grab your attention, especially through emotions, while providing value are the ones that are winning. Gap’s holiday marketing campaign of Miley Cyrus titled “Give Your Gift” is a perfect example of an emotional connection to a brand, one of which is converting an emotional connection to store performance and is the type that will be best suited to deliver results this holiday season. 

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Marketers heading into the 2025 holiday season face a complex landscape shaped by economic anxiety, a steep pullback in consumer spending, and Gen Z’s shifting behaviors. With most shoppers anticipating a weakening economy and prioritizing value, brands are moving away from glossy, fantastic holiday narratives and focusing on emotional authenticity, connection, and affordability. Campaigns from Gap, Walmart, J.C. Penney, and Sam’s Club highlight realness, convenience, and meaningful experiences rather than luxury or excess. At the same time, live sports, creator storefronts, and experiential events remain important channels, especially as Gen Z seeks both deals and in-person shopping experiences, influencing major moments like Black Friday. 

Gen Z’s growing influence on holiday shopping—despite cutting spending by 34%—is pushing brands to deliver personalized, community-driven experiences across digital, social, and physical environments. Retailers like Urban Outfitters and True Religion are investing in wish-list tools, creator collaborations, and experiential events to strengthen connections with younger consumers who value inspiration, community, and discovery. Meanwhile, Gen Z’s rising comfort with retail media and AI is accelerating investment in targeted advertising and AI-powered shopping tools. As brands navigate this shifting landscape, marketers are urged to balance economic sensitivity with emotional resonance, ensuring their holiday messaging enhances the sense of joy and connection consumers seek rather than appearing out of touch. 

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How Gen Z is reshaping holiday marketing — and what brands can do about it | Retail Dive