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

he 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.

“We expect consumers to be a little more budget-conscious, a little more discerning with what they’re spending, and you see that in the creative work,” said Hannah Lewman, a strategy director at Ogilvy. “Brands are responding by emphasizing the value of connection, shared experiences, more attainable human moments, less fantastical, dream holidays.”