Home Content Studio How Different Generations Will Shop This Holiday Season

How Different Generations Will Shop This Holiday Season

SHARE:

The holiday season is here, and understanding how different generations plan to shop can help you tailor your messaging, media planning and creative based on the generation you’re targeting.

Our recent survey of 1,000 US consumers revealed their spending habits, shopping timelines and purchasing preferences by generation. Here are the five biggest trends that the findings revealed and how they can enable you to address the diverse needs of this year’s holiday shoppers.

  1. Spending will vary

One of the most significant trends this year is the variation in how much each generation plans to spend. Over one-third of Gen Z and millennial consumers plan to increase their holiday budgets, while Gen X and boomers are more likely to maintain their spending at last year’s levels:

  • 36% of Gen Z and 76% of millennials plan to spend more this year vs. 26% of Gen X and 24% of boomers
  • 45% of Gen X and 52% of boomers plan to spend the same amount or more

What this means for marketers

To match each generation’s mindset, marketers should tailor their messaging. For Gen Z and millennials, emphasize value and unique offerings that justify increased spending. For Gen X and boomers, focus on trust and reliability, reinforcing their confidence in your brand.

Marketers should consider using audience segments that target high- or moderate-spending consumers.

Following presidential elections, US holiday retail sales have historically experienced significant growth, with a 4.1% year-over-year increase in 2016 and an 8.3% rise in 2020. This pattern suggests holiday spending could climb after the 2024 election, regardless of the outcome. Marketers must be proactive: Identify and activate key political or holiday audiences across major ad platforms to ensure your messages break through with consumers.

  1. Shifts in seasonal shopping

The holiday shopping season is beginning earlier than ever, with a notable percentage of consumers already kicking off their holiday buying:

  • 29% of Gen Z, 41% of millennials and 38% of Gen X plan to start holiday shopping before October
  • 42% of boomers prefer to wait until November or December

Top motivators for early shopping include:

  1. Discounts and early sales
  2. Avoiding holiday shopping crowds
  3. Preventing shipping delays

What this means for marketers

Be present at the right moments to capture early shoppers. Launching campaigns that target early birds, particularly around late summer and early fall, can give you a head start.

Marketers should think beyond just Black Friday and Cyber Monday, considering that significant portions of the population are shopping earlier to take advantage of discounts, avoid crowds and shipping delays.

  1. Top categories on shoppers’ lists

Generational differences also extend to the types of gifts consumers want to buy. Gift cards are the most popular choice among Gen X and boomers, while Gen Z and millennials gravitate toward specific gift categories like clothing, health and beauty items and tickets:

  • 69% of boomers and Gen X will buy gift cards
  • 72% of Gen Z will buy clothing
  • 45% of millennials will buy health and beauty items
  • 25% of millennials will buy tickets, and 22% will buy experiences

What this means for marketers

Highlighting gift cards may resonate more with older generations, whereas promoting trendy apparel, tech gadgets and experiences will appeal to younger shoppers.

  1. Preferred channels for gift inspiration

Generational preferences also influence where consumers look for gift inspiration. Gen Z uses social media, while millennials prefer video reviews and product demos on platforms like YouTube. Boomers and Gen X prefer in-store visits to test gifts in person:

  • 29% of Gen Z and 26% of millennials will look for gift ideas on social media
  • 44% of millennials will rely on video reviews and product demos
  • 49% of Gen X and boomers plan to visit physical stores to evaluate products in person

What this means for marketers

For Gen Z, focus on social media campaigns and influencer partnerships. Millennials respond well to video content and detailed reviews. For older generations, ensure a seamless in-store experience that makes it easy to demo or try out products.

  1. Where consumers will shop

Consumers expect to blend online and in-store shopping more than ever. Younger generations are more inclined to shop online using mobile devices, while older generations prefer using a desktop or laptop for online shopping:

  • 47% of consumers said they will shop in store
  • 36% of Gen Z, 31% of millennials and 29% of Gen X will shop online using a mobile device, compared to 17% of boomers
  • 33% of Boomers prefer online shopping via desktop or laptop

What this means for marketers

Digital and physical experiences must work together. Retailers should use a multi-channel strategy tailored to their audience and product. For example, design an engaging in-store experience to attract more visits. And ensure that your digital presence is optimized for mobile, which is critical to capturing younger shoppers. And maintain a user-friendly desktop experience for older generations.

Additionally, integrating online and offline data can help you accurately measure your cross-channel marketing efforts.

Build strong consumer connections this holiday season

This holiday season is an opportunity to cultivate meaningful connections with consumers across generations. Understanding each age group’s unique preferences and behaviors allows marketers to refine their messaging, target the right audience      and reach them through their preferred channels.

Aligning your strategies with spending habits, timing promotions to match shopping patterns and selecting the appropriate platforms for gift inspiration will help you build stronger relationships and achieve significant returns this season.

Survey source

Online survey conducted in June, 2024 among n=1,000 U.S. adults 18+. Sample balanced to look like the general population on key demographics (age, gender, household income, ethnicity and region).

n = 204 Gen Z, n = 234 Millennials, n = 270 Gen X, n = 272 Baby Boomers.

Tagged in:

Must Read

Comic: Domino Effect

Does The New Federal Data Privacy Bill Have A Snowball’s Chance Of Passing?

Congress is taking another swing at a federal privacy framework. Wonder what the odds are on Kalshi.

ChatGPT Ads Have Begun Showing Up For Logged-Out Users

Good news for advertisers, many of whom have found it difficult to meet minimum spend budgets on ChatGPT: Logged-out users can now see ads.

Amazon Faces An Easy Boycott But An Existential Question

The Amazon advertising boycott last week wasn’t really about Amazon’s ad platform as much as it was a dispute over evolving seller economics, which raises a fundamental question: Can you even build a brand on Amazon anymore?

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Unity And Index Exchange Unite Behind Gaming Data In Non-Gaming Channels

For the first time, Unity’s gaming audiences will be available for ad targeting outside the Unity platform, with Index Exchange using Unity’s data to curate web and CTV inventory.

Brand-Trained Agents Can Give Marketers A Fuller View Of Their Customers

Agentic commerce company Envive builds on-site agents for brands like footwear company Clove, painting a clearer picture of what their customers are looking for.

Don’t Worry About Netflix – It’s Doing Fine Without Warner Bros. Discovery

Paramount might have outlasted and outbid Netflix in the competition to acquire Warner Bros. Discovery, but Netflix is not overly fussed about the loss.