Dive Brief:
- Value for money is the most important factor for consumers when it comes to holiday purchases, followed by product quality and discounts, according to data from Mastercard’s Shopper Snapshot shared with Marketing Dive.
- With the focus placed squarely on value, sales and discounts have become a driving force when it comes to consumer purchases. Among survey respondents, 73% routinely purchase a wish list item once it goes on sale, 71% respond to personalized discount codes and 63% act when limited-time sales are ending.
- Consumers are using artificial intelligence as a digital helping hand this holiday season. Approximately half of Gen Z and millennials would let AI handle gift buying if it meant avoiding holiday stress. Additionally, 42% of consumers are already using the technology to assist with buying gifts
Dive Insight:
With consumers starting their holiday shopping earlier and earlier, marketers have been focused on timing campaigns to capture buyer attention. Brands have taken a variety of approaches. For example, Home Depot tugged at heartstrings with ads showcasing Christmas tree farmers while Walmart tapped into seasonal nostalgia with ads featuring the Grinch. However, data from Mastercard found above all else, consumers are looking for value this holiday season.
Mastercard’s “Shopper Snapshot 2025: Holiday Shopping Insights” report is based on responses from 4,007 consumers from the U.S., Canada, the U.K and the UAE. It was conducted in partnership with The Harris Poll.
Consumers are looking to cash in on rewards this season, with 79% of respondents planning on using loyalty points and rewards to complete purchases. The hunt for value could provide a way to collect first party data, with 66% of respondents saying they regularly provide their contact information in order to receive a discount during the holidays, per the report.
Social commerce is becoming a more trusted outlet for consumers, with 57% of Gen Z and 61% of millennials saying their trust in the channel has increased. Additionally, 53% of Gen Z consumers and 47% of millennials report trusting the opinion of influencers over their own friends.
While online and social shopping is growing in popularity, consumers are still flocking to physical stores, with 90% of consumers most often frequenting physical stores for holiday shopping. Gen Z is actually the most likely to shop physical stores, at a rate of 91%. Physical stores offer Gen Z consumers with inspiration, with 81% reporting getting gift ideas from displays.
E-commerce sites are the second most used source for holiday shopping for 82% of consumers. This jumps to 87% when looking at Gen Z and 86% when looking at millennials. Approximately two-thirds of Gen Z and millennial consumers plan to increase or maintain their purchasing of second-hand gifts this season.
Despite economic concerns, consumers are excited to shop. The top emotions consumers are feeling when it comes to holiday shopping are excitement, at 45%, and connection, at 28%. Over half, 58%, admit to treating themselves to gifts while shopping for others.
