Celebrate Smarter: 3 data insights every advertiser needs for holiday success

By the time you’re reading this, holiday ad campaigns will already be in motion. The real question now is: Who’s pulling ahead as shopping ramps up?

Across U.S. and EMEA markets, our latest analysis shows that winners aren't simply spending more. High-performing advertisers are actually using several data-backed patterns...

They’re optimizing faster, leaning into shifts in shopper behaviors, and adjusting creative in real-time to drive results and achieve brand differentiation. They’re using strategies that unlock the full potential of the Microsoft Advertising ecosystem, so one search can open multiple doors for consumers to find what they’re looking for. And advertisers are doing it all with AI tools that empower marketers to work smarter, without giving up control or visibility. 

Here’s a closer look at three critical insights to optimize your campaigns for high-performance ROI during the busiest shopping season of the year.

1. Maximize ROAS with this full-funnel formula

Leading holiday advertisers sequence awareness and conversion instead of choosing between them. Our data shows success with Audience ads peaking before Black Friday, while Search and Shopping ads dominate during Black Friday and Cyber Monday.

This formula mirrors how buyers naturally shop, seeking inspiration and discovery early through display and native ads before shifting to the active search for specific products and deals.

Our impression data shows this handoff clearly. Audience ad spend spiked in early November (pre-Black Friday) last year, followed by Search and Shopping spend peaking on Cyber Monday. Advertisers who coordinated this timing saw sustained performance compared to those who committed their whole budget to late November.

To apply this insight, build a coordinated full-funnel strategy with distinct phases:

• Early November: Build awareness and consideration with Microsoft Display and Native ads, as well as Video and CTV ads that tell your story, highlight gift inspiration, and tease “coming soon” deals.

• Mid-to-Late November: Ramp up Search and Shopping campaigns as peak week approaches to capture intent by targeting high-intent keywords, holiday queries, and strategically retarget audiences from earlier awareness campaigns.

2. Use category intelligence to better reach audiences

Understanding category-level performance and cross-shopping behaviors offers a roadmap for advertisers to find holiday lift. Some categories are more seasonal from October to December, and others claim the lion’s share of clicks. 

In the U.S., this includes Clothing and Toys & Games. 

Globally, we see that category performance varies by market. Fashion Apparel, Computer Hardware, and Sportswear lead in the U.K.

Meanwhile, Furniture, Kitchen & Housewares, and Fashion Apparel spike during peak in Germany:

There’s one critical twist across markets: Browsers hop between categories in a single session. If you only focus on narrow product keywords, you miss shoppers who haven’t decided what gift they’re giving yet.

So the key takeaway is to know your hot categories while remaining ready to serve shoppers wherever their holiday browsing takes them.

Use category-level strategies to help reach customers by:

• Deploying Dynamic Search ads to capture unexpected queries across categories

• Using broad match keywords for gift-intent phrases like "best gifts for dad" or "holiday deals"

• Considering Performance Max campaigns to reach shoppers wherever they're searching

3. Stay agile to compete more effectively as demand increases 

We’re seeing signs that the 2025 holiday season will be bigger and more competitive than 2024, but not uniformly across all categories or metrics. Our EMEA forecast reveals a complex landscape that demands strategic agility:

This means categories with the strongest demand will lead to the fiercest bidding wars.

Adaptive strategies come out on top. Internal data from Germany shows that advertisers who boosted Audience ads in September and October maintained conversion growth even as clicks slowed in November because they'd already primed consumers to buy.

At the same time, advertisers who slightly relaxed ROAS targets during peak days to accommodate higher CPCs often captured more volume and recovered ROI through sheer conversion count.

Agile budgeting helps you optimize for opportunities: 

• Build 10-15% of your budget in reserve for unexpected opportunities. Use automated bid scheduling to increase budget on key weekends and set rules or scripts to avoid running out of budget at 2pm on Black Friday.

• Adapt your budget strategy with higher caps on peak days and consider loosening ROAS targets during Black Friday and Cyber Monday. A higher CPC can pay off if conversion intent also elevates.

Optimize in real time for holiday success

The 2025 holiday season will reward advertisers who think strategically, act early, and adapt quickly. The data shows that those who Celebrate smarter by understanding consumer behavior, coordinating tactics across the funnel, and remaining nimble in execution will capture not just more clicks, but more happy customers and a happy bottom line.

Get in touch to learn how Microsoft Advertising’s AI-powered solutions can help you optimize your campaign performance for maximum success this holiday season.

And visit our holiday season resources page for additional insights on how to make this festive season your most successful yet!