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Your 2026 holiday marketing strategy: Win on who you reach

2026 is shaping up to be the first truly AI-powered holiday shopping season. With 76% of shoppers planning to use AI, explore the trends shaping the season and discover how to reach the shoppers most likely to spend, convert and drive growth.

Trends to help you win holiday 2026

From AI-powered discovery to earlier shopping and growing demand for value, these six trends reveal how shoppers are preparing for holiday 2026.

01

AI is reshaping how people shop

This holiday season, AI is becoming part of the shopping journey. Nearly three in four consumers plan to use AI tools to brainstorm gift ideas, research products, compare options and uncover the best deals. As shopping becomes more conversational, brands need new ways to influence discovery and consideration

02

Shoppers’ budgets aren’t one-size-fits-all

Across the US and UK, 2 out of 3 shoppers are expecting their holiday purchases to be impacted by increasing cost of living. Meanwhile, instead of pulling back this holiday, a quarter of shoppers are planning to scale up their holiday spend. In Australia the mood is more cautious: 76% cite rising cost of living, 73% expect to trim their holiday budget, and just 17% plan to spend more.

03

Holiday shopping starts earlier and ends later

Holiday shopping doesn’t just happen during peak season. This year, 63% of U.S. shoppers and 53% of UK shoppers plan to kick off their shopping on or before Prime Day and most have their product research done well before Halloween. 38% of U.S. travelers planning to buy gifts upon reaching their destination, pushing purchases closer to the holidays

04

Deals are a very big deal

Deals remain a powerful driver of holiday spending. In the US, 87% of consumers plan purchases around seasonal sales, researching and comparing before they buy, while 2 in 3 shoppers turn to marketplaces like Temu and Shein.

05

More gifts in more places

Gift lists are getting longer this year, as a higher share of consumers shop for friends and acquaintances. Gifting lists are growing and travel is back in a big way. Friend-based gifting circles have bounced back to a notable 67% share in the U.S

06

Brand trust meets discovery

There are opportunities for trusted brands as well as challengers this year. While 53% of U.S. and 62% of UK shoppers look for trusted brands, the majority stay open to discovering new brands during sales events.

You’ve got the trends. Now get more out of them

We’ve matched each trend to real-world strategies that you can build winning campaigns with

Explore 2026 holiday shopping insights across global retail markets

Discover how shoppers in the US, UK, France, Germany, Canada, Australia, Brazil and Japan are preparing for Holiday 2026. From AI-assisted discovery and early deal hunting to mobile, omnichannel and local shopping preferences, each market reveals unique behaviours. Use these regional insights to shape seasonal campaigns that meet demand earlier and convert more efficiently.

People gathered beside a decorated holiday tree, looking at ornaments and festive lights.

U.S. shoppers start earlier and compare for value

U.S. holiday sales crossed 1T,with onlinespend reaching about 258B. Most conversions happen outside Cyber Five, and shoppers are using AI, flexible payments and promotions to stretch budgets. Go live early with PMax, promotion extensions and audience-led creative to capture demand across the season.

View US insights (opens new window)
Group celebrating a holiday gathering around a dining table beside a decorated tree and seasonal decorations.

UK holiday demand is mobile-led and AI-influenced

UK online holiday spend reached £26.9B, with mobile driving 62% of online revenue. BFCM (Black Friday and Cyber Monday) remains a major planning window, but AI-sourced traffic and Gen AI recommendations are changing discovery. Prioritize mobile-first Shopping, Audience Ads and AI-ready search coverage.

View UK insights (opens new window)
People walking through a snowy forest with a freshly cut evergreen tree surrounded by snow-covered trees.

Canadians wait for deals and reward local brands

Canadian holiday spend is set to rise about 3%, but shoppers remain value-led: 85% wait for sales, Black Friday is the key shopping day and many prefer Canadian-owned businesses. Use promotions, local inventory signals and early PMax coverage to capture deal intent.

View Canada insights (opens new window)
Multi-generational holiday gathering around a dining table with festive food, candles and seasonal décor.

German shoppers buy earlier across Black Friday

Germany’s Christmas retail continues to grow as Black Friday and Cyber Monday stretch into a multi-week season opener. Price leads decisions, AI-assisted discovery is rising and sustainability matters for gift choice. Keep Shopping and Search campaigns sustained, not single-day.

View Germany insights (opens new window)
Child and adult gathered around a table with candles and seasonal decorations in a festively decorated home.

French shoppers seek quality in a longer Cyber season

France’s holiday demand is moving earlier into a multi-week Cyber season as budget-conscious shoppers focus on quality, value and trusted discovery. Cyber Week orders and sales rose year over year, while fashion and beauty discovery is shaped by video and creators. Run always-on full-funnel coverage.

View France insights (opens new window)
Group enjoying a seasonal outdoor gathering with holiday paper crowns, shared food and festive table decorations.

Australian shoppers blend AI discovery with value

Australian holiday spending is rebounding as cost-of-living pressure eases, while November mega-sales, AI chat tools and omnichannel journeys shape discovery. Shoppers remain price-conscious and expect payment flexibility, so lead with deals, rich product feeds and remarketing.

View Australia insights (opens new window)
People adding written wishes to a decorative display made of folded paper strips in a public outdoor setting.

Japan’s premium gifting meets omnichannel convenience

Japan’s $176.8B B2C e-commerce market is growing as gift cards, premium gift sets and omnichannel experiences shape year-end shopping. Convenience matters too: shipping costs, points, cashless payment and product range influence choice. Showcase curated gifts and bridge online discovery to stores.

View Japan insights (opens new window)
Group gathered outdoors holding sparklers during a seasonal celebration.

Brazil’s holiday demand starts before Black Friday Week

Brazilian e-commerce surged in November 2025, while Double Dates pull deal intent forward months before Black Friday week. AI discovery, premium audiences and local payment habits make early activation critical. Keep budgets live from October with PMax, Shopping and deal-led creative.

View Brazil insights (opens new window)
Microsoft Advertising webinar graphic: “Winning holiday moments: Practical strategies for seasonal success.”

Reach the right shoppers this holiday

Use our holiday readiness checklist to prepare campaigns, audiences, feeds, measurement, and AI-powered solutions for the moments that matter most. From planning through peak season and beyond, stay ready to drive results.

Download the checklist (opens new window)
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Watch our holiday trends and insights webinar series

Explore the trends shaping holiday 2026 with expert insights, market forecasts, and guidance to help inform your strategy.

Learn more (opens new window)
Two people standing outdoors and viewing a smartphone together. Warm string lights and an urban setting are visible.

Practical strategies for seasonal success webinar series

Turn holiday trends into action with practical advertising tactics, campaign recommendations, and expert guidance.

Learn more (opens new window)

Contact an expert

Talk with a specialist for a personalized overview of how our tools can help your brand this holiday season.

Book a free expert meeting

Frequently asked questions on 2026 holiday marketing strategy

Advertisers should initiate technical testing in July and launch native brand discovery campaigns by September. Multi-year conversion performance data confirms that 65% of all final November sales conversions stem directly from initial ad interactions recorded in October.

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