Holiday Season Ad Spend in Apparel to Grow 2%

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Holiday Season Ad Spend in Apparel to Grow 2%

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Arthur Zaczkiewicz

Arthur Zaczkiewicz

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Holiday Season Ad Spend in Apparel to Grow 2%

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New research from Sensor Tower , a market intelligence firm, reveals insights into advertising spending for the 2026 holiday shopping season.

Kara Lee, senior insights analyst at the market intelligence firm, tracked 45-plus subcategories to forecast expected ad spend this year versus 2025. In her report, Lee identified apparel as the largest subcategory, but it is forecast to see the lowest year-over-year ad spend growth with 2 percent.

The largest gains will be pet supplies with a 64 percent increase, which is followed by wearable technology at 52 percent. Computers and consumer electronics are pegged to see an ad growth of 48 percent, while luggage and travel accessories are expected to grow 46 percent.

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“The holiday season is critical for companies, particularly toy and seasonal-goods retailers that can see upwards of 30 percent of total sales stem from seasonal gifting,” Lee said in the report, which was released Tuesday. Lee said that the firm’s advertising data “leverages spend from the previous three quarters (4Q25-2Q26) to provide a window into the 4Q26 holiday season, as [the first half of 2026] experienced stronger [year-over-year] gains in spend and may suggest that advertisers will remain bullish to capture a larger share of consumer spend.”

So, the race is on. But where will the money go?

Lee said Facebook is the top advertising channel across the entire shopping category by spend, “accounting for the greatest percentage of spend at [about] 65 percent for the 45-plus subcategories, including apparel, hobbies & interest shopping, grocery stores and more.” The other popular channels include TV, Instagram and mobile ad networks.

The report noted that large-scale advertisers, those who spent between $1 million and $10 million in the first half of the year, are expected to increase ad spend by 9 percent, year over year, in the fourth quarter. This compares to a 6 percent increase in the same period last year. Enterprise advertisers, those that spent more than $10 million in the first half, are expected to increase ad spend by 8 percent in the fourth quarter.

For retailers and apparel brands, the forecasted 2 percent year-over-year growth in ad spend signals a need for strategic recalibration. While apparel remains the largest sub-category by spend, its minimal growth suggests market saturation or shifting consumer priorities.

Apparel brands may need to focus on differentiation, such as personalized marketing or sustainability messaging, to capture attention amid stagnant investment. The dominance of Facebook as the primary ad channel also underscores the importance of leveraging social media platforms to engage with consumers, especially as competitors in high-growth categories like pet supplies and wearable technology ramp up their digital presence.

The data also highlights a broader trend: advertisers are doubling down on channels and categories with proven returns.

With large-scale and enterprise advertisers increasing their fourth-quarter budgets, apparel brands risk falling behind if they don’t adapt. The holiday season’s critical role in annual sales means that even modest ad spend growth could translate to significant revenue losses if not paired with innovative, targeted campaigns.

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