Key Takeaways:
Discover how AI recommendations influence what holiday shoppers buy.
Learn why social media is now the starting point for gift discovery.
Find out how personalization turns browsers into bigger spenders.
Picture your digital presence as a shop window on Main Street. Social media is the colorful display that makes shoppers pause and look closer. AI is the attentive salesperson inside, suggesting products that fit each customer’s needs. And personalization? That’s the store manager who remembers names, preferences, and makes shoppers feel like VIPs.
In 2025, this “digital storefront” is where most holiday shopping journeys begin. But these aren’t just flashy add-ons to your marketing. They’re the very tools shaping how much customers buy and where they choose to spend. And the numbers show just how powerful that influence really is.
“For the 2025 holiday shopping season, it’s predicted that $260B in online sales and $1.6T in in-store sales will be driven by shoppers discovering products through AI-powered recommendations.”
– Salesforce, Holiday Predictions 2025
Digital Tools Driving Holiday Sales in 2025
Artificial intelligence is already guiding purchase decisions in ways retailers can’t afford to ignore. According to Salesforce, AI-powered product recommendations are predicted to drive $260B in online sales and $1.6T in in-store sales this holiday season.
That means whether customers are scrolling on their phones or walking into your store, AI is influencing what they see and what they buy. And discovery doesn’t stop there; it begins long before shoppers even hit your site.
“89% of consumers say social media impacts their holiday shopping decisions.”
– Q4 2024 Sprout Pulse Survey
From TikTok to ChatGPT:
Where Holiday Shoppers Look for Gifts
Today’s customers aren’t waiting until they’re in-store to start looking for the perfect gift. They’re turning to discovery tools first. According to Sprout Social, 89% of consumers say social media impacts their holiday shopping decisions. TikTok, Instagram, and Pinterest spark inspiration, while AI tools like ChatGPT are answering questions like, “What’s a thoughtful $100 gift for my partner who loves cooking?”
These early discovery moments matter. If you’re not part of the digital conversation where your customers begin their search, chances are, a competitor will be. And the secret to standing out on these channels comes down to one thing: personalization.
“65% of Generation Z respondents and 62% of millennial ones say that personalization influences their spending.”
– Statista, 2025
Why Digital Discovery Shapes Holiday Purchases
Personalization is the thread that ties social media and AI together—and it’s a proven driver of sales. People are 40% more likely to spend more when they feel the shopping experience is highly personalized, as data from Think with Google indicates. And on a generational level, 65% of Gen Z and 62% of Millennials say personalization directly influences their spending.
For retailers, this means personalization can’t just be an afterthought. It has to be built into how you craft ads, write emails, and design product recommendations. Do it well, and you turn digital discovery into digital dollars.
Standing Out in a Holiday Season Shaped by Tech
These insights make one thing clear: holiday shopping isn’t just happening online — it’s being shaped online. AI recommendations guide what customers see and choose, social media sparks the discovery that gets them started, and personalization ensures they feel seen enough to spend more.
For retailers, that means your digital presence isn’t something “extra” that supports your store. It is your store. And the more you lean into these tools—building content that inspires, investing in personalization, and showing up where shoppers begin their search—the better positioned you’ll be to stand out in the holiday rush.
Power Up Your Personalization Before the Holidays
Book some strategy sessions with a TTG coach to light up this year’s holiday sales.
