What makes holiday ads truly effective in APAC?

'Tis the season for holiday advertising. It may be the most wonderful time of the year, but it's also the most saturated for ads—often leading to ad fatigue for consumers and making it increasingly difficult for marketers to cut through the noise and standout. 

 

Overall, advertising spend during the holiday season is anticipated to rise significantly, with estimates suggesting a 9.5% increase in Q4 2024 compared to 2023, reaching approximately US$271.58 billion globally.

 

In APAC, the year-end extended holiday season spans across distinctly different celebrations such as Diwali, Christmas and the Lunar New Year—each marked with its unique traditions and consumer behaviours.

 

"The region’s diversity is so vast that even for a single given holiday, each country would have different nuances to how it is celebrated," says Kenneth Koh, head of commercial sales, Southeast Asia, Yahoo DSP. 

 

And for that reason, brands that tailor their messaging to reflect key values—for many it would be the spirit of giving for Christmas or family togetherness for Lunar New Year—tend to resonate more.

 

"Personalisation plays a critical role, and we’re seeing more brands utilise dynamic creative optimisation (DCO) to help create personalised quality creatives that tap into the meaningful traditions and nostalgia of the holidays," adds Koh. "These commonly include holiday colours, festive designs and cultural symbols."

 

Indeed, holiday advertising can be highly effective in the broader APAC region when tailored to local customs and preferences. While Christmas is traditionally a Western holiday, international brands have successfully captured the attention of younger audiences in APAC through offline events and special experiences.

 

"Emotional storytelling and culturally relevant themes—especially those centred on family, tradition, or prosperity—tend to perform well," says Olivia Plotick, founder of Wai Social and expert in the field of China marketing. "Global brands that incorporate localised elements such as traditional colours, meaningful symbols, or collaborations with local influencers can build stronger connections with their audience. Additionally, adopting innovative advertising formats and emphasising interactivity can enhance appeal and engagement."

 

In markets like the Philippines, Christmas is widely understood as a gift-giving and family-focused time of year. 

 

"It’s good to recognise the region’s strong cultural focus on homecoming, food, and the family," says David Guerrero, creative chair of BBDO Guerrero. "Recent work highlighted in Campaign’s round up of Christmas ads (including BBDO Guerroro's Philippine Airlines: Care That Comes From The Heart) tended to include elements of all three!"

 

 

Viv Gibson-Thomas, executive strategy director at Houston Group, says that tailored ads will always win, because we all know the holidays mean different things for different people in different cultures. 

 

"Leo Burnett’s 100-year-old words still ring true: 'The more you know your customer, the more your advertising works'," adds Gibson-Thomas. "Here in Australia, Aldi is a great example of tapping into the irreverent Aussie humour through their localised Christmas campaigns–and surprise, surprise, their business continues to grow."

 

 

Do holiday ads need to shift from aspirational to values-driven?

 

Shoppers during the festive season have become more practical and budget conscious in recent times, largely due to economic factors and the rising cost of living. So, do adverts need to shift from emotional storytelling to functional messaging to reflect these sentiments? 

 

"During the holiday season the divide between emotional and functional advertising is bigger than Christmas lunch," says Gibson-Thomas. "Brands either play the short game with fast sales for fast cash—inundating us with an overload of festive supplies and gift ideas. Other brands pull on emotional heartstrings. Ideally, brands do both. What’s changed recently? Storytelling is becoming a marketing luxury. Why? That E word which impacts budgets faster than you can say 'I’m in a food coma.'"

 

Despite economic pressures, many consumers are not willing to sacrifice their holiday celebrations. According to a PwC report, 85% of consumers plan to cut back on spending, but overall spending is still set to increase due to strategic purchasing behaviours.

 

"While aspirational messaging—portraying the 'perfect Christmas' or idealised family moments—still has its place, it often feels disconnected from the realities of today and easier for brands to be perceived ‘out-of-touch’ than relatable," says Stevie Weber, chief strategy officer, Droga5 Aotearoa, part of Accenture Song. "However, this year, two brands in New Zealand have managed to strike a lovely balance: the supermarket duopoly, Woolworths and Countdown. Both brands have focused on human connection and the magic of Christmas in a way that feels genuine, relatable, and still seamlessly tied to the products on offer–without veering into the overly dramatic or far-fetched."

 

Weber adds that rather than abandoning emotional storytelling altogether, "advertisers are increasingly blending emotion with practicality, creating a holiday narrative that speaks to both the heart and the head."

 

 

Tom Hargreaves, head of strategy at TBWA Singapore argues that while he's noticed a shift to more functional storytelling through lower funnel communication tactics, he doesn't agree that festive shopping has become more practical.

 

"Festive times have always been about connecting, sharing, giving and celebrating—none of which are practical at all. Brands need to elevate themselves to these levels or they will become commoditised by price alone."

 

Earlier this year, TBWA ran a Chinese New Year campaign for the largest supermarket chain in Singapore, Fairprice, that tapped into the magnanimous spirit of the dragon from the zodiac race who helped the others along. 

 

"We asked Singaporeans to tap into that spirit, and think of others with less at a time of so much abundance," says Hargreaves. "Through tapping into this spirit, we elevated our campaign and gave the value and deals based messages more meaning in the campaign."

 

 

Colleen Ryan, partner at insights agency TRA in Australia, says that their data has shown that people are ready to be playful during the holidays, and they have had enough of the doom and gloom.

 

"People don’t need to be reminded of how tough things are, instead they see ads a source of reminding every one of the joys of Christmas," says Ryan. "Christmas emotions are enduring, they don’t change so the challenge is to find the sweet spot where the current mood of the nation intersects with the enduring mood of Christmas, that’s where the magic is to be found."

 

A recent study conducted by the Yahoo Singapore Digital Marketers Pulse—revealed that 61% of Singaporean marketers prioritised performance goals over brand building.

 

"In APAC where performance considerations such as sales and conversions are priority for a majority of advertisers, ads naturally tend to focus on value-driven messaging with the aim to get consumers to ‘add to cart’," says Koh. "While value-driven messaging—such as product benefits and discounts—is the most straightforward way to get consumers to ‘add to cart’, marketers would be missing out on the opportunity to tap into the holiday opportunity to build brand equity. The key is to strike a balance."

 

In fact, Koh adds, "Yahoo’s internal data in Q4 last year revealed that campaigns featuring holiday-themed ads achieved a 4.4x higher conversion rate compared to non-holiday-themed ads."

 

"For example, by tapping into the warmth and nostalgia of Christmas or the communal excitement of Lunar New Year, brands can forge emotional bonds that extend far beyond the holiday season," says Koh. "These don’t have to be limited to big-budget holiday branding campaigns or tearjerker commercials—a bit of heart and holiday cheer can go a long way."

 

APAC consumers shopping differently this holiday season

 

While mega sales events like 11.11 prompt early buying, 75% of APAC shoppers say they keep a closer eye on promotions during the holiday season and make purchases when they feel they can secure the best deals.   

 

"Amidst this year’s economic sensitivities, consumers will be looking to stretch value even further—beyond just dollars and cents," says Koh. "To capitalise on this, brands need to provide seamless touchpoints and experiences across online and offline channels, and combine in-store experiences with digital engagement such as click-and-collect."

 

In markets like China, growing adoption of digital wallets such as Alipay and WeChat Pay has simplified holiday spending. 

 

"Features like shared payments with family or friends and interest-free installment plans have diversified payment scenarios, making it easier for consumers to make purchase decisions," says Plotnick. "Chinese shoppers expect a seamless integration between online platforms and physical stores, particularly for high-value or experiential purchases. Live streaming and social commerce are pivotal, as consumers often rely on recommendations from trusted KOLs or peers. Younger generations are especially inclined to follow trends, invest in celebrity-driven products, or support brands aligned with their personal values."

 

Meanwhile, e-commerce is shaping many consumers' expectations for constant availability and easy delivery of products. As a result, we often feel we can postpone purchases until we receive year-end bonuses or until the pressure to buy intensifies. Sale events like Black Friday play a crucial role in motivating us to begin spending earlier in the season.

 

"From a communication point of view, brands that build up preference and desirability early-on have a better chance of being picked in that last-minute rush," says Guerrero. Unlike in the West, where campaigns often emphasise individual experiences or gifting, APAC audiences connect deeply with stories about sacrifice, traditions, and community bonds. Brands that adapt their campaigns to these nuances can make a more lasting impact with audiences in the region."

 

Can brands still stand out this holiday season?

 

To counter the inevitable ad fatigue that many consumers experience over this period, many advertisers are starting their holiday campaigns earlier, a strategy known as 'Christmas Creep.' This approach allows brands to reach consumers before the peak of the holiday season and helps mitigate ad fatigue by spreading out messaging over a longer period.

 

Holiday advertising has traditionally leaned toward an extravagant, idealised aesthetic—hyper-curated and seemingly perfect. However, Weber of Droga5 Aotearoa believes the true opportunity lies in crafting campaigns that feel authentic, embracing the messiness and chaos that we all know so well.

 

"Christmas is the most wonderful, yet undeniably stressful, time of year, and brands that lean into this truth and cleverly leverage the imperfections and relatable struggles will cut through the noise and connect with consumers on a deeper level," says Weber. "Brands must surprise and delight by subverting the familiar and embracing the unexpected. Rather than relying on tired tropes of polished perfection, those that take risks with creative formats, unique storytelling, or unconventional visuals will capture attention."

 

Hargreaves of TBWA Singapore says that, above all, quality is the key to cutting through. "It is easy to fall into the trap of creating more discounts and 11.11 deals that will guarantee clicks. But that will only harm in the long run. Quality of output is the only way we will make people care."

 

Meanwhile, don't forget playfulness. "Christmas is a time when people can drop their regular routines so using play and playfulness is the key," says TRA's Ryan. "Play takes us out of everyday realities and lightens our mood, even if we know that it is only temporary."