Report: 77% of SG consumers turn to online ads for holiday shopping

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Advertisers have a strong opportunity to connect with consumers this festive season, with 77% saying online advertising plays an important role in helping them find products and promotions.

This was revealed in IAS’ "Holiday shopping report", which surveyed around 500 consumers in Singapore to understand how they are approaching the season, how they view digital advertising, and how ads influence purchase decisions.

The study found that a majority of shoppers plan ahead for their holiday shopping before November, and some start as early as August. 57% of the respondents also expect to spend more than they did last year. At the same time, consumers are becoming more intentional, actively seeking the best deals while managing higher prices. As a result, 76% said they will do more online shopping this season.

Don't miss: Study: 73% of SEA shoppers say yes to AI but still want human support

Based on the report, there will a strong focus on online channels, as 64% of respondents shared that they would increase their usage of eCommerce and retail sites, while 61% will up their social media usage. 47% will look to YouTube and video sites as a channel for festive season shopping.

Discounts and promotions (74%) and festive-related content (53%) were also found to be key purchase drivers. Around 68% are also looking to make their purchases on eCommerce sites such as Amazon, Flipkart, and more, as well as on retail sites such as Nike (52%), and specialty gift sites (45%).

Meanwhile, AI is emerging as a tool in the shopping journey, with 74% open to using it and 27% already planning to rely on it for research and gift ideas. These AI tools include chatbots, virtual try-ons, and AI product recommendations. However, price comparison and tracking AI tools (69%) have emerged up top.

What this means for advertisers

According to IAS, advertisers have a strong opportunity to reach consumers online this season as they are more receptive to online advertising. It found that 55% of consumers in Singapore find online ads useful in helping plan both online and in-person shopping decisions. 51% say they save time, and 46% are open to ads when shopping.

Another key takeaway is that more than half (54%) of consumers said online ads placed on safe and reputable sites are deemed helpful, while 50% valued ads aligned with the content they were consuming. This signals that advertisers should make their online ads contextually relevant, and place them on safe and reputable sites to engage with consumers this season.

Beyond the festive season, AI has become a consumer expectation in eCommerce across Asia Pacific. DHL eCommerce’s "eCommerce trends report 2025" revealed that 81% of shoppers in the region want retailers to offer AI-powered features such as virtual try-ons, voice search and smart shopping assistants. Nearly half (47%) are already shopping via voice commands. These tools have shifted from “nice-to-have” to “must-have,” reflecting consumer demand for shopping journeys that blend convenience with confidence.

Financial platform Adyen’s latest retail study further underscored AI’s growing influence. Surveying 41,000 consumers globally, including in Singapore, Australia, Hong Kong, India, Japan and Malaysia, the report found that more than a third (38%) of APAC shoppers now use AI to assist with purchases, marking a 39% increase year-on-year. Among those who use it, 63% said AI helps them make more inspired choices, from outfits to meals.

Accelerate your brand’s growth with AI-first strategies, emerging tech and data-driven experiences. Join 500+ marketing leaders at Digital Marketing Asia 2025 Singapore on 24–25 September to uncover transformative trends, real-world wins and powerful ideas for 2025 and beyond.

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