China’s economic malaise deepened in November. Retail sales rose just 1.3% YoY, well below analysts’ median forecast for 2.8% growth, despite blockbuster Singles Day promotions. Investment and industrial output also fell short of expectations, signaling greater caution from businesses and individuals as they grapple with trade and economic uncertainty. To succeed in this difficult environment, brands will need to localize their marketing and product strategies, be competitive on price, and invest in immersive experiences to draw shoppers in.
Meta’s global ad marketplace is splitting into two distinct cost curves. According to new Emplifi data, retail CPCs nearly doubled from $0.16 to $0.32 over the past year, while ecommerce CPCs fell from $0.23 to $0.19 as Meta’s AI optimization drove sharper efficiencies. The overall median CPC declined from $0.19 to $0.15, indicating advertisers aren’t cutting spend—they’re reallocating as automation improves returns. Retail’s mixed online–offline goals make optimization harder, while ecommerce benefits from clearer conversion signals. With Q4 competition intensifying and holiday ecommerce projected to grow 7%, marketers should expect sharper CPC swings and plan for agile bidding, creative iteration, and real-time budget shifts.
Healthcare AI startup OpenEvidence is aiming to raise $250 million in equity funding, amping its valuation to $12 billion, which doubled from just two months ago, per The Information. OpenEvidence’s surge in valuation underscores physicians’ growing demand for AI tools that surface credible, peer-reviewed information.
18 bills aimed at strengthening online protections for minors advanced in the US House on Thursday, including a modified version of the Kids Online Safety Act (KOSA). Adapting strategies and preparing contingency plans for any youth online safety laws is essential for advertisers, especially as other regions like Australia go full steam ahead with regulation targeting minors’ online habits.
After Netflix won the bidding war and Paramount pushed forward with a hostile bid, a new possibility is emerging for the fate of Warner Bros. Discovery (WBD). The Information reports a possible compromise between Netflix and Paramount, where Netflix would acquire WBD’s studio assets and Paramount would be in charge of its HBO Max streaming service and cable networks. Netflix remains the frontrunner without any conclusive regulatory action preventing the acquisition, but Paramount remains the best option for advertisers.
Destination XL and FullBeauty Brands plan to merge in early 2026, creating a unified inclusive-apparel retailer serving 34 million households and nearly 300 stores. The combined company aims to leverage shared customer insights, manufacturing scale, and complementary product expertise to deliver better fit, broader assortments, and a more cohesive omnichannel experience. The merger also targets $25 million in annual savings by 2027 through improved sourcing, organizational efficiencies, and cost reductions. With a large share of US adults needing inclusive sizing yet historically underserved, the deal positions the new entity to meet demand with more consistent, high-quality offerings at scale.
On today’s podcast episode, we discuss our “very specific but highly unlikely” predictions for 2026: sports team sponsorships pushing the envelope, the ceiling for TikTok Shop, and a budding relationship between creators and retail media networks. Join Senior Director of Podcasts and host Marcus Johnson, Senior Analyst Ross Benes, Senior Forecasting Analyst Oscar Orozco, and Principal Analyst Max Willens. Listen everywhere, and watch on YouTube and Spotify.
OpenAI’s GPT-5.2 is its answer to advancing models from Gemini and what the company calls its best model yet for professional use. The latest model improves spreadsheet creation, presentation building, code generation, understanding of images and long contexts, tool use, and handling of complex projects, per an OpenAI blog post. As brands expand past using AI for image generation and into higher-level tasks, experiment with GPT-5.2 by testing each mode to see which offers the most dependable outputs for analytics, planning, and creative development.
AI is permeating retail and playing a substantial role in the purchase journey for many holiday shoppers this year, though many didn’t notice its presence. More than three-quarters (78%) of US adults said AI touched their holiday shopping experiences—including via “delivery notifications, return systems, or virtual assistants”—per Liveops’ Holiday AI and Customer Service report. Gen Zers led the charge with 89% using AI in some way during holiday shopping. Gen Z’s comfort with automation makes them a great testing group for AI copilots, and retailers should experiment with genAI-driven personalization, on-site product suggestions, and conversational assistance.
Meta is shifting strategy from mining its online social networks to tapping more real-world conversations as original posts on Facebook and Instagram fade, per Social Media Today. Its acquisition of Limitless and partnership with ElevenLabs open up new data channels for its AI models. Meta’s alternative AI training sources could deepen personalization and predictive insights if these conversation flows feed next-gen recommendation engines. Advertisers might gain richer behavior signals and context that go beyond scroll patterns and likes.
AI chatbot use has crossed from novelty to habit for US teenagers. Nearly half (46%) of teens ages 13 to 17 use chatbots at least once a week, per Pew Research, including 16% who access AI several times a day or almost constantly. A new generation of AI-native users is emerging and could soon define which chatbots and AI services become the industry standard. Marketers should pressure-test AI integrations for age-appropriate use cases. As teen AI use grows, safety-first design can earn trust and long-term loyalty.
Consumer loan volume and credit risk are getting harder to gauge as lending moves away from banks and into alternative consumer lending. One estimate says that private funding for consumer lending fintechs could support almost $140 billion in global lending over several years. FIs’ general disinterest in riskier borrowers means that they migrate to fintechs, which may retain the risk or shift it to banks and investors in ways that reveal little about borrowers on the hook for repayment. If the trend continues, widespread defaults could hit the financial system, and few will know exactly what to expect.
Meta has rolled out major upgrades to partnership ads on Facebook and Instagram, introducing new AI-enabled tools, broader creator discovery surfaces, and an API that lets advertisers programmatically convert UGC and creator posts into paid ads at scale. Partnership ads already outperform standard formats—19% lower CPAs and 13% higher CTRs—and with Gen Z more receptive to creator messaging and most consumers taking action quickly after seeing creator content, Meta is formalizing the path from organic influence to paid performance. For marketers, the message is clear: creator content is now a foundational performance lever, not an experimental add-on.
North Carolina-based Self-Help Credit Union is suing Fiserv for alleged lax security practices related to how Fiserv accessed its secure data. Self-Help seeks compensation for fees that it says it paid to enhance security. Financial institutions (FIs) are ultimately responsible to customers and regulators for their vendors’ actions, and it’s a huge compliance problem when one doesn’t follow through. Small FIs are known to struggle with technology talent and budgets, so they depend heavily on partners to meet their obligations. That makes FI oversight of their vendors even more essential.
The Home Depot launched a new creator portal this week, a hub where creators can access content inspiration, campaign opportunities, and expertise to build content around home improvement, DIY projects, and decor tips.
The deal lets mid-market advertisers tap intent-rich audiences with automated, outcome-based TV campaigns
Even as consumer attitudes toward AI in advertising remain mixed, agencies are rapidly expanding their use of AI across the marketing lifecycle. But significant resistance remains, especially when AI is used in ad creative. As agencies scale AI adoption, consumer sentiment underscores the need for restraint and intentionality—using AI for work behind-the-scenes, but resisting entire AI creative.
Costco is gaining market share across nearly all categories it operates in, as shoppers respond to its combination of value, quality, and newness, CFO Gary Millerchip said on the retailer’s most recent earnings call. Costco is one of many retailers benefiting from both consumers’ search for value and the K-shaped economy. Like Walmart and Dollar General, the company is well positioned to outperform this holiday season as shoppers cut gift budgets and prioritize necessities. Costco’s results point to a retail environment in which share gains are driven by traffic, value, and loyalty, one that does not bode well for chains that lack pricing credibility or differentiation.
Consumer spending stayed resilient in Q3, but widening gaps between high- and low-income households reshaped retail performance, with affluent shoppers driving growth while budget-constrained consumers cut back. Bank of America data shows most spending momentum came from middle- and higher-income groups, reflected in retailers’ earnings: Williams-Sonoma saw premium demand lift margins, while Pottery Barn lagged; off-price chains thrived as value-seeking surged; and Walmart and Amazon gained share as Target struggled with discretionary softness. Overall, the data points to a sharply diverging retail landscape heading into a holiday season poised to favor mass and off-price merchants.