What Back-to-School Digital Ad Spend Says About Retail's Winners and Losers

Back to school is a major retail moment, but not only for backpacks and binders. The digital advertising trends seen from June through August serve as a litmus test for broader strengths and weaknesses shaping the market, shedding light on consumer confidence as well as the health of various retail categories. With macroeconomic uncertainty plaguing the nation, the 2025 season was no different. This year we saw a surge in electronics ad spend, an overall decline in apparel (with some surprising brand-level outliers), and consumer interest reflected in ChatGPT queries. 

Digital Ad Spend: Electronics Surges, Apparel Struggles To Keep Up

In the context of back-to-school shopping, the consumer electronics category encompasses items like laptops, headphones, and tablets. Notably, this vertical saw a 40% jump in ad spend this summer, even despite overall headwinds (such as supply chain issues) facing the industry. Brands took advantage of back to school as a seasonality spike, showing that even when categories struggle broadly, strategic timing of ad investment can pay off. 

When it comes to apparel, the story is a little different. The category struggled to compensate for those same economic adversities, and was unable to make overall gains. Ad spend from June to August of this year dipped by 13% — but a few key brands managed to rise above the noise. Gap (which also encompasses Old Navy) increased their spend by  1% YoY, while Aeropostale saw their budget skyrocket more dramatically, with a 674% YoY boost. 

In addition, the latter made up 12% of overall back-to-school spend in 2025, up from only 1% the year prior (Gap went from 9% to 8%). Both entities were able to turn these increases into tangible boosts to web and mobile app performance. While the category shrunk overall, these successes show the ability of agile brands to stand out even as competitors pull back. 

ChatGPT Queries Reflect Consumer Demand and Purchase Intent

Furthermore, as ChatGPT and other AI chatbots become more integrated into consumers’ buying journeys, it’s more crucial than ever to keep an eye on the way in which user prompts influence purchase decisions. This year, 14% of back to school related prompts were linked to sales and product promotions. Of that group, 8% centered around sales, and 6% on specific products. 

Digging deeper into queries within the clothing and fashion category also provide clues as to shifting consumer demand. 66% of those prompts were related to outfits and clothing, 25% to backpacks, and 8% to shoes and accessories — with makeup and personal care items bringing up the rear at 1% of all back-to-school clothing queries. This is another signal that people are actively using tools like ChatGPT to guide them during seasonal shopping events, and also offers insight as to which items are most sought after this year.

Ultimately, back-to-school season is a microcosm of overarching trends and patterns impacting the digital marketing ecosystem. What we saw this year? Electronics making notable gains, apparel more cautious but with bold outliers, and consumers turning increasingly to AI to influence their shopping lists. As we continue to keep an eye on these key verticals, check back in to see how the categories fare as we approach Q4.