INDUSTRY REPORT
Higher prices and ad efficiency drove growth, compensating for lower traffic.
The 2025 tentpole was defined by a distinct "quality over quantity" shift. While shopper traffic declined, the market achieved a +12% increase in ordered revenue, driven entirely by a massive lift in Average Selling Price (ASP).
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High-low pricing drove revenue at the expense of margin
Brands established a higher price floor (+37% ASP) but were forced to double discount depth to move units. This strategy secured top-line growth but resulted in a -17% hit to profitability despite strong ad efficiency.

High ticket prices failed to cover rising costs
Despite selling expensive premium items (+18% ASP) without discounting, the category suffered the steepest margin decline of the event (-22%), suggesting a critical disconnect between pricing strategy and operational costs.

Extreme austerity delivered a masterclass in efficiency
By slashing ad budgets by -62% and focusing entirely on high-ticket items, brands matched last year’s revenue while turning a negative ROAS into a massive +51% efficiency gain.

High-intent restocking drove pure profit growth
Shoppers treated Cyber Monday as a necessity-driven replenishment event. Brands capitalized on this high intent by holding firm on price (0% discount lift), turning the category profitable (+1% margin) compared to last year's loss.

Margin discipline saved a low-traffic event
Facing a severe -67% drop in Cyber Monday shopper traffic, brands refused to chase volume with discounts. This "profit first" strategy successfully reversed last year's losses to deliver positive margin expansion (+1%).

High margins funded an aggressive bid for market share
Brands utilized a healthy bottom line (+11% margin expansion) to fund a massive +290% surge in ad spend, effectively "buying" a +50% revenue increase despite plummeting ad efficiency.
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