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Forbes Article
Inclusive marketing could open brands up to nearly $1 trillion in purchasing power, but the growing queer community is too often an afterthought by many brands. That is, unless, it’s June.
The Growing Demographic Markets Don’t Know About
The Growing Demographic Markets Don’t Know About GETTY
A recent study, The $1 Trillion Blind Spot, done in collaboration with Kantar Consulting and Hornet, the LGBTQ social media platform with a large number of Centennial users, shows that younger generations are more fluid in their sexual orientations and gender identities than ever before in history. For example, The $1 Trillion Blind Spot, shows that 8% of Boomers consider themselves LGBTQ+. Each generation has a successively larger LGBTQ+ demographic , showing that 31% of Centennials or Gen Z identify as LGBTQ+. In four years, Centennials will start entering the 25 to 34-year-old age group coveted by markets.
Therein lies the problem for brands and their opportunity.
LGBT buying power is on par with other minority groups, yet LGBT ad-spend is lower
Either because brands view it as too risky or they don’t know how to market to this growing demographic, brands spend considerably more of their ad dollars marketing to the African-American, His-panic and other minority communities than they do the queer community. By virtually ignoring the queer community, brands risk alienating an entire, growing demographic. Likewise, queer people are members of every other cohort. Ignoring one part of a demographic’s characteristics while trying to engender another is proving disingenuous as brands try to connect with more minority communities.
LGBTQ people are also African-American, Hispanic, Asian-American, women and people with disabilities. As brands engage one cohort, they would be well-advised to see their customer base as something other than mono-characteristic but diverse within its diversity.
Marketers risk alienating younger generations with an outdated understanding of sexuality, gender
For decades, brands have tried to appeal to the 25 to 34-year-old age group (of which 20% of Millennials claim to be LGBTQ) because it’s more likely to spend its disposable income and because of its influence over current culture. Yet, as time passes and the make-up of this age group evolves, brands have been hesitant to completely evolve with it.
To be fair, brands are more apt to be inclusive with their marketing when it comes to age, race and gender but are hesitant to be inclusive when it comes to sexual orientation and especially gender identity. Even as brands are willing to sponsor Pride events and change their social media logos to rainbows in June, LGBTQ people are hard-pressed to feel included the rest of the year.
A brand only willing to include African-Americans in its marketing or research and development in February would be questioned on its motivation, yet brands and the population, in general, don’t share the same concerns with LGBTQ marketing.
On the surface, highlighting this limited inclusion may seem ungrateful. But there’s strong evidence to suggest broadly excluding LGBTQ people for most of the year is having negative effects on its and the business world’s success.
Is it any surprise that LGBTQ people spend most of their disposable income on alcohol, hospitality and personal hygiene and an inadequate amount on banking products? Is it a coincidence that these industries spend a fair portion of their ad dollars in the LGBTQ community when financial services considers itself inclusive by including white women and the occasional African-American person in advertising?
LGBTQ+ are well above 10% of the adult population, higher in younger demographics
Traditional estimates have suggested that the LGBTQ community makes up between 4% and 7% of the overall population. Kantar and Hornet’s study suggests that the LGBTQ+ community makes up more than 10% of the overall population and that younger consumers are more inclined to identify as LGBT or Q.
It found that 92% of Boomers identify as exclusively straight, while 87% of GenXers, 80% of Millennials and 69% of Centennials do. The fluidity within the queer community shows a similar trend, with 33% of Boomers, 29% of GenXers, 16% of Millennials and 10% of Centennials identifying as exclusively lesbian or gay. Therefore, while the overall population is growing more diverse, the makeup of diversity is changing.
It’s true that many brands and marketers may be flummoxed by this fast evolution. The brands and marketers that embrace and capture the attention of the growing queer community the way the alcohol, hospitality and personal hygiene industries have, will capture the lion’s share of the $1 trillion U.S and the $3 trillion global purchasing power of the queer community.
The Q+ demographic identifies with and is seeking non-heteronormative content
Kantar and Hornet say that jumbling the growing Q+ demographic with the straight population, which is often the case, is “misplacing” them. Their findings suggest that “this group’s attitudes, behaviors and consumption patterns (the ABCs) more closely align with the LGBT community than the straight population.”
Kantar and Hornet continue by saying that “brands and businesses looking to communicate with the future of the marketplace must engage these individuals on their terms.” Not doing so will hurt their bottom line.
LGBTQ+ early adopters and like brands that display their success
Making the queer community an even more ideal demographic with which to do business, LGBTQ+ people have proven themselves willing to become raving fans of certain brands and be early adopters to new products and services.
Thirty-percent of exclusively straight respondents and 43% of LGBTQ+ respondents said they like to buy brands that show others they’re successful. Fifty-five percent of exclusively straight and 69% of LGBTQ+ respondents said they’re usually one of the first people in their friend group to accept or try new things. Therefore, established and higher-end brands with new products and services to launch should want to engage the queer community.
The reasons why brands have been hesitant to engage the queer community, at least year-round, is outside the scope of this article and the research performed by Kantar and Hornet. However, as more studies are showing, it’s adversely affecting queer individuals, not least of which their financial security, and leaving money on the table for brands in an increasingly competitive and fast-changing marketplace.
The Growing Demographic Markets Don’t Know About
The Growing Demographic Markets Don’t Know About GETTY
A recent study, The $1 Trillion Blind Spot, done in collaboration with Kantar Consulting and Hornet, the LGBTQ social media platform with a large number of Centennial users, shows that younger generations are more fluid in their sexual orientations and gender identities than ever before in history. For example, The $1 Trillion Blind Spot, shows that 8% of Boomers consider themselves LGBTQ+. Each generation has a successively larger LGBTQ+ demographic , showing that 31% of Centennials or Gen Z identify as LGBTQ+. In four years, Centennials will start entering the 25 to 34-year-old age group coveted by markets.
Therein lies the problem for brands and their opportunity.
LGBT buying power is on par with other minority groups, yet LGBT ad-spend is lower
Either because brands view it as too risky or they don’t know how to market to this growing demographic, brands spend considerably more of their ad dollars marketing to the African-American, His-panic and other minority communities than they do the queer community. By virtually ignoring the queer community, brands risk alienating an entire, growing demographic. Likewise, queer people are members of every other cohort. Ignoring one part of a demographic’s characteristics while trying to engender another is proving disingenuous as brands try to connect with more minority communities.
LGBTQ people are also African-American, Hispanic, Asian-American, women and people with disabilities. As brands engage one cohort, they would be well-advised to see their customer base as something other than mono-characteristic but diverse within its diversity.
Marketers risk alienating younger generations with an outdated understanding of sexuality, gender
For decades, brands have tried to appeal to the 25 to 34-year-old age group (of which 20% of Millennials claim to be LGBTQ) because it’s more likely to spend its disposable income and because of its influence over current culture. Yet, as time passes and the make-up of this age group evolves, brands have been hesitant to completely evolve with it.
To be fair, brands are more apt to be inclusive with their marketing when it comes to age, race and gender but are hesitant to be inclusive when it comes to sexual orientation and especially gender identity. Even as brands are willing to sponsor Pride events and change their social media logos to rainbows in June, LGBTQ people are hard-pressed to feel included the rest of the year.
A brand only willing to include African-Americans in its marketing or research and development in February would be questioned on its motivation, yet brands and the population, in general, don’t share the same concerns with LGBTQ marketing.
On the surface, highlighting this limited inclusion may seem ungrateful. But there’s strong evidence to suggest broadly excluding LGBTQ people for most of the year is having negative effects on its and the business world’s success.
Is it any surprise that LGBTQ people spend most of their disposable income on alcohol, hospitality and personal hygiene and an inadequate amount on banking products? Is it a coincidence that these industries spend a fair portion of their ad dollars in the LGBTQ community when financial services considers itself inclusive by including white women and the occasional African-American person in advertising?
LGBTQ+ are well above 10% of the adult population, higher in younger demographics
Traditional estimates have suggested that the LGBTQ community makes up between 4% and 7% of the overall population. Kantar and Hornet’s study suggests that the LGBTQ+ community makes up more than 10% of the overall population and that younger consumers are more inclined to identify as LGBT or Q.
It found that 92% of Boomers identify as exclusively straight, while 87% of GenXers, 80% of Millennials and 69% of Centennials do. The fluidity within the queer community shows a similar trend, with 33% of Boomers, 29% of GenXers, 16% of Millennials and 10% of Centennials identifying as exclusively lesbian or gay. Therefore, while the overall population is growing more diverse, the makeup of diversity is changing.
It’s true that many brands and marketers may be flummoxed by this fast evolution. The brands and marketers that embrace and capture the attention of the growing queer community the way the alcohol, hospitality and personal hygiene industries have, will capture the lion’s share of the $1 trillion U.S and the $3 trillion global purchasing power of the queer community.
The Q+ demographic identifies with and is seeking non-heteronormative content
Kantar and Hornet say that jumbling the growing Q+ demographic with the straight population, which is often the case, is “misplacing” them. Their findings suggest that “this group’s attitudes, behaviors and consumption patterns (the ABCs) more closely align with the LGBT community than the straight population.”
Kantar and Hornet continue by saying that “brands and businesses looking to communicate with the future of the marketplace must engage these individuals on their terms.” Not doing so will hurt their bottom line.
LGBTQ+ early adopters and like brands that display their success
Making the queer community an even more ideal demographic with which to do business, LGBTQ+ people have proven themselves willing to become raving fans of certain brands and be early adopters to new products and services.
Thirty-percent of exclusively straight respondents and 43% of LGBTQ+ respondents said they like to buy brands that show others they’re successful. Fifty-five percent of exclusively straight and 69% of LGBTQ+ respondents said they’re usually one of the first people in their friend group to accept or try new things. Therefore, established and higher-end brands with new products and services to launch should want to engage the queer community.
The reasons why brands have been hesitant to engage the queer community, at least year-round, is outside the scope of this article and the research performed by Kantar and Hornet. However, as more studies are showing, it’s adversely affecting queer individuals, not least of which their financial security, and leaving money on the table for brands in an increasingly competitive and fast-changing marketplace.
