In today’s conclusion to our three-part Q&A with Community Marketing, Inc. President Tom Roth, we take a look at trends that might shape the marketplace in the next five years. If Tom is right, the future is looking better all the time, leading me to ask the question that my colleague Jon Garbo has been using to signoff on his recent podcasts: If You’re Not Out Front, Where Are You?
Ben Finzel: What future trends do you see predominating in the next five years?
Tom Roth: Wow that’s a biggie, and you saved it for last. We’ve been taking a pulse on the LGBT market since 1994, when we ran our first market research study. In the past year alone, we have produced and analyzed over 30,000 gay and lesbian surveys, and conducted about 100 focus groups and advisory boards. There are many ongoing and emerging trends to consider. Here are a few of the leading trends, in brief.
1. The end of “Pink Washing”
Community Marketing Inc. coined this term for companies that are explicitly marketing to the LGBT community with ads and promotions, but at the same time are fighting against internal employee equality or are supporting anti-gay causes. These companies slap a rainbow on their ads, and expect the three-dollar-bills to flow. They are putting on a thin gay-friendly veneer, but there is no substance behind it.
More aware gay and lesbian consumers are voting with their wallets. Consumers are aware of the HRC Equality Index when choosing a company to buy from, or work for. Travelers are selecting qualified TAG Approved hotels and resorts, known for their gay-progressive best practices. They are choosing to visit destinations that are making outreach, while ensuring that vacation experience is genuinely welcoming for all, including the gay community.
2. The Marketing Power of Inclusivity
I was amazed that the word “inclusivity” doesn’t exist. Exclusivity does, of course, but not inclusivity. Here is where we need to really wake up and anticipate the future of the LGBT market: Gays and lesbians 30 and under, and gay men and lesbians 60 and over are different animals. We’ve learned this from our research studies, as well as from qualitative focus groups throughout the USA and the UK. Younger gays and lesbians, obviously, foretell the trends of our market in the coming decade.
Of course there are shades of gray, but this is the general delineation we are observing:
Gays and lesbians age 30 and under are looking for messaging and imagery representing inclusivity.
Your message to gay consumers 30 and under? Inclusive, diverse, integrated. “Gay” is no big deal. “Maybe I don’t even identify with the word. Its just part of who I am; my straight friends have no issue. I have the confidence that I can go almost anywhere, and be who I am.” Younger gay consumers don’t always have quite as much discretionary income, but by earning their loyalty now, you have the opportunity to create an annuity of business throughout their lifetimes.
Generational differences are real. Different approaches to these markets are valid, and should be interpreted into your marketing plans.
3. Marketers Become “Gay Aggressive”
Perhaps the most striking trend is in terms of how actively marketers are presenting themselves to the community. To demonstrate the point, I’ll use some case studies from the tourism industry, a leading LGBT market.
A decade ago, Holland made waves with its position as “a tolerant place” for gay and lesbian visitors. At that time, the concept of “gay-tolerant” was a huge breakthrough, as Holland was among the first few marketers to explicitly work to increase gay visitor volume. Looking back, it is hard to fathom being “tolerated” by a marketer, but it was a major achievement back then.
Then came the “gay-friendly” approach. Several destinations arrived in the gay market in the late ‘90s with their rainbow-hued appeals to the LGBT community. The formula was in interpreting their mainstream creative to be gay-inclusive. It was a somewhat tentative, passive approach; better than “tolerant,” but not quite an invitation.
As social and political comfort levels increased in the early part of this decade, more ambitious marketing campaigns arose from a variety of destinations and travel services. They took the time to conduct gay and lesbian photo shoots, invested in clever ad and promotional campaigns, and worked within the community to identify best practices for internal organization and external outreach. The message became, “we are gay-welcoming” as they rolled out the pink carpet for gay and lesbian travelers.
The latest evolution phase of this important trend reflects an unprecedented global awareness of LGBT issues: The passing of marriage and civil union laws, increasing equalization of corporate employee benefits, and the appearance of gay characters in numerous TV shows and movies. The worldwide comfort level with this community is gaining momentum, and that is reflected in the increased comfort level in boardrooms as gay marketing is considered.
Philadelphia, not even on the gay map only a few years ago, has led the competitive charge with a long-term, broad-based marketing campaign, which includes an award-winning gay-specific television ad. They are among a select collection of destinations that can claim to be downright “gay-aggressive.” Montreal also made a breakthrough statement in its sexy ad campaign that stated, simply, “We love that you’re totally out here.” A far cry from “tolerant” Holland of 10 years ago, Montreal actually loves having gay visitors. Fort Lauderdale’s LGBT business leaders pulled their local business community together with their Convention & Visitors Bureau to launch a comprehensive, cohesive and powerful campaign. They gained the awareness of LGBT consumers, and have earned enormous South Florida market share as a result.
These gay-aggressive marketers work within their local communities by forming “gay tourism advisory boards.” They launch half-million dollar/year campaigns, track bottom-line results and present them in board meetings, and defend their position against negative politicians. They compete for gay dollars by aggressively competing for their attention with catchy ads and slogans. A final example: Air Canada, already a strong contender in the gay marketplace but now taking the step toward gay aggressive, has been running a truly amazing ad that features the upward-pointing fuselage of a jet, with a small but suggestive message, “Enjoy the ride.”
These are but a few of the leading trends we are observing. Clearly, “LGBT” is a dynamic, exciting and sometimes challenging market place. But with the right partners, experienced guidance, and solid preparation, the upside and long-term growth potential is virtually unlimited.
Ben Finzel: Tom, I can’t thank you enough for this engaging, informative, thorough examination of LGBT marketing. I hope our readers will bookmark this post and save it for future reference: you’ve given all of us an excellent roadmap to use in considering our own activities and programs.
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Tom,
I really enjoyed your comments; especially about “pink washing” and “inclusivity”. As a gay man, and an owner of a automotive site that interacts with major automotive agencies, we actively reject Pink Washing by informing our consumers who is gay-friendly and who isn’t and striving to only work with gay-friendly companies. We promote inclusivity by advising agencies to cater to the audience but not necessarily go over the top. Unfortunatley, some “experts” in the glbt ad industry don’t agree with your idea of inclusivity.
For example, go to http://www.gaywheels.com/new/cadillac/ and notice the ads there. A dealer took the national Cadillac campaign and added a few words to it to target the Gaywheels.com audience. By adding “isn’t that what we all deserve” to Cadillac’s Life. Liberty. and the Pursuit. campaign, he hit “inclusivity” on the head. When shared this with the “experts”, they said it wasn’t gay enough. The high click through rate for these banners compared to mainstream ads begs to differ.
Thanks again for your great insights!