New research has revealed just how critical diverse customer groups are to a brand’s bottom line.
The findings revealed that almost 90% of diverse and multicultural consumers report taking action because of a company investing in their community, including telling others about the brand, sharing their support on social media, including switching to a brand, away from a competitor that does not invest in their community. The new white paper entitled Dollars & DEI: Multicultural Consumers’ Insights on Brands’ Media Buying and Marketing Practices carried out by advertising and marketing technology platform Direct Digital Holdings with Horowitz Research, also revealed that:
- 8 out of 10 diverse consumers said they feel more positively about brands that live up to promises to make a concerted effort of support to their communities.
- 8 in 10 say they feel negatively about brands that don’t live up to their promises.
- The large majority of diverse consumers (about 8 in 10), feel more positively about brands that advertise in targeted diverse/multicultural media.
- Nearly 7 out of 10 said that they are purposely investing ad dollars with media that is owned or focused on their respective communities strongly demonstrates support.
- 4 out of 10 respondents said they notice ads more when they appear on targeted diverse/multicultural media channels versus mainstream media.
The research tapped 1,342 US adults 18+ from the Black, Hispanic / Latin, AAPI and LGBTQIA+ communities to share their attitudes and behaviours in light of the marketing world’s scattershot diversity efforts. The results spotlight the perspectives of diverse/multicultural consumers, a group that comprises two-fifths of the American consumer market, yet has not had proportionate attention from the advertising business.
WHY DIVERSE CUSTOMERS MATTER
The research also found that brands, at a time of economic uncertainty, are currently missing out on significant revenue and market share growth opportunities – and jeopardising future growth – due to a lack of appropriate and purposeful focus on the Black, Hispanic/Latin, AAPI and LGBTQIA+ communities.
While ad spending was found to be one of the most impactful ways for marketers to demonstrate a commitment to these audiences, creating ads and content that are inclusive of diverse communities was cited as another strong demonstration of support. To put the findings into sharper focus, both came out ahead of simply sharing social posts.
DIVERSITY DRIVING REVENUE
“Given this compelling data for a growing US economic market segment, there should be no more reason for brands to move slowly in diversifying their media allocations,” said Mark D Walker, CEO and Co-Founder of Direct Digital Holdings. “If we put aside all the rhetoric and platitudes, this is an industry that has always been and should still be about reaching customers and driving revenue.”
Alongside the survey findings, the paper includes insights from brand leaders including HP, McDonald’s and Visa; media and marketing agency executives from Mediahub Worldwide and One50One; publishers of diverse properties such as Black Enterprise, Glitter Magazine, ODK Media, NGL Collective and Pink Media; the architect behind the new DEI trade group H; the Chairman and CEO of MediaLink; and the head of Colossus SSP.
DIVERSE GROUPS CRITICAL TO BOTTOM LINE
“Siloing multicultural and diverse audiences into a separate line item in marketing plans needs to be a thing of the past,” added Alejandro Clabiorne, EVP, Executive Director, New York at Mediahub Worldwide. “This white paper not only makes clear that these groups are critical to marketers’ bottom lines, but also provides the types of insights that will show brands how to effectively reach and resonate with these prospective customers, building traction and brand loyalty that can fuel growth.”
“The research demonstrates that across the board, diverse and multicultural consumers recognise, appreciate and have the disposable income to spend on brands that target their communities either through authentic ad messages or media,” shared Lashawnda Goffin, CEO of Colossus SSP, the sell-side technology company within Direct Digital Holdings. “Brands that have intentionally and sincerely engaged with these audiences have seen the benefit – and those looking to grow their customer base need to follow suit.”
“Making the right consumer connections is about to take on factorial proportions and while values and outlook may hold groups of targets together, beliefs and aspirations will splinter them, requiring, as the research confirms, much deeper considerations for message tone, creative and of course media placement,” added Sheryl Daija, Founder and CEO of BRIDGE. “It’s time for our industry to move from DEI as a philosophy to inclusion as a core business practice and growth driver.”
Click here to download the whitepaper: Dollars & DEI: Multicultural Consumers’ Insights on Brands’ Media Buying and Marketing Practices.
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