“It’s the Super Bowl every day in the digital world, and the brands that aren’t focused on creating an inspiring message to the LGBTQ audience—they’re missing a chance to shine,” says Sean Howell, co-founder and president of Hornet. Hornet is the leading gay social network outside the U.S.
In October 2017, the social media company released a study, LGBTQ Ad Format Effectiveness Study, in conjunction with Nielsen that surveyed 800 LGBTQ-identifying men between 18 and 54-years old. The study explored the efficacy of LGBTQ-themed advertising on queer consumers. It compared the effectiveness of inclusive marketing strategies with generic ads from the same brands. The study measured engagement in terms of brand recall, familiarity and affinity, as well as purchase and recommendation intent.
Hornet gets 31 billion impressions a month. “We have a lot of data and a team of data scientists to help us make data-driven decisions for a better user-experience and a better advertising-experience,” Howell says.
LGBTQ-inclusive advertising helps brands connect with the queer demographic, but it’s not just about a return on investment. For the queer community, as with all minority demographics, inclusion is also about economic equality and self-actualization.
Hear how brands can connect with the queer community and its large purchasing power on Queer Money™:
The purchasing power of the pink dollar
Most recently (2015) estimated at $3.7 trillion, the global queer community’s purchasing power would rank among the larger economies in the world. In the U.S. alone, the queer community’s purchasing power was estimated at nearly $1 trillion. For these reasons, U.S. and global brands are eager to connect with this group.
The LGBTQ men included in Hornet’s study self-identified as people who would recommend to a friend or family member a product or brand they liked by 87% and would pay a premium for a product or service by 73%. Therefore, the brands that can authentically connect with LGBTQ consumers win a business partner.
Hornets study focused on the hotel, automobile, insurance and alcohol industries. Regarding its focus on these four industries, Howell says, “We wanted good data from the biggest advertisers. Each of these categories has its pioneers in advertising for the LGBTQ community, and we wanted to compare LGBTQ-themed ads versus generic-themed ads.”
Here are the statistics marketers might consider.
LGBTQ-themed ads drove stronger brand recall
On average, 62% of those exposed to LGBTQ-themed ads correctly recalled the brands advertised, whereas only 58% of those exposed to generic-themed ads could do so. Not all industries performed equally, though.
Alcohol and insurance drew 15% and 14% stronger brand recognition with LGBTQ-themed advertising, respectively, while hotel brand recognition was 7% stronger with LGBTQ-themed ads. On the contrary, automobile brand recognition was 20% stronger with generic-themed advertising.
LGBTQ-themed ads were perceived to be more positive
LGBTQ-inclusive ads were perceived to be significantly more positive than generic-themed ads. Sixty-six percent of respondents viewed brands that used LGBTQ-themed ads as “progressive,” relative to 56% of those brands with generic-themed ads.
When asked if a brand was perceived to be “inclusive,” 65% of respondents who viewed the LGBTQ-themed ads agreed. Fifty-five percent of respondents who viewed generic-themed ads said the same.
Finally, 61% of respondents who viewed the LGBTQ-themed ads perceived the brand as “caring,” while 52% of those who viewed the generic-themed ads also viewed the brand as caring.
LGBTQ-themed ads are more likely to inspire purchases and recommendations
After seeing the ads, 17% of respondents were likely to purchase from the brands with LGBTQ-themed ads, whereas 13% of respondents were likely to purchase from brands with generic-themed ads. Sixteen percent of respondents said they’d recommend brands with LGBTQ-themed ads relative to 10% who viewed generic-themed ads.
Again, not all industries performed equally. Most significantly, 26% of respondents who viewed an LGBTQ-themed insurance ad were likely to recommend the brand, while only 10% of those who viewed a generic-themed insurance ad were likely to do the same. For hotel brands, LGBTQ-themed ads were likely to be recommended by 13%, as compared to the 4% who would recommend a hotel brand with a generic-themed ad. Alcohol produced equal results for both types of ads at 14% each, while 9% of respondents who saw an LGBTQ-themed automobile ad were likely to make a recommendation, relative to 10% who viewed a generic-themed ad.
LGBTQ-inclusive advertising is good for diversity and inclusion, but is the queer community prepared to respond positively with its pink dollars? Howell thinks so. “This is what the research shows for two important elements. Buyer intent was 40% higher and willingness to recommend was 66% higher.”
Howell continues, “Advertisers already have the data that not being inclusive is out of touch. However, it isn’t just about returns. Companies are an important part of society and frame the values of any country. Echoing Nobel Laureate Amartya Sen, ‘economic inequality is not just a lack of money, it’s an inability to realize one’s full potential in life.’” At the end of the day, that’s what we’re all trying to do, LGBTQ or otherwise.
Companies that connect with queer people, as employees and customers, can do more than just make a sale. They’ll help foster financial security and higher-level needs.
