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Gay couple embracing in front of a park: LGBTQ advertising

Dual Income, No Kids: Cracking the LGBTQ Market

June 14th, 2017   ||    by Melanie Brown   ||    No Comments

In the two years since the U.S. Supreme Court ruled on marriage equality, the LGBTQ community has become increasingly visible in advertising. Companies from Coca-Cola to eBay have featured same-sex couples—and other members of the LGBTQ community—in their television ads. So what do TV sellers and buyers need to know about cracking the dual income, no kids market?

TV Sellers: Sell Without Making Assumptions

The LGBTQ market is a valuable one for advertisers. The buying power of the American LGBTQ population soared to $917 billion in 2016, according to a Bloomberg report. A large portion of this market—75 percent in 2015, according to Florida State University’s Center for Hispanic Marketing Communication—forms part of a dual income, no kids household. This is an ideal population for advertisers because of this market’s higher expendable income.

As a TV seller, it’s important to target this—or any other—niche market without generalizing or making assumptions. The nature of advertising is to group people together into a target demographic, but the LGBTQ population is often a subset of other markets. Members of the LGBTQ community are also members of the black community, the Hispanic community, the parent population, the single-income population, the millennial generation, generation X—and essentially every other demographic category out there. When reporting on ad campaigns, it’s important to take this into consideration.

The LGBTQ community doesn’t exist in a vacuum, but rather as a unique population that requires unique targeting. This isn’t to say, however, that LGBTQ consumers should be entirely separated from general market advertising.

TV Buyers: Highlight Values and Beliefs

People gravitate toward—and are loyal to—brands and companies they believe share their values and beliefs. For many people in the LGBTQ community, this means brands that support civil rights and marriage equality, among other important issues.

According to Matt Tumminello in Advertising Age, companies that make an active effort to represent the gay and lesbian community in their brand messaging are often better received by other groups, like millennials and generation xers, who place a high value on brands that align with their progressive values. And CEOs of huge companies like Facebook, Apple, Starbucks, and Google—along with brands like Oreo, Doritos, Pepsi, and more—have been steadily showing their support for the LGBTQ community over the past few years in different ways, according to the Huffington Post.

With the current spending power of the LGBTQ population nearing $1 trillion, advertisers would do well to invest in deeper target marketing of the LGBTQ community. And they should remember that the execution of on-air advertising is just as important as the data and targeting itself. A carefully crafted message can go a very long way.

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