Gay, lesbian, bisexual, and transgender Americans represent a potentially valuable audience, but one with distinct, important differences from group to group under the LGBT umbrella.
LGBT consumers are primarily double-income households without children, giving them a substantial discretionary income. Only 5% of gay couples have a child at home, compared to 20% of lesbian couples. Demographically, LGBT adults live in urban and suburban areas, with 41% in large cities, 20% in medium-sized cities, and 13% in suburbs, according to Community Marketing Inc. Seven in 10 (70%) have a bachelor’s degree or higher. More than eight in 10 (82%) are employed, and 27% have annual household incomes of $100,000 or more.
Four in 10 (40%) have been unaffected by the recession, including 6% who say they have thrived despite the country’s economic turmoil. A quarter (25%) say they or their partner took a pay cut during the recession, and 16% lost their job or have a partner who lost his or her job.
LGBT adults are optimistic about economic conditions improving, notes Witeck-Combs and Harris Interactive. They are as likely as heterosexual adults to think the economy has already begun to improve (12% each), but they are more than twice as likely as heterosexuals (21% vs. 10%) to think it will turn around within six months. More than a quarter of LGBT adults (27%) believe their household’s financial situation will be better in the next six months, compared to 20% of heterosexual adults. Conversely, 20% think their situation will be worse, compared to 32% of heterosexuals.
Most gay men (77%) and lesbian women (68%) believe that marketers’ recognition of their buying power has worked to the community’s advantage when it comes to acknowledgement and social acceptance, according to Community Marketing Inc. The vast majority says their purchase decisions are favorably influenced by marketing that supports their community, such as:
• Sponsorship of LGBT events (91% of lesbians, 89% of gays);
• Equal employment practices (92% of lesbians, 89% of gays); and
• Advertising in LGBT media (86% of lesbians, 86% of gays).
Some 95% are in favor of cause marketing, with 43% saying it raises awareness and money for the cause, and 52% claiming it is a marketing tool but also helps the cause.
Addressing Segments Of The LGBT Market
Gay media is dominated by depictions of gay white males, but that excludes several key segments.
Lesbians consider themselves women first, and wish to be marketed as such. The same messages and imagery that works for gay men do not work for lesbians: depictions of sexuality may entice young gay men, but lesbian women prefer imagery of intimacy and romance. Marketing through lesbian-specific media and events can be successful.
Under-30s are more ethnically diverse and wish to see that represented in marketing targeting them. They mingle seamlessly with the general population and enjoy mainstream media; they are therefore less influenced by LGBT-specific media.
Over-55s are turned off and feel excluded by young, over-sexualized advertising. They have a substantial spending power, but do not feel they are represented in LGBT marketing. Because of the stigma attached to being gay when they came out, they tend to prefer gay-exclusive environments, neighborhoods, and media. For example, they are more likely to prefer to vacation in gay enclaves such as Fort Lauderdale, whereas their younger peers enjoy cities that are less “gay-centric,” such as Chicago and Washington, D.C.
Gay Men are also a diverse group. They most commonly personally identify or have an affinity for “bears” (16%) — big, burly, hairy men. More than one in 10 (12%) identify with “leather,” 6% with circuit parties, and 5% Country & Western dancing.
Terminology
LGBT adults most commonly feel positively about the term “gay and lesbian” in advertising and marketing, with 82% of women and 79% of men in favor of the term. Women are more likely to prefer “LGBT” (80%) to “GLBT” (66%), while 59% of men feel positively toward both. Both groups have more negative than positive associations with “queer” and “LGBTQQI.” (LGBTQQI stands for lesbian, gay, bisexual, transgender, queer, questioning, and intersex.)
LGBT adults do not like the terms “sexual preference” and “alternative lifestyle” in advertising because it suggests their sexual orientation (the preferred term) is a choice. Community Marketing Inc. also cautions against using terms “lifestyle” and “fabulous,” the latter particularly because of its overuse.
LGBT Consumers
Most LGBT consumers are brand loyal. One in eight (12%) stick to specific brands, and 52% are loyal to certain brands but also might try new brands. More than a quarter (26%) prefer certain brands but constantly try new brands. Only 10% are not brand loyal at all.
Gay men (37%) are more likely than lesbians (27%) to dine out at least once a week. Those who dine out spend an average of $60 a week doing so. Nearly half of gay men (49%) and 31% of lesbians go to bars or clubs at least weekly. Those who do spend an average of $30 a week. Gay men are also more likely than lesbians to go to movies (40% vs. 29%) and attend live performances (21% vs. 14%). Lesbians (37%) are more likely than gay men (33%) to attend community fundraisers during the course of a year.
Nearly half of LGBT adults (45%) regularly contribute to a personal savings account. Some 38% pay into Social Security and 35% to a 401(k) or employer-sponsored retirement program. More than a quarter (26%) contribute to a company pension plan. Nearly as many regularly build their IRA (26%), stock, bond, or mutual fund investments (23%), and taxable non-retirement accounts (23%). [Gay/Lesbian, Marketing]
Source: “Gay & Lesbian Consumer Index Study” and presentations at the Gay & Lesbian Marketing Conference, Community Marketing Inc., David Paisley, Sr. Research Director, 584 Castro St., #834, San Francisco, CA 94114; 415-437-3800, x102; david@communitymarketinginc.com; www.communitymarketinginc.com. Price: Available online at no charge.
“LGBT Households Continue To Be Optimistic About The Economy,” Witeck-Combs Communications, Bob Witeck, CEO, 2120 L St. NW, #850, Washington, DC 20037; 202-887-0500; bwiteck@witeckcombs.com; www.witeckcombs.com. Price: Available online at no charge.
© Copyright 2011, EPM Communications, Inc. May not be reproduced without written consent of publisher.