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Gay Press Report: Advertising in gay market a $600 billion industry
GLBT advertising on the rise as mainstream market declines, annual report shows
Published Thursday, 15-Jun-2006 in issue 964
While mainstream advertising declines, promotion in the gay media has become a $600 billion dollar market, according to the annual Gay Press Report.
Like all consumers, gays and lesbians are inclined to purchase brands that advertise directly to them, and it looks as though the media has finally caught on. Rivendell Media’s 12th annual Gay Press Report shows that nearly three-fourths of all advertising in gay media is now gay-specific. In 2005, more than 200 gay media publications across the country aimed their advertising at gay and lesbian viewers.
Not only are gay publications targeting their marketing strategies at the gay and lesbian community, but networks such as MTV, On-Demand and Q Television have all debuted GLBT-themed programming.
“As a group [gays and lesbians] exhibit much higher brand loyalty than their straight counterparts,” the report states. “As a result, more and more advertisers are making this consumer group a marketing priority.”
Prime Access Inc. produces the Gay Press Report each year for Rivendell Media, a gay media representative firm. The report is an attempt to track trends in the gay and lesbian market over the long term.
“The gay and lesbian market is a vital contributor to the U.S. economy, but often remains below the radar and underreported,” the report states.
For the year 2005, 151 publications including local and national newspapers, consumer magazines and entertainment guides were represented and calculated in the report. The findings conclude that gay and lesbian press advertisements were up 189 percent over their levels in 1996, with ad spending reaching a record $212.2 million. More than 175 Fortune 500 brands participated in the gay consumer market last year, up from 150 in 2004. In 1994, only 19 such brands advertised in the gay market, the report shows.
With numbers this high it would seem the advertising market as a whole would be showing astounding figures. However, mainstream publications are reporting substantial declines in advertising spending and revenues.
When asked about the cause of this trend, Todd Evans, president and CEO of Rivendell Media, said: “As far as the gay and lesbian market is concerned, it’s just the tip of the iceberg. There is no where to go but up.”
It seems the GLBT community is only tasting the first course of what looks to be a long line of gay-specific advertisements. Evans added that the high numbers represent a shift in marketing strategies that now recognize the spending power of the gay world.
Shane Stahl of the Greater San Diego Business Association gave an alternative explanation for the dichotomy between mainstream and gay media advertisement spending. “With the advent of gay marriage as one of the leading social issues of the past few years, more attention has been brought to our community,” he said. “In addition, a greater amount of research is being conducted in the consumer habits of the GLBT community.”
Stahl also said the GLBT marketing community has been working together to build a constituency whereas the mainstream media tends to separate itself from its competitors.
For whatever reason, whether it is social issues or just a new outlook on advertising, gay-specific marketing is not going anywhere. In fact, even mainstream publications such as People magazine are tuning in to the ever-growing world of GLBT promotion. An Absolut vodka ad was shown in recent issues brandishing a rainbow flag with the title “Absolut Diversity.”
“We are seeing an influx of LGBT advertising in mainstream publications, Web sites and television,” Stahl said. Major corporations such as Ford Motor Company, Subaru, Wells Fargo, IBM and Kodak are bringing more GLBT-themed advertising to the mainstream, he added.
For more information on the Gay Press Report, visit www.primeaccess.net/gaypressreport2005.pdf.
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