Diversity is Good for Business

Ignoring diversity is leaving money on the table

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Even if diversity, equity and inclusion were bad for business, it would still be good for humanity. And we would still push for it.

But it’s actually great for business. Diverse companies have proven to be more innovative and even more profitable.

Likewise, creating diverse, inclusive work expands a brand’s audience, increases its relevance and boosts likability. That’s how we build our clients’ businesses.

Most clients get this. But it never hurts to remind folks.

ECONOMICS

Diverse audiences have a lot of buying power

The information below only represents the United States. Diversity also makes ads more relevant in global markets— especially Spanish-language work.

U.S. DEMOGRAPHIC	2019 BUYING POWER	INCREASE IN BUYING POWER (2010–2019)
WHITE	$13.2 trillion	40%
HISPANIC/LATINO	$1.7 trillion	69%
BLACK	$1.4 trillion	48%
ASIAN	$1.2 trillion	90%
NATIVE	$127 billion	52%
MULTIRACIAL	$254 billion	74%
50+	$7.6 trillion	N/A
WOMEN	$6.4 trillion	N/A
LGBTQ+ PEOPLE	$1 trillion	N/A
PEOPLE WITH DISABILITIES	$490 billion	N/A

Catalyst, Quick Take: Buying Power (April 27, 2020).

N/A = Data not available

FUN FACT

Women direct 83% of all consumption in the United States through buying power and influence.

THE ADVERTISING GAP

Advertising isn’t reaching every group

Remember, representation isn’t about checking boxes. It’s about connecting.

Mizrahi, Isaac. “Hispanic Millennials Are Closer to the Hispanic Culture Than Most Think.” Forbes, 20 May 2019.
Gwynn, Simon. “The 50+ Age Group Is Still A Grey Area For Brands.” Campaign, CampaignUK, 31 Mar. 2017.
Guttmann, A. “U.S. LGBT Representation in Ads 2017.” Statistica.
Glenday, John. “Disabled People Call on Brands to be ‘Braver’ as Study Uncovers Stigma Around Visibility in Ads.” The Drum, Mar. 2018.

“Brands aren’t doing enough to Represent People like me”

Black 72% 72%
Asian 62% 62%
Hispanic/Latino 59% 59%
People 50+ 89% 89%
LGBTQ+ people 66% 66%
People with Disabilities 54% 54%

EXAMPLE FROM AARP

People 50+ are a third of the labor force, but only 13% of media images show them working. Most own a smartphone, but less than 5% of images show them using technology.

THE BOTTOM LINE

Going beyond stereotypes in advertising boosts clients’ bottom line

How do you go beyond stereotypes in your ads?

Diversity in primary roles (speaking vs background)
Diverse characters in positions of power

Non-stereotypical roles

How does that boost the bottom line?

In a recent study, brands that went beyond stereotypes saw gains:

15% increase in consumer perception

7% boost in stock price

The highest-scoring brands did even better:

83% increase in consumer preference

44% average stock increase over the past two years

Kantar’s Unstereotype Metric analysis also found that inclusive ads show higher return on investment. Progressive portrayals of people in ads delivered:

19% increase in purchase intent
26% increase in the enjoyment of ads

14% increase in brand credibility