• by Susan Kuchinskas , August 31, 2007

Earn consumer loyalty by embracing diversity

"Treat us like everyone else, but recognize that we're different."

"Include us in the mainstream, but meet us at our own places."

With mixed messages like that from gay and lesbian consumers, it's understandable that advertisers are not always sure how to proceed. But marketers who can read between the lines and understand the nuanced gay identity can make matches that last.

As a group, gay and lesbian consumers have stronger brand loyalty than straight consumers, according to the 2006 Gay Press Report, published by advertising agency Prime Access Inc. and Rivendell Media. And this is a market worth winning. Although only 7 percent of U.S. citizens self-identify as gay, the report estimates their total combined income at $641 billion.

To tap into the gay geist, you'll need to prove your interest is sincere and your expertise in serving gay and lesbian consumers' needs is real.

This audience does have special needs, especially when it comes to things like financial planning, insurance and housing for unmarried couples. There are plenty of still-untapped opportunities for companies that can meet these demands.

For example, in 2009, Aegis Living, a 10-year-old real estate developer, will open Fountaingrove Lodge in Santa Rosa, Calif., a senior community for the lesbian, gay, bisexual and transgender, or LGBT, market. The development is already 50 percent sold, according to Wes Winter, senior marketing director. After some initial online advertising, Aegis found it didn't need to market - the community did it for them, showing the powerful word-of-mouth available to companies that get it right.

Raising the Bar

Prime Access, a specialist in diversity marketing, has run focus groups within the LGBT community for 15 years. As societal attitudes have shifted toward greater acceptance, these consumers are demanding similar acceptance from marketers.

"Early on, they used to respond to even a suggestion, what we called 'winking at the audience,' a very indirect message," says Prime Access president and CEO Howard Buford. "Now, that's seen as being homophobic. The bar has been raised." Marketers need to very directly address the gay audience.

Ads should use language that is relevant to gay men and women, says Shawn Thomson, creative director of Osmosis Medialab, an agency specializing in this market. For example, a campaign for Wells Fargo used online display ads with the headline, "Take Pride in a bank that takes Pride in you."

"Using key words like 'community' or 'pride' indicates an insider or deeper understanding of what it means to be gay in today's society, and when used effectively, can go a long way in terms of building brand loyalty with gay consumers," Thomson says.

Not that there is exactly one "gay audience." In some ways, lesbians are very different consumers from straight women, but they're also very different from gay men, says Mike Wilke, the executive director of the Commercial Closet Association, which advocates for respectful diversity in advertising.

With the exception of women-oriented brands such as Olivia Cruises, marketers tend not to pay as much attention to lesbians, Wilke says. This may have to do with the perception that they're less marketer-friendly.

"The gay men's stereotype is liking fashion, theater, gourmet goods, opera, the good life - those are all ad categories," Wilke points out. "The stereotype of gay women is they don't like makeup, they don't like fashion, it's generally anti-consumerist."

Those stereotypes have some truth, but they also spur missed opportunities, according to information from GLCensus, an annual survey by OpusComm Group and Syracuse University. Gay men tend to drink more wine than gay women and to entertain more frequently. But gay women drink almost as much beer as gay men. The men tend to be heavier users of the Internet at home, although when it comes to buying everything from travel to clothing, their patterns are close to women's.

Men and women respond similarly to online advertising, with 54.9 percent of men and 53.9 percent of women reporting their purchasing decisions are at least somewhat influenced by the interactive ads they see.

On Target

The most successful campaigns include LGBT people in ads running in mainstream digital media to show the advertiser accepts and values them, and also more targeted messaging in gay media. Prime Access's Buford says advertisers turn to gay-oriented sites because they offer the ability to target and segment within the category.

PlanetOut, which operates the highly trafficked Gay.com and PlanetOut.com has seen an influx of mainstream marketers looking to reach its affluent and influential audience.

Anne Moellering, vice president of brand and product marketing for PlanetOut Inc., says her company's network, which also includes two print publications, offers not only massive reach but also great flexibility in designing special campaigns.

PlanetOut recently worked with Microsoft on a promotion for its Messenger chat application tied to Gay Pride Day. PlanetOut also developed a special channel for Microsoft.

The Core: Inclusion

The Commercial Closet Association has put together some best practices - along with some worst - for reaching this market. The organization advises companies to acknowledge a misstep if a campaign draws criticism and vow to do better.

Including openly gay celebrities in campaigns is a can't-fail strategy that can cross over and appeal to the straight market too. The association recommends looking beyond stereotypes and including gay people of diverse races, ages and abilities, and placing them in the same "slice of life" scenarios used for other market segments.

Inclusion doesn't stop with the ad campaign; it needs to be a core value that runs through the entire company, says Prime Access's Buford. For example, Hyatt Hotels, a Prime Access client, runs display ads showing two men enjoying a magical moment under a waterfall. The message is clear: You can have a great time at a Hyatt Hotel - and Hyatt values your business.

But the actual experience had better match what's promised. What if the reception clerk sneered or raised an eyebrow when these guys checked in?

"You have to back it up with training and messaging to employees," Buford says, "from the people who answer the 800 number to the front desk to the housekeeping staff."