• Market Research Gay Market Report 2009

Market Research Gay Market Report 2009
Automotive Advertising in the Gay Market
Pride and Prejudice - The Automotive Industry and "The Gays"
It wasn't that long ago that it was considered heresy to utter the words convertibles were strongly represented, so were more mundane vehicles
"gay" or "lesbian" in the halls of the world's automotive headquarters. It like the Toyota Camry and Yaris. This data seemed to support and dispel
is amazing what a difference time and the efforts of a few daring people certain stereotypes about the GLBT community.
can make. Not only are automotive manufacturers recognizing the
importance of providing safe and equitable work environments for their Each quarter since the first Top 10 list, Gaywheels.com has published
GLBT employees, a select few are courting them aggressively in print, TV, their Most Researched data. The list tends to be self-perpetuating but
online and through grassroots efforts. new brands enter the ranks and the models surprise even the most edu-
cated researchers. The most recent list included six hatchbacks, four of
The GLBT Consumer - What the Data Says which started under $16,000 - not exactly the high-end luxury cars that
the stereotypes portray.
The country is slowly acknowledging that the "gay movement" is far from
detrimental to the fabric of society and in fact, adds color, texture and The History of Targeted Automotive Advertising
panache to the weave. This comfort level brings awareness which leads
to curiosity and ultimately the desire to know more about the GLBT con- With all the data pointing to early adopter, brand loyal consumers, you'd
sumer. There has been anecdotal evidence of the purchasing power of assume that there would be fierce competition to advertise to and cap-
this demographic but it wasn't until experienced researchers began ture this audience. Unfortunately, it seems that until recently prejudice
focusing on the GLBT community did the real power of the market come and lack of education have overruled business acumen in the decision to
to light. actively market to the GLBT consumer.
The most quoted fact is that statistically, GLBT households have more With that said, some automotive brands mirrored the early-adopter
disposable income. According to the recently updated analysis by Witeck- behavior of this demographic and started marketing the GLBT community
Combs Communications and Packaged Facts, the total buying power of as far back as 1994.
the U.S. gay, lesbian, bisexual and transgender (GLBT) adult population in
2008 is projected to be $712 billion.* That is an upward trend from GM's Saab division was the first automotive company to advertise in the
$690 billion in 2007 and $450 Billion in 2004. From a pure purchasing GLBT media but it was Subaru's efforts starting two years later that
power perspective, this is a desirable segment of the market. established that brand as the gay-friendly automotive brand. Subaru has
been the most consistent auto company to market to the GLBT communi-
Additional data shows that GLBT consumers are early adopters of tech- ty and made the bold move to include GLBT imagery and messaging as
nology, fiercely brand loyal and more recently, very interested in spending part of the marketing strategy. It is no surprise then that Subaru has the
their money with companies that treat their own GLBT employees equally. highest brand recall for this segment.
Data as a Catalyst for Change Other brands followed Saab and Subaru's lead. VW, Jeep, Saturn,
Mercedes-Benz, Lexus and Cadillac have all placed general market ads
B
The last point is the cornerstone of the founding of Gaywheels.com; the in gay media but it was Ford's Jaguar, Volvo and Land Rover that were
first automotive web site to target the GLBT consumer. The site is a full the first American-owned brands to place gay-specific ads that included
automotive resource with a twist: it classifies automotive brands as gay- GLBT messaging and imagery in both print and online.
friendly or not based on their corporate policies in the U.S.
The AFAtermath
Since its inception in June 2005, Gaywheels.com has raised the level of
awareness on both sides of the automotive purchase equation. GLBT Unfortunately, what is good for the goose isn't necessarily appetizing for
consumers are using the information to alter their research patterns and the gander. The ads from Volvo, Lincoln and Jaguar were the catalyst for
the manufacturers have realized the importance of providing an equi- one of the most publicized and poorly handled PR blowups in recent his-
table work environment as well as reaching out to the GLBT consumer. tory. While the GLBT media and consumers applauded the advertising -
In the three years since Gaywheels.com launched, two major automotive even awarding the Volvo campaign for its inclusion and messaging - a
manufacturers have changed their corporate policies effectively putting 5 certain right-wing group took offense to the advertising. The "American
additional brands in the "gay-friendly" column. Family Association" (AFA) called for a boycott of Ford Motor Company cit-
ing their support for the "homosexual agenda". Soon after, Ford
They Have Cash But What Do They Drive? announced that it would no longer advertise in gay media.
The nature of Gaywheels.com allows data to be revealed that prior to its The AFA quickly took credit for Ford's cancellation of their advertising in
existence was difficult to gather. In July 2006, Gaywheels.com published GLBT media and Ford was oddly silent, neither confirming nor denying
its first Top 10 Most Researched vehicles list which for the first time shed the AFA claim.
light on what GLBT automotive consumers were researching. The infor- Ford's response to the AFA, or lack thereof, set off a cyclone of contempt
mation largely dispelled many stereotypes held as truth in marketing cir- in both the mainstream and GLBT media. Ford finally made a statement
cles about the GLBT automotive buyer. Of the 10 vehicles that were the and denied that their decision had anything to do with the AFA and
most popular on the inaugural list, only 1 was from a luxury brand. While claimed it was solely a financial decision.
page 108 www.GayMarketReport.com
 Gay Market Report 2009 Market Research
From a PR perspective, Ford waited too long to make any statements and
most likely lost some loyal GLBT consumers as a result. Some might also
argue that the ads that caught the attention of the AFA in the first place
were too politicized. Ford was donating money to the GLBT political
action group Human Rights Campaign (HRC) for every Volvo, Jaguar or
Land Rover that was sold as a result of the ad campaign.
From a GLBT consumer's perspective, it was a great campaign. They were
taking an extra step to support the community by donating to a widely
known advocacy group. From purely marketing perspective, it was risky
move that clearly hit the nerve of the AFA. All they saw was that Ford sup-
ported HRC and HRC = gay marriage. Like it or not, gay marriage is a very
controversial topic with deep-seeded opposition with heavy religious over-
tones.
The controversy eventually blew over and when the AFA recently took
credit for Ford's sales decline, it barely garnered mention. Unfortunately,
the impact that this had on the psyche of automotive marketers is still in
effect today. While brands are advertising in GLBT media, including In addition to advertising in magazines like GENRE and THE ADVOCATE,
Ford's Volvo, the messaging is not GLBT-specific. The same ads placed in their Saab, Saturn and Cadillac brands have engaged the gay consumer
The Advocate or Gaywheels.com show up in TIME or WSJ.com as well. in other ways.
Importance and Impact of GLBT Imagery and Messaging Cadillac is the official sponsor of vignettes on LOGO, the largest GLBT
channel on cable. Saturn has worked with Gaywheels.com in sponsoring
If you ask a gay consumer or someone involved in GLBT media if targeted Gay Pride events in the Southeast and all three brands were recently fea-
ads are important, you will most likely receive an affirmative response. tured in a speed-dating event at Motor City Pride in Detroit. GM has also
Surveys of GLBT consumers clearly show that the respondents prefer to held targeted events for GLBT media and has been very consistent in
"see themselves" in the advertising messages in media targeted to them. their message of inclusion and support.
There is little empirical evidence to support this when it comes to auto-
motive advertising but the one data point available is compelling. Their approach is admirable in that it has long-term goals and it is contin-
ually seeking new methods of messaging the GLBT consumer. Other
In July - September of 2007 Gaywheels.com had two Saab ads running than past efforts by Subaru, no other major auto company is approaching
on the site. Both were the same size (300x250) and both featured the this market in the same way.
Saab 9-3. The first ad was targeted to U.S. customers only and featured
a general market message that called out pricing and lease deals. The Working from the Inside Out
second ad was targeted to Canadian customers only and featured a
GLBT-targeted message using the tagline of "Because not all roads are Most coverage of the automotive companies' marketing to the gay con-
straight". The Canadian ad had a click-through rate 6x higher for the sumer focuses on the marketing itself - the ad, the sponsorship, the
same time period than the general market ad targeted to the U.S. cus- event. While they are very important, very few have looked at the impor-
tomer. tance of creating brand advocates from within the organizations them-
selves.
While the example above is not perfect, you have to consider geographic
difference and the delta in audience size, it seems to support the pub- HRC has something called the Corporate Equality Index (CEI) with ranks
lished survey data that indicates a targeted message is more effective at companies on their corporate polices. While a site like Gaywheels.com
reaching the GLBT consumer. simply uses the availability of same-sex domestic partner benefits to
classify a company as gay-friendly, HRC's CEI uses a more complex for-
Gay Auto Outreach Today mula to rank those companies on a scale of 0-100. Six major auto mak-
ers have achieved a perfect score of 100 - Toyota, GM, Ford, VW, Subaru
As the competition for consumers gets more intense and technology and Chrysler. Two of those have done even more to ensure their employ-
makes niche marketing more effective, smart companies are increasing ees have an equitable place to work.
their exposure in GLBT media. The automotive companies are far from
leading this charge but are definitely in the game when it comes to Both Toyota and GM have strong internal employee resource groups that
reaching out the gay demographic. While no U.S.-targeted advertising are supported by management. These organizations provide an internal
currently incorporates GLBT-specific messaging and imagery, the auto "voice" for all the GLBT employees within the organization and act as a
companies are being more consistent in their ad buys and have valuable resource for management to ensure that their external and
branched out to include sponsorships, grassroots promotions and ancil- internal messaging are in-sync.
lary support of the GLBT community.
These groups also advise HR and Marketing on the importance of recruit-
General Motors has been the leader in this segment in the recent past. ing and marketing their respective companies to potential employees and
www.GayMarketReport.com page 109
Market Research Gay Market Report 2009
customers. Both Toyota and GM have been active supporters of the Out Automotive companies with strong diversity initiatives for gay & lesbian
& Equal conference and of NGLJA. employees include:
Company CEI Rating* Fortune 500 Rating
Ford and Chrysler have internal groups but have not been as active in the - Toyota Motor Sales, USA 100
past few years. - Subaru 100
- Chrysler 100
Future Outreach - General Motors 100 3
- Ford 100 7
The future of GLBT automotive advertising is difficult to predict but it is - Volkswagen of America 100
sure to mirror mainstream trends in the move to online and video. As gay - Visteon Corp. 95 219
media outlets become more pervasive and support for targeting this - Bridgestone Tires 80
demographic increase from within the auto companies, more brands will - Avis Budget Group 60 405
join the early adopters and include GLBT media in their buys. The smart - Nissan North America 50
brands will realize that they need not fear GLBT-specific messaging and - Delphi Corp. 45 83
imagery and that the payoff is far more lucrative than any imagined back- - Cooper Tire & Rubber 33 701
lash. - Navistar Intl Corp. 30
- Lear Corp. 20 130
Article by Joe LaMuraglia - GayWheels.com - Dana Corp. 20 255
CEI Rating: HRC Corporate Equality Index is a tool to measure how equitably companies are
treating their gay, lesbian, bisexual and transgender employees, consumers and investors.
Travel Industry in the Gay Market
A
s the GLBT market has grown and developed over the past 30 Gay & Lesbian Tourism, as well as the annual Gay & Lesbian Travel
years, it’s been the travel industry which has embraced and been at Industry Directory, reaching travel trade, meeting planners and media in
the forefront in marketing to the gay & lesbian community. The major markets across the US and Canada.
world of Gay & Lesbian Travel is the most diverse and mature. There are LINK: www.CommunityMarketingInc.com
companies dedicated exclusively to gay travel marketing and business
associations solely for the world of gay travel. Key findings from Community Marketing's 12th Annual Gay & Lesbian
Tourism Study have been compiled from responses from self-identified
On the Business-to-Business (B2B) front, the first and foremost of these gay and lesbian consumers who read LGBT publications, visit LGBT web-
is the International Gay & Lesbian Travel Association (IGLTA), one of the sites, and attend LGBT events. With over 7,500 responses, this study
largest and oldest gay business associations worldwide. Founded in polls more respondents than any other LGBT tourism survey, and offers
1983, membership today is at 1200-plus and growing, with members valuable insights about consumers who may be reached through LGBT-
representing all facets of travel today including airlines wishing to reach dedicated marketing initiatives.
the gay market, travel agents primarily serving the gay market, hotels and
resorts designed exclusively for the gay traveler, etc. The list goes on! In addition to our annual Tourism Study, CMI produces custom online sur-
With conventions and symposiums held each year all throughout the veys, focus groups, field studies and customer satisfaction evaluations for
world, the IGLTA is one of the finest representations of a truly global trade a wide variety of clients including CVBs, DMOs and tourism offices, tour
association that mirrors the growth of the gay community worldwide, with operators, hospitality groups, developers, etc. In the year 2007 alone,
members and events held in Europe, North America, South America, CMI collected and analyzed over 50,000 gay and lesbian survey respons-
Africa and Australia. With the rise of gay & lesbian representation in es.
Asia, it is expected that more and more members and events will grow
from this region. Based on tourism industry data from the US Department of Commerce
LINK: www.IGLTA.org and CMI sample demographics, the annual economic impact of LGBT
travelers is approximately $64.5 billion in the US alone.
On the marketing side, Community Marketing, Inc. (CMI) has emerged as
the leader, helping their tourism and hospitality clients better reach and Throughout the report, distinctions of various LGBT markets are made
serve the gay and lesbian communities since 1992. Community based on gender, age, ethnicity, income, geographical location, etc. Below
Marketing's tourism practice supports their clients with market research, are samples of the findings from the US Profile of the report.
strategies, and cost-effective marketing planning. Clients include leading
CVBs and tourism offices world-wide as well as hotel groups, airlines, Gay & Lesbian Travel Trends
rental car and cruise companies, tour operators, etc. - The majority (76%) of U.S. lesbian and gay respondents have a valid
passport, compared to 24% to 30% of all adult US citizens. 57% of
With over 15 years of LGBT tourism research expertise, Community gay men and 34% if lesbians traveled internationally in the last
Marketing has become the industry's leading source of gay tourism data twelve months.
and insights. CMI's research has helped quantify why the "gay travel mar- - Gay and lesbian travelers took a median of five overnight trips in the
ket" should be included in every diversity marketing initiative. In addition, preceding twelve months, including two leisure trips, two personal
Community Marketing produces the annual International Conference on trips and one business trip. 24% took five or more leisure trips; 24%
page 110 www.GayMarketReport.com