Marketing to LGBTs - US - April 2010

SCOPE AND THEMES
What you need to know
Definition
Data sources
Consumer survey data
Advertising clips
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Market background
Communicate with LGBTs in LGBT and mainstream channels
Food category spending
Food channels
Non-food categories excluding technology and travel
Non-food channels
Travel
Technology spending
Internet activities
Activities away from home
Activities at home
LGBT attitudes
INSIGHTS AND OPPORTUNITIES
Gay marriage likely to drive travel and create economic benefits to states and companies
Communicate with LGBTs in LGBT and mainstream channels
Target LGBTs with Sustainable Nutrition
INSPIRE INSIGHTS
Who are the Joneses?
What's it about?
What we've seen
Specifics
Implications
MARKET BACKGROUND
Key points
High incomes and disposable incomes make LGBTs a potentially valuable segment for many firms
Figure 1: Income, Education, and employment comparisons between married different-sex couples, unmarried different-sex couples, and same-sex couples (spouses and unmarried)
Figure 2: Income, Education, and employment comparisons between married different-sex couples, unmarried different-sex couples, and same-sex couples (spouses and unmarried)
Gay marriage has positive economic impact; could help cash-strapped states and municipalities
Figure 3: States and municipalities in which gay unions are most recognized, by date
LGBTs in every county of every state, concentrated on the coasts
Figure 4: States with highest proportions of same sex couples, 2008
LGBTs somewhat more diverse than general population
Figure 5: Race/ethnicity of individuals in same-sex vs married couples, 2007
FOOD CATEGORY SPENDING
Key points
LGBTs more likely to report increase in spending on local and organic
Figure 6: Changes in spending on locally grown and organic food, by sexual orientation, October 2009 and January 2010
Figure 7: Changes in spending on locally grown and organic food, by household income, October 2009 and January 2010
LGBTs somewhat more likely to report drinking alcohol
Figure 8: Changes in spending on alcoholic beverages, by age, October 2009 and January 2010
LGBT fast food consumption mirrors general population
Figure 9: Changes in spending on fast food, by age, October 2009 and January 2010
LGBT eating preferences reflect a focus on health and gourmet appeal
Figure 10: Changes in spending on supplements, food and beverages, by age, October 2009 and January 2010
FOOD CHANNELS
Key points
Use of mainstream food channels mirrors that of general population
Figure 11: Changes in spending on food and beverages in food channels, by household income, October 2009 and January 2010
Nearly 1 in 5 report increased spending at grocery stores in last year
Figure 12: Changes in spending on food and beverages in supermarkets, by household income, October 2009 and January 2010
Natural and Gourmet channel popular with LGBTs
Figure 13: Changes in spending on food and beverages in specialty and online food channels, by household income, October 2009 and January 2010
NON-FOOD CATEGORIES EXCLUDING TECHNOLOGY AND TRAVEL
Key points
LGBTs more likely to spend on cookware and furniture, despite recession
Figure 14: Changes in spending on kitchenware and furniture, by sexual orientation, October 2009 and January 2010
LGBTs spend more than average in a variety of categories
Figure 15: Changes in spending on selected non-food items, by household income, October 2009 and January 2010
NON-FOOD CHANNELS
Key points
LGBTs less likely than general population to report increased spending in value channels
Figure 16: Changes in spending on non-food items in selected channels, by household income, October 2009 and January 2010
LGBTs much more likely to report increased spending at specialty stores
Figure 17: Changes in spending on non-food items in selected specialty stores and websites, by household income, October 2009 and January 2010
TRAVEL
Key points
LGBTs spending less than they have in the past but expenditures still above average
Figure 18: Changes in spending on travel and travel accessories, by sexual orientation, October 2009 and January 2010
Figure 19: Changes in spending on travel and travel accessories, by household income, October 2009 and January 2010
Staycations and regional trips replace some trips outside home state
Figure 20: Travel compared to the previous year, December 2009
Word-of-mouth the key driver of location decisions
Figure 21: Motivators for destination selection when visiting a city or country, December 2009
Most book directly with airline or hotel
Figure 22: Method used to purchase most recent vacation, December 2009
Urban centers with large LGBT communities most popular destinations
Figure 23: Top 25 US destinations for LGBT travelers and percentage of visitors who spent a night in a hotel (combined leisure and business travel ranking), December 2009
Figure 24: Top European travel destinations for American LGBT travelers, December 2009
Gay pride events motivate many to travel
Figure 25: Travel for LGBT events, December 2009
Websites that serve LGBT travelers
TECHNOLOGY SPENDING
Key points
LGBTs more likely than general population to increase technology spending in last year
Figure 26: Changes in spending on selected electronic items, by age, October 2009 and January 2010
Income is a key driver of heavy tech spending
Figure 27: Changes in spending on selected electronic items, by household income, October 2009 and January 2010
INTERNET ACTIVITIES
Key points
Many LGBTs are heavy internet users
Figure 28: Changes in use of various internet activities, by sexual orientation, October 2009 and January 2010
LGBTs significantly more likely to report spending more time uploading
Figure 29: Changes in adding content to various internet sites, by age, October 2009 and January 2010
ACTIVITIES AWAY FROM HOME
Key points
LGBTs often spend more on entertainment
Figure 30: Money budgeted for entertainment, by sexual orientation, October 2009 and January 2010
LGBTs more likely to enjoy the arts and dining, despite the economy
Figure 31: Changes in spending on entertainment away from home, by sexual orientation, October 2009 and January 2010
ACTIVITIES AT HOME
Key points
LGBTs somewhat more likely to report entertainment and reading more at home
Figure 32: Changes in spending on entertainment at home, by sexual orientation, October 2009 and January 2010
LGBT ATTITUDES
Key points
Many searching for equality in society and the workplace
Figure 33: Attitudes towards LGBT issues, by sexual orientation, October 2009 and January 2010
Homophobia steadily declining—acceptance of LGBTs rising
Figure 34: Approval for same-sex marriage, 1977-2009
Millennials (Gen Yers) are particularly gay-friendly
Figure 35: Approval for same-sex marriage, 1996-2009
ADVERTISING AND PROMOTION
LGBT imagery ideal for ads in LGBT media outlets and in mainstream channels that LGBTs frequent
Whether to use LGBT in mainstream channels depends on audience
LGBT ads relatively common but print spend declined at beginning of recession
Figure 36: Ad sales for LGBT print publications, 1994-2007
Bravo viewed as most “gay-friendly” brand
Figure 37: Brands viewed as being most gay-friendly, LGBT vs. general population, 2008
Review of LGBT ads
Highly targeted LGBT ads
Ads with subtle LGBT imagery
Examples of LGBT news sites
Television ads with LGBT imagery and messaging
Figure 38: ABC Modern Family Ad, 2009
Figure 39: Interactive male ad, 2009
Figure 40: LOGO RuPaul's Drag Race ad, 2009
Figure 41: National Equality Rally ad, 2009
CLUSTER ANALYSIS
Participators
Demographics
Characteristics
Opportunity
Travelers
Demographics
Characteristics
Opportunity
Networkers
Demographics
Characteristics
Opportunity
Cluster characteristics
Figure 42: Marketing to LGBT clusters, January 2010
Figure 43: Entertainment budget, by marketing to LGBT clusters, January 2010
Figure 44: Use of online media, by marketing to LGBT clusters, January 2010
Figure 45: LGBT attitudes, by marketing to LGBT clusters, January 2010
Figure 46: Number of trips for business and leisure travel, by marketing to LGBT clusters, January 2010
Cluster demographics
Figure 47: Marketing to LGBT clusters, by gender, January 2010
Figure 48: Marketing to LGBT clusters, by age, January 2010
Figure 49: Marketing to LGBT clusters, by household income, January 2010
Figure 50: Marketing to LGBT clusters, by sexual orientation, January 2010
Cluster methodology
CUSTOM CONSUMER GROUPS
Online reviews important to many LGBTs, especially in tech purchases
Figure 51: Category usage, by use of online reviews, January 2010
Partner with bloggers to review eco-friendly and tech products
Figure 52: Category usage, by use of blogs, January 2010
Ads on social networking sites can be an effective means of promotion
Figure 53: Category usage, by use of social networking sites, January 2010
APPENDIX – ADDITIONAL INCOME COMPARISONS
Figure 54: Changes in spending on alcoholic beverages, by household income, October 2009 and January 2010
Figure 55: Changes in spending on fast food, by household income, October 2009 and January 2010
Figure 56: Changes in spending on selected foods and beverages, by household income, October 2009 and January 2010
Figure 57: Changes in spending on entertainment, food and other, by household income, October 2009 and January 2010
Figure 58: Money budgeted for entertainment, by household income, October 2009 and January 2010
Figure 59: Changes in spending on entertainment at home, by household income, October 2009 and January 2010
Figure 60: Changes in spending on kitchenware and furniture, by household income, October 2009 and January 2010
Figure 61: Changes in use of various internet activities, by household income, October 2009 and January 2010
Figure 62: Changes in spending on entertainment away from home, by household income, October 2009 and January 2010
APPENDIX – ADDITIONAL AGE COMPARISONS
Figure 63: Changes in spending on food and beverages in food channels, by age, October 2009 and January 2010
Figure 64: Changes in spending on food and beverages in supermarkets and dollar stores, by age, October 2009 and January 2010
Figure 65: Changes in spending on non-food items in selected specialty stores and websites, by age, October 2009 and January 2010
Figure 66: Changes in spending on entertainment away from home, by age, October 2009 and January 2010
Figure 67: Money budgeted for entertainment, by age, October 2009 and January 2010
Figure 68: Changes in spending on kitchenware and furniture, by age, October 2009 and January 2010
Figure 69: Changes in spending on travel and travel accessories and other selected non-food items, by age, October 2009 and January 2010
Figure 70: Changes in spending on entertainment at home, by age, October 2009 and January 2010
Figure 71: Changes in spending on entertainment, food and other, by age, October 2009 and January 2010
APPENDIX – ADDITIONAL SEXUAL ORIENTATION COMPARISONS
Figure 72: Changes in spending in supermarkets and dollar stores, by sexual orientation, October 2009 and January 2010
Figure 73: Changes in spending on supplements, food and beverages, by sexual orientation, October 2009 and January 2010
Figure 74: Changes in spending on selected non-food items, by sexual orientation, October 2009 and January 2010
Figure 75: Changes in spending on non-food items in selected specialty stores and websites, by sexual orientation, October 2009 and January 2010
Figure 76: Changes in spending on entertainment, food and other, by sexual orientation, October 2009 and January 2010
Figure 77: Changes in spending on selected electronic items, by sexual orientation, October 2009 and January 2010
APPENDIX – TRADE-RELATED ASSOCIATIONS