BIZ Online NGLCC

With over $712 billion in purchasing power, the LGBT community is fast becoming one of the most coveted customer segments in the United States.

But it takes more than waving a rainbow flag to get gay consumers' attention—and loyalty.

BIZ asked six leaders in LGBT public relations and marketing about their experiences in the field and their advice to companies who want a share of the "pink dollar."

• Andy Bagnall is a vice president at Prime Access, a multicultural advertising agency in New York.
• Judy Scheer is Vice President, Strategic Business, at YESDESIGNGROUP, a creative communications and advertising agency in Los Angeles that specializes in the LGBT market.
• Matt Skallerud is president of Pink Banana Media, which helps companies market to LGBT consumers using social networking.
• Bob Witeck is CEO and co-founder of Witeck-Combs Communications, one of the first P.R. and marketing firms to specialize in the LGBT market.

This is Part 2 of our 3-part series. You can read Part 1 here.

NOTE: Participants were not required to answer all questions in our questionnaire. We have published all responses provided.

How have you seen the concerns of LGBT consumers evolve during your career? Are you doing anything differently now than you were 5, 10 or 15 years ago?

Andy Bagnall: LGBT consumers expect more today from marketers who want their pink or lavender dollar. In the past, we were happy just knowing that brands acknowledged us as consumers because we had been ignored for so long. Today there is more "courting" expected from marketers before we make purchase decisions. We want to know that you support our community. We want to know that you've developed products or services with our tastes and needs in mind. We want to be portrayed as three-dimensional men and women in advertising. Long gone are the days when you could slap a rainbow on an ad and pat yourself on the back for a job well done. We expect more from companies today… and we should! And companies, in turn, need to implement strategic, thoughtful, targeted marketing efforts if they want to capture LGBT business and gain market share.

Judy Scheer: Visibility brings power. LGBT consumers still want to support companies that are supportive of the community, but their concerns, like their preferences for products and messaging, have grown more discerning and sophisticated. The overarching desire of the LGBT consumer, however, remains the same today as it was in 1990—that is, to simply see themselves and their lives reflected in advertising, and in the products and services that are offered. They want what any other consumer wants: to be recognized, respected and spoken to directly.

We have seen significant shifts over the past two decades in LGBT marketing and advertising. To put it in perspective, the shifts have happened in a relatively short amount of time. Then, virtually the only companies that were openly advertising to the LGBT market were liquor, beer and AIDS drug manufacturers, and occasionally automotive companies. Today, we have a wide range of corporate clients representing financial, hospitality, entertainment, electronics, pharmaceuticals, and every category imaginable.

We are at a new tipping point when it comes to reflecting LGBT lives directly in advertising. General market advertising placed in gay publications does not move the needle any longer. LGBT consumers want to see advertising that speaks directly to them, in gay and mainstream publications and media. We are working with clients to do just that—fully integrate the LGBT consumer.

Matt Skallerud: I would definitely say yes. Generationally speaking, gays and lesbians have come a long way these past 30 to 40 years, and those who were there at the very beginning see things very differently from those in their 20s and 30s right now. In today's world, gay bar owners are lamenting the fact that their attendance is down.

But is it that gay people have simply moved on, or is that gay people are becoming more and more part of the community at large and spending time in places that are not necessarily so uniquely gay? It seems that this is the case. In Toronto, for example, the LGBT community in their 20s and 30s are going to clubs outside of the gay village, clubs where their friends and peers are going, gay and straight, and there seems to be less and less of an issue regarding their sexuality in these venues.

Not everyone likes this change, however. We all have to be careful what we wish for, whether it's gay marriage or simply overall equality and acceptance in mainstream society. When we get it, there are the subsequent topics of "gay divorce" as well as this melding of gay and straight in communities across the country that not everyone is ready for.

Bob Witeck: We, and many more of us, are becoming more sophisticated in thinking about LGBT consumers and households. We have a deeper understanding of the complexity of LGBT markets, and consider them far more segmented. All of us are learning more about gay parenting, about women and people of color, about LGBT individuals living with disabilities, and about aging issues among LGBT populations. We are not one broad brush stroke that defines all LGBT people, but instead, have shared needs and goals that many other households share. The difference now is that many of these traits are more visible and better understood, and that is valuable for marketers who are working to address these needs and consumer traits.

A common refrain among LGBT business advocates is that everybody's money is green. Do you see LGBT buying power translating into broader social or political power? Can you cite any examples?

Judy Scheer: Absolutely. Broader social and political power is immediately evident in the battle for marriage equality taking place across the country. In California alone, we have seen the LGBT community raise more than $40 million dollars in record time in the attempt to defeat Proposition 8. Add to that the significance of financial support among a growing, visible and vocal number of straight allies—nearly $4 million dollars to fight Prop 8 was raised in just one night at supermarket magnate Ron Burkle's home in Beverly Hills. The gathering tide has a direct impact on socio-political power, as well as societal acceptance and evolution.

As for literal buying power, again, consumerism is a form of activism for the LGBT community. Studies show a majority of LGBT consumers actively seek out companies that support and recognize them.

Bob Witeck: Simply put, business progress is far more swift and sure than political change. We have made enormous strides in corporate America that have not yet translated into legislative successes, but I do think they are drivers of this progress. So companies are doing the heavy lifting, and we hope that elected decision-makers will follow.

How should corporations balance the fact that LGBT consumers are "just like everybody else" with the cultural realities specific to our community?

Andy Bagnall: "Just like everybody else" makes sense as a corporate diversity message or from an LGBT equality standpoint, but not from an LGBT marketing standpoint. There are many categories where LGBT consumers have unique needs and preferences based on the fact that they/we are gay or transgendered. If marketers do not acknowledge and tap into these preferences or communicate their ability to meet these needs, then the message is simply not relevant and the "sale" is not made.

As an example, [my company] Prime Access works with Hyatt Hotels and Resorts in the travel category. Through our research, we know that the number one attribute LGBT consumers look for in a hotel is that they will be welcomed for who they are. This is not even on the radar for the general market. We also know that the LGBT community has experienced a long history of non-inclusion in our society, so as consumers, we do not assume we are included in a general advertising message. That's why our Hyatt advertising has consistently communicated a sense of welcome for LGBTs and a genuine intimacy that you don't see in the category.

Judy Scheer: Cultural sensitivities specific to the LGBT community are as complex as those with any other minority segment. Making sure that LGBT is included under the corporate diversity umbrella is a necessary start. Next, bring in the experts—agencies specializing in LGBT P.R., research, marketing and advertising—to partner with on education, diversity training, specific outreach and marketing initiatives. Work to create culturally and brand-sensitive messaging, and finesse the nuances of communicating successfully to the LGBT employee, consumer and community.

Bob Witeck: Simple. All companies recognize the value of customer "personalization." When I shop, I am not just a gay man. I have other attitudes, values and characteristics that may make me a strong prospect for environmentally sustainable products, or high tech gadgetry that matches my need to be connected. It's encouraging to discover that we are recognized for more of our traits and needs, rather than fewer—and being gay is just one of them.