New Study Reveals LGBTQ Spending Habits
Serena Freewomyn is a contributing writer at the The Bilerico Project and she had something to say about how queers spend disposable dollars and the responsibility of the companies that want our money. These are her words’¦
A new report from Prime Access, Inc., an advertising agency that targets African American, Hispanic, gay and urban youth consumers has a lot to say about how the LGBTQ community spends its money. According to the study, we have high brand loyalty for the companies we view as gay friendly. And we also tend to provide a lot of negative word of mouth if we have had a bad experience with a company. The Nation’s Restaurant News reports that:
With buying power estimated to exceed $600 billion a year, the gay and lesbian community represents a potentially lucrative market for restaurateurs to tap. But some operators are doing a better job than others at attracting that audience as customers and employees . . .
I like that people are cutting straight to the point here about why the survey is important. The gays have money. Let’s tap that.
So who’s been tapping that ass? Starbucks, Target, Showtime, Bravo, HBO, Apple, and Subaru ranked highest on the list of companies the gays like to frequent.
“There’s been a lot of research over the years that showed gays and lesbians are highly loyal to brands they buy,” said Howard Buford, president of Prime Access, “and our statistics show that between 68 percent and 72 percent of gay and lesbian consumers are strongly motivated to purchase brands they consider gay-friendly.”
First off, can I just say that I’m happy to have the scientific proof to back up my claims about the Subaru Outback being a total lezzy car? But is it really a shocker that the gays love Bravo and Showtime? Um, hello! Project Runway? The L Word? Queer As Folk? I don’t think the gays needed proof that the networks love us. But apparently the straights did.
I think the most hilarious interpretation of this study is this:
One other thing is that the gay community tends to be a trendsetter. Most of them tend to be influencers of other people. As such, they are important consumers to have because they influence the purchasing behavior of others.
Hello, people! Are you paying attention? We have purchasing power! It’s a good thing I love to shop! But am I the only one who thinks that we need to be utilizing this purchasing power to our advantage?
By the year 2010 gays and lesbians will spend approximately $835 billion annually. . .
That’s a lot of cheddar. I know that the HRC already provides a list of gay-friendly companies. But I think we should be evaluating that money in much larger terms than good, old-fashioned consumerism. I think that we need to re-prioritize how we’re spending those dollars and ask if that money is really being put to the best use for our community.
But I guess what really cheeses me off about this report is that it perpetuates the stereotype that gays and lesbians are all upper-middle class and all we care about is frivolous things like lattes and hair product. (OK, I guess I have to be honest and admit that I do care about lattes and hair product. What lezzy doesn’t?) This study completely overlooks the fact that many in our community are either homeless or on the brink of homelessness, and that many of us are unemployed or underemployed due to homophobia and transphobia. I find it kind of offensive that the study will be used to “target” our community without any corresponding social responsibility for said community.
A case in point: Bacardi is listed as highly gay friendly. I assume this is because they are a typical sponsor for various Pride events around the country. But when’s the last time that you saw Bacardi sponsoring something like hospice care for AIDS patients or substance abuse prevention programs? It’s pretty annoying, in my opinion, that one of the largest and most consistent corporate sponsors of Pride is an alcohol company, when so many in our community struggle with addiction.
I guess what I’m asking for here is a little social accountability. It’s not enough for these companies to target ads towards our community. If they aren’t invested in the community through corporate giving, I don’t think we should be investing in them through our consumer spending habits.
More about Serena Freewomyn
Serena Freewomyn has a degree in Women’s Studies from Arizona State University. She is a long time community activist who has worked for the rights of immigrant and homeless communities. She’s a self-described anarchist, a peace activist, and a big fan of the WNBA (Go Mercury!). After graduating from ASU, she landed in Long Beach, California and for two years, had the privilege of running an after school program for LGBTQ teens. If there is a heaven, she thinks it’s filled with queer kids with bedazzlers who go on sailing trips and produce their own musicals. She is currently working at ASU and attends the Le Cordon Bleu’s Culinary Management Program at Scottsdale Culinary Institute. Her writings can be found at The Bilerico Project.
It is interesting to see the figures flying around with respect to LGBT “buying power.” Some reports, such as the one quoted, state this power as exceeding $600 billion a year and others, such as Witeck-Combs Communications, report a much higher number of $712 billion in 2008. This is a difference of one hundred twelve billion, which isn’t exactly a small figure.
Obviously the exact number is unknown, but what is amazing is to see so many large corporations either choose to ignore this profitable market, or worse, fumble out of the gate in regards to marketing (correctly) to the LGBT community. And, the whole argument about backlash from right-wing religious extremists to companies advertising to the gay community is completely overblown.
Ultimately, I agree 100% regarding how we (the LGBT) community spend our money. Let us reward the small and large businesses that “get it” and choose to invest their time and money in our community via social projects and activism for equality.
Well Saturday is the Big Day…Red Shirted Gays/Lesbians/Trans/Bi’s/Bears/Twinks/Name Your Subgroup will descend on Walt Disney World here in Orlando for Gay Days…and so far WITHOUT the screaming pickets from the Religious Right we had in the past.
Of course about 3 years ago the Chamber of Commerce finally got some Hard Figures on the attendance and amount of money spent and when the Religious folks went to start up again they were pretty much told to
“Sit Down and Shut Up!!…Do You Have Any Idea How Much Money They’re Spending?”.
Even with a Down Economy the estimate is 145,000 have come to Orlando for the Festivities.
And while Disney…with an estimated 20%+ LGBT staff…will not “Sponsor” any of the events in order to pacify the Hetero Family crowd as of last year they started offering Committment Ceremonies at the Grand Floridian Wedding Pavillion..the excuse being since its Legal in Massachussets we’re not going to turn the Money down.
I’m waiting for the day a Same Sex couple forks over the money ($50,000 plus) for the ride through the Magic Kingdom in Cinderellas Carriage…and its done while the Park is Open and you get to waive at all the Guests in the Kingdom as the carriage makes its stately way down a cordoned off Main Street and Through the Castle.
~ Roland
Roland, good point. This is exactly what people in California are hoping about the marriage decision. Gays are gonna spend tourist dollars to get hitched. Ergo, the religious right needs to stfu!