Gays More Optimistic About The Economy, More Likely to Spend

The same publication projecting that the buying power of the U.S. GLBT population will swell to $743 billion by the end of 2010 is also reporting that gay Americans are more optimistic about the economy.  The Gay and Lesbian Market in the U.S.: Trends and Opportunities in the LGBT Community, 6th Edition, released by market research publisher Packaged Facts, reveals that gay and lesbian consumers are more optimistic than many Americans about the overall direction of the country, its future economic growth, the job market, and their own personal financial condition.

Not only are GLBT consumers more likely to spend their increasing wealth – the gay population is growing in size.  Packaged Facts estimates that the U.S. GLBT adult population exceeded 15 million in 2009 and will likely eclipse 16 million by 2014.  Additionally, the publication reports that 58% of gay and lesbian consumers would buy everyday products and services from companies that marketed directly to the GLBT community.

For those of you not keeping score, let’s review:

1.  GLBT buying power is growing despite a down economy.

2.  GLBT consumers are more optimistic about the economy and are more willing to spend during the economic downturn.

3.  The GLBT population is growing steadily.

4.  GLBT consumers are much more likely to buy from companies that market directly to them.

For American marketers, the writing is on the wall:  not only can the gay consumer segment be highly lucrative, it is a population businesses can no longer afford to ignore.

Welcome to Openly Gay Marketing

Depending on whom you ask, the U.S. gay, lesbian, bisexual, and transgendered population encompasses approximately 16 million people.  Despite the fact that this segment of the population has a buying power of nearly $800 billion, it remains largely untargeted by American businesses.  Historically, the gay community has been either greatly misunderstood by marketers or ignored altogether.

Why is this?  It’s hard to imagine why such a distinct, identifiable target market has escaped the crosshairs of marketing professionals for so long.  A few entities within a few industries have made efforts at pursuing the gay market – airlines, hospitality, tourism, alcohol, and financial services come to mind – but by and large it remains an untapped market.

If targeted right, gay consumers could be a cash cow for American businesses.  The opportunities are there.  The gay community has its own magazines, newspapers, radio stations, and even television networks.   Yet for some reason the gay population seems to perplex the American marketing community.  In speaking to fellow marketing professionals any number of theories abound.  “They’re too hard to target.” “Our product isn’t right for that market.” And my favorite: “I’m afraid we’ll alienate the rest of our customers if we start marketing to the gay community.”

Other demographics have whole agencies devoted to them – Asians, women, Hispanics, elderly – yet I can’t find evidence of a single noteworthy ad agency in the U.S. focusing on the GLBT community (note to self:  start gay-oriented ad agency).  I have come across foreign agencies targeted to homosexuals, and gay-targeted advertising efforts abound abroad.  Yet for some reason, our community remains an enigma to U.S. marketers.

I’ve started this blog to begin a dialogue that should be happening in ad agencies and marketing departments across the nation.  I intend to evaluate the good, the bad, and the ugly in gay-targeted marketing efforts, relay gay marketing news stories of note, and comment on what it takes to market to the GLBT community.  Along the way, I hope to help American marketing professionals unlock the mystery that is the gay consumer.

What are your thoughts?  Any ideas why more companies don’t target the gay community?