Marketing to Gay and Lesbian Consumers | How-to Guides for running your business from Business.com

For decades, gay men and women have been living invisible lives. Not only in the media and on the streets, but also in the marketplace. That’s changing, however, thanks to growing efforts within the gay community, members of which are actively working to claim their identities not only as citizens, but also as consumers.

Their efforts have paid off. Today, gay consumers are not only participating in the marketplace, but more and more they’re driving it, too. The gay market has come out of the closet and flourished as one of the most powerful and promising groups of consumers in the checkout line. The rainbow flag is colored green, and smart marketers are taking notice.

Gays and lesbians spend more than $600 billion every year; they’re a business owner’s dream customers because they are:

Affluent: The average annual income for a gay household is $61,000, 20.4 percent higher than in a heterosexual household.
Educated: Some 83 percent of gays and lesbians have either attended or graduated from college.
Loyal: Approximately 89 percent of gays and lesbians are brand-affiliated and are highly likely to seek out brands that advertise to them.

Action Steps
The best contacts and resources to help you get it done

Research the market

Gays and lesbians represent a unique demographic in that they include people of all races, genders, incomes and ages-all with different buying habits. Because the market is so diverse, it's best to decide which cross-section of the gay community you want to reach, and to invest in ample market research before you interact with it.

I recommend: Marketing and PR agencies such as MergeMedia Group, Osmosis Medialab, Prime Access, Witeck Combs, The Karpel Group and Fleishman-Hillard’s FH Out Front group specialize in the gay market and can help you research, understand and, ultimately, connect with gay and lesbian consumers.

Advertise in gay media

Surveys show that gays and lesbians watch more cable TV, read more newspapers, and look at more magazines than heterosexual consumers. More importantly to businesses, however, is that they also are motivated more frequently by advertisements to make purchases.

I recommend: Consider advertising in local gay media, a directory of which can be found at Yahoo!; in gay and lesbian business directories, such as the Gay and Lesbian Yellow Pages, or in national gay media, like magazines such as Out and The Advocate, or gay television networks such as Logo and gay-friendly Bravo. Media placement sites like GayMediaExpress.com can help you identify further markets.

Sponsor gay events

The gay population is remarkable for its presence as a resilient and social community. That presence has an enormous economic impact, particularly within urban areas, where gays and lesbians come together to celebrate their community with parades, festivals, sporting events, concerts, film festivals, conventions and more.

I recommend: Gay events that are ripe for sponsorship include annual gay pride parades—a global listing of which appears online at Wikipedia—as well as sporting events such as the Gay Games, community days such as Gay Day at Walt Disney World, regional events such as gay rodeos and trade shows such as the Gay Life Expo.

Go high-tech

Gays and lesbians are early adopters of new technology. Smart marketers will recognize their fondness for high-tech toys and reach out to them via new media, including cell phones, email and instant messages.

I recommend: Gay Web sites such as Gay.com and PlanetOut.com are great places to connect with gay and lesbian consumers, both locally and nationally.

Be subtle and sensitive

Businesses need not be flamboyant in their efforts to appeal to gay consumers. Small gestures-including "partner" in place of "spouse" on patient paperwork if you run a medical practice, for instance, or selling partnership rings if you own a jewelry store-go a long way.

I recommend: Study up on successful gay advertisements with the Commercial Closet Association, which has created a list of best practices for appealing to gay consumers.

Cater separately to lesbians

While most marketers group lesbians together with gay men for the purpose of advertising to them, in reality their demographics and buying habits are quite different. They tend to have children more frequently than gay men, for instance, and to congregate in gay social spaces less often.

I recommend: Lesbians are often left out of the marketing mix. Good places to market to them are on vacations, such as those offered by Olivia Cruises, and at events like the Dinah Shore weekend, the Michigan Womyn’s Music Festival and Women’s Week, held annually in Provincetown, Mass.

Support diversity

Gays and lesbians actively patronize businesses that support them and their issues. That means not just talking the talk, but also walking the walk.

I recommend: Offering domestic partner benefits to your gay employees is an easy way to demonstrate your commitment to gay consumers; the Human Rights Campaign and Lambda Legal offer useful information.

Tips & Tactics
Helpful advice for making the most of this Guide

Succeed with gay consumers, who are moving more into the mainstream every day, by focusing more on their daily lives-financial and family concerns, for instance-and less on their political identities.
Don't just research who your gay customers are, but also what they buy. Gay and lesbian buying habits are highly focused on product categories such as technology and travel, as well as pharmaceuticals, alcohol, automotive and entertainment.
Advertising to the gay community need not be overtly sexual to be effective. Still, as is the case with mainstream marketing, sex sells.
Gay parents represent a unique opportunity for marketers, as approximately 33 percent of lesbian couples and 22 percent of gay male couples have children in their households.
Because fewer gays and lesbians have families, they tend to have more discretionary and disposable income. That means greater ROI for companies who are willing to actively court their gay customers.
Gays and lesbians are trendsetters; successfully marketing new products and services to them can often help marketers gain entrance into larger, more mainstream markets.

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