A Must Read for Marketers! Basis Technologies Introduces Their Vertical Knowledge Brief on Diversity

Key Takeaways

• Growth in Diversity
  • Diversity is growing with each generation
  • Gen Alpha & Gen Z are the most diverse and multicultural generations to date
  • The LGBTQ+ population is also growing with 66% of the LGBTQ+ community falling between the ages of 18-39
• Culture & Sentiment
  • Culturally & racially diverse populations enjoy celebrating their communities and feeling a connection to their heritage
  • Still, while many are proud, they also feel frustrated and anxious
  • The rate of discrimination of culturally and racially diverse communities is high
  • While people of different backgrounds place the same amount of importance on political issues, they believe the driving factor for division in the U.S. is differences in race and ethnicity
• Media Usage
  • Social media usage among culturally and racially diverse populations is high
  • The Latinx community spends a large amount of time on TikTok and streaming TV
  • Black adults spend more time online than the average U.S. adult and are also heavy streamers
  • Asian American Pacific Islanders spend more time online than any other racial or ethnic community and are heavy social users, especially on YouTube
  • The LGBTQ+ community spends significant amount of time on social media due to the community building aspect
• Buying Power
  • Buying power reaches nearly $8 trillion among culturally & racially diverse populations in the U.S. and will continue to grow over the next several years
  • Buying power of the Latinx community is over $2 trillion making it the highest among marginalized groups and among the fastest growing
  • Black purchasing power is about $1.8 trillion and the community over indexes in purchasing wellness products
  • Both Latinx and Black buyers switch brands more often than the average U.S. adult
  • Asian American Pacific Islander households spend 16% more than any other racial or ethnic group and their buying power is the fastest growing
  • The LGBTQ+ community has significant buying power and advanced savings habits, but many struggle with their spending habits
• Diversity in Business
  • The number of minority owned businesses in the U.S. is lacking behind the communities’ share of population
  • Within samples of Latinx, Black, Asian American Pacific Islander, and LGBTQ+ owned businesses’ ad spending and creatives, brands’ spending habits mimic media consumption habits
  • The share of companies with diversity sitting on their executive teams has increased; and companies with more diversity on their executive teams outperform those with less diversity
  • DEI initiatives at workplaces are increasing
• Representation of Diversity in Media
  • Consumers seek out media that caters towards their demographics and want more representation in media
  • Marginalized groups are underrepresented in character roles
  • Asian characters have increased in recent years though they often still follow the “model minority” stereotype
• Representation of Diversity in Ads
  • Representation of racially and culturally diverse populations sit far behind their actual shares of total population
  • Consumers feel brands have a duty to display diversity in their advertisements, and diverse audiences appreciate when brands have relatable spokespeople, content, and advertisements
  • When brands effectively reach racially and culturally diverse populations, advertisements influence those populations at a higher rate than the general U.S. population
  • Analysis of media spend and creatives for brands advertising towards culturally and racially diverse populations
  • Brands are often afraid to approach diversity and inclusion in their advertisement strategy without proper guidance
  • While many brands are successful, there are many ads that perpetuate stereotypes
• Research-driven Audience Analysis
  • Demographic and behavioral analysis of the following audience segments as decided by included research:
    • Latinx TikTok Users
    • Black Wellness Consumers
    • Latinx and Black Brand Switchers
    • LGBTQ+ Heavy Spenders
    • AAPI Inclusive Media Celebrators