Marketing out loud: What brands need to know about LGBT consumers

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Marketing Out Loud:What brands need to know about LGBT consumers

John Fetto

Senior Analyst, Consumer Insights

June 23, 2015

2©2015 Experian Information Solutions, Inc. All rights reserved. Experian Public. 2

Introducing our speaker

John FettoSenior Analyst, Consumer InsightsExperian Marketing Services

@ExperianMkt

#shareinsight


Agenda

Spending & preferences

Methodology Household formations

Transgender moment?

By the numbers

Mindsets

Methodology


A brief historyMeasuring sexual orientation

2003: design tests working with recognized experts in the field



Pre-test conclusions

• Hard approach showed no significant decline in response rate overall

• Hispanic response rate was significantly lower where a question on sexual orientation was asked versus those with no question at all

• Decision made to ask sexual orientation only of non-Hispanic respondents



Part of our core Simmons National Consumer Study since 2005

By the numbers


8,314,000 7,809,000 6,371,000

201420102007

By the numbersThe number of “out” adults has risen 30% since 2007

Number of self-identified non-Hispanic LGBT adults

4.2%4.0%

3.4%

+30%


By the numbersMarketers come “out” too


By the numbersMillennials are 53% more likely than Boomers to be out

Percent of adults who identify as LGBT, by generation

5.7%

4.4%3.7%

2.4%

MillennialsGeneration XBoomersSilent Generation

3.0 million

2.0 million2.6 million

650,000


By the numbersMillennials are 53% more likely than Boomers to be out

Percent of adults who identify as LGBT, by generation

5.7%

4.4%3.7%

2.4%

MillennialsGeneration XBoomersSilent Generation

3.0 million

2.0 million2.6 million

650,000

22 - 24

7.3%


By the numbersNearly 1-in-4 LGBT adults are Millennials

LGBT population by generation

38%

22%

34%

6%

MillennialsGeneration XBoomersSilent

+35%+4%

-12%-44%

LGBT households and families


Household formationVast majority of heterosexuals live in mixed households

Heterosexual men Heterosexual women


Household formationGay men are more likely to live alone

LesbianGay men


Household formation3/4 of bi men and women live in mixed households

Bisexual men Bisexual women


Same-sex marriage71% of Americans live in states with same-sex marriage

Same-sex marriage state by state trend

Source: The New York Times


Same-sex marriageNearly 2/3 of Americans support same-sex marriage

Do you think gays and lesbians do or do not have a constitutional right to get married and have their marriage recognized by law as valid?

Source: CNN/ORC poll

45% 49%

54% 51%

36%

0%10%20%30%40%50%60%70%

2009 2010 2015

Yes No63%


Same-sex marriage730,000 lesbian and gay Americans are married

Percentage of adults presently married, by sexual orientation

58%

27%

10% 8%14%

55%

29%

18%14%

25%

0%

10%

20%

30%

40%

50%

60%

70%

Heterosexual LGBT Gay or Lesbian Gay Lesbian

2007 2014

+88%


Same-sex marriage1-in-10 engaged couples are LGBT

Percent of adults married last year or planning to wed this year

2%

5%

4%

8%

Got married last year Getting married this year*

Heterosexual LGBT 551K

*Base: non-married adults


Same-sex marriageOnline searches increased 2.9 times in last 2 years

Online searches for “same-sex marriage” or “gay marriage”Four-week moving estimate ending June 6, 2015

0.000%0.001%0.002%0.003%0.004%0.005%0.006%0.007%0.008%0.009%0.010%

Supreme Court move increased the number of states allowing same-sex marriage to 24

Supreme Court oral arguments

26 marriage rulings in state and federal courts

Supreme Court accepts Ohio marriage case


Same-sex marriageOnline search trends and variations

Percent of adults married last year or planning to wed this year


LGBT ParentsNearly a third of LGBT adults are parents or expecting

Percentage of LGBT adults who are parents or expecting(including parents of adult children)

LGBT Lesbian or gay Gay partnered

32%

17%21%


LGBT ParentsHalf of LGBT parents are raising kids now

Percentage of LGBT adults who are parents or expecting(with kids in home)

LGBT Lesbian or gay Gay partnered

17%

11%15%


Lesbian and gay parentingOnline search trends and variations


Lesbian and gay parentingFeature prominently in today’s LGBT targeted ads

Spending and brand

preferences


Individual IncomeLGBT earnings fall behind their straight counterparts

Average individual earnings, by sexual orientation$4

0,99

8

$40,

998

$42,

697

$48,

466

$50,

395

$51,

595

$52,

381

$59,

979

$61,

352


Household IncomeGay partnered men have the highest household income

Average household income, by sexual orientation

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000


Top LGBT brands overallBeverage brands take 5 of the top 10 spots

2.6X 2.2X 2.2X

2.1X

2.1X

2.1X

2X

1.9X

1.9X

1.9X

1.8X

Alcohol index based on consumers age 21+


Top major LGBT brands*Beverage brands take 5 of the top 10 spots

Mindset


AttitudesThe paragon of the always-on consumer

“I usually carry many devices with me” +2.2X

“I need to be connected to the Internet from the

moment I wake up until the moment I go

to bed”

+2X

“I would be interested in

receiving ads on my phone”

+1.8X“The Internet has become a primary

source of entertainment for me personally.”

+1.6X

Always-On Consumer

“My phone is an expression of who I

am” +1.8X

“I spend less time sleeping because of the Internet” +1.8X


AttitudesM- and e-commerce leaders

“I often go out of my way to find new stores” +1.6X

“All things being equal, I’m more likely

to buy a product online than in the

store”

+1.3X

“I am usually the first among

friends to shop a new store” +1.4X

“I would be interested in a

service that would let me use my phone to make purchases in a

store”

+1.3X

Connected shoppers

“I use the Internet to plan shopping

trips” +1.2X

“When shopping, I use my phone to find deals” +1.2X


AttitudesEcological and socially conscious

“I am willing to pay more for eco-friendly products.” +1.4X

“I often choose modes of

transportation that are friendlier to the

environment.”

+1.7X

“It’s important that other see me as eco-conscious”

+1.1X “If I feel strongly about an issue, I

would participate in a civil protest.”

+1.5X

Eco-friendly

“I am a vegetarian” +1.8X

“I look for organic/ natural cleaning products” +1.3X


AttitudesAlways the first to try new things

“I like to make a unique fashion statement.” +1.7X“I take vacation

experiences that differentiate me from

my friends.”

+1.7X

“People often copy what I do or

wear” +1.4X “I’m usually the first among friends to try

new clothes/ electronics.”

+1.6X

Trendsetters

“I like to stand out in a crowd.” +1.6X

“I like to have lots of gadgets.” +1.5X


AttitudesImage conscious and driven to succeed

“I like other people to think I’m a success” +1.3X“I would one day like

to set up my own business”

+1.2X“I want to get to

the very top of my career”+1.3X

“My car should express my personality”

+1.2XImage conscious

“A designer label improves a

person’s image” +1.4X

“Conformity makes me uncomfortable”

+1.3X


AttitudesSocially connected and outspoken

“I sometimes post ratings or reviews online for others to read” +1.5X“Without social

media, I would feel alone in the world”

+1.6X“I often post or

comment to social media” +1.3X “If I feel strongly

about an issue, I would participate in

a civil protest.”

+1.5X

Connectors

“I am good at leading

discussions” +1.2

“I’m good at convincing others to

try new things” +1.2X

America’s Transgender

Moment?


Transgender interestSearches for “Transgender” up 350% in three years

0.000%

0.002%

0.004%

0.006%

0.008%

0.010%

Transgender-related online search trendMay 5, 2012 – May 30, 2015


Transgender interestDisruptive events

June 3, 2013

June 24, 2013


Transgender interestDisruptive events

March 7, 2015

March 19, 2015

April 24, 2015


Transgender interestSearch variations 12 weeks ending May 30, 2015


What’s Next?First transgender male on Men’s Health?

Aydian Dowling

?

• As more people come out and the LGBT ally community grows, marketers can more overtly feature LGBT individuals and family in their campaigns.

• Gay and lesbian adults are more likely to live alone than straight and bisexuals. Keep this in mind when targeting products for hhs of one.

• Marriage rates are skyrocketing and 500,000 LGBT adults are planning to marry in the next year. Beyond wedding services, marriage is also a major life event that can trigger other purchases.

• A third of LGBT adults are parents and half of those are raising kids. Parents are common in ads targeting LGBT consumers giving marketers a new way to engage the community, even those who are not parents.

• While LGBT incomes lag behind those of straight adults, partnered gay men have the highest household and per capita incomes.

• Attitudinally, the general market is following LGBT consumers. Marketing to these mindsets will prepare you for tomorrow’s general market norm.

• Transgender men and women are enjoying a moment in the spotlight which will almost certainly lead to greater awareness and acceptance.

Take-aways

4747

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