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Why Diverse Advertising Matters for Your Revenue


Only those living under a rock could have failed to notice how vital diversity in advertising has become. Audiences, especially young ones, have been crying out against injustices for years and continue to push for more inclusion. Adobe befound that 62% of their study respondents judge a brand’s products and services by their diversity or the lack thereof.

On top of this, over half of their LGBTQ and African-American respondents and 30% of their Hispanic respondents have walked away from brands failing to represent them in their marketing.

Diversity matters, and not only because it’s the right thing to do. The best marketing agencies in London have long acknowledged that being more inclusive in your advertising could secure you greater revenue. In this article, we’ll explore the relationship between diversity and profits.

Diversity Increases Revenue

Audiences care about diversity, and they care about what your brand stands for. If your buyers notice that you represent a value they share with you, they are much more likely to be loyal to you and come back for more in the future.

A study by Google found that 64% of people took some sort of action, including purchases, after they saw an ad that they considered inclusive and diverse.

But diversity doesn’t only improve brand perception and loyalty. By being more inclusive in your product design and advertising, you might unlock a whole new audience group with more spending power. For example, Fenty Beauty, a cosmetics brand, launched 40 shades of foundation for people of all complexions back in 2017 and quickly saw $73 million in media value.

The truth is that there is still untapped potential in diverse markets. Niche, diverse audience groups have gone excluded for so long that products don’t cater fully to their needs in many markets. Your brand can expand to these target audiences to win more customers.

The Spending Power of Diverse Audience

Just because minority groups might make up a smaller portion of your overall audience doesn’t mean they can’t contribute to your revenue in a big way. For example, African Americans will reach a spending power of over $1.8 trillion in America alone by 2024. The LGBTQ+ community has already assembled over $3.7 trillion in purchasing power. 

These promising numbers are further exacerbated in specific industries. Did you know, for example, that African-American women spend 9x more on beauty and grooming products than white women?

Diversifying Without the Extra Budget

Some brands struggle to diversify their ads because they only have a limited budget to work with their creative agency in London. In that case, however, it’s simply time to find creative solutions.

It doesn’t take a great deal more money to create diverse campaigns. The best marketing agencies in London will be able to advise you on how to create more inclusive ads without impacting your profits negatively or shelling out more investments.

For example, you can source diverse content from your existing community. Then, feature diverse content creators, customers and employees to be more inclusive. You can also consider switching your usual cast in your next advertising campaign for a more diverse one. Your established audience will stick around regardless and may actually like you better for being more inclusive.

ZAK agency is a creative agency in London that focuses on inclusive marketing campaigns and diversity. We work with innovative brands that want to make a difference and aren’t afraid to change things. Get in touch with us to talk to us about your next project.