Online business discovers pink purchasing power

STaN

They are the internet marketer's dream. As a group, they spend nearly 10 times as much time online as the average user - 25hours a week compared to 11 hours a month. They are among the most tech savvy of all consumers, and are far more likely to buy new electronics when they come out than most other consumer groups.

For men and women, they have higher incomes and are better educated than any other consumer group online. And they show strong loyalty to organisations that target them - whether or not services are specialised to niche tastes.

The group? Gays and lesbians. If you're talking about the colour of money, a series of recent studies and research reports show the pink euro/pound/dollar is the currency of choice online.

"Gay men and women have the technology attitudes and demographics that marketers dream about. Gays are among the first to adopt new devices and online tools, making them prime targets for digital marketing as well as emerging technologies," stages a recent Forrester Research study.

Though the numbers may seem small, with only 5 per cent of men and 2 per cent of women stating they preferred same-sex partners in a recent survey of US households by Forrester Research (another 20 per cent declined to answer the question), an estimated 17 million Americans are homosexual and their collective buying power is reckoned at $464billion (€428.9billion) - outstripping US Asians or Hispanics and, in per capita terms, well ahead of all US minority Groups.

They Gay/Lesbian Consumer Online Census (GLCensus), an OpusComm group and Syracuse University research partnership, found nearly 21 per cent of male respondents and 17 per cent of female respondents in their 2002 survey reported a household income of $100,000 or more.

"Two things also mitigate against this market being 'small'. The first is gay and lesbian buying power, and the second is that this is fairly identifiable audience. There are clear websites that people go to target them," says Forrester analyst Mr Jed Kolko, author of the July study.

It’s a niche market that isn't very niche. Consider that the number one American website to reach single men with household incomes of over $75,000 is - no, not CNN sports, but Gay.com, according to research by @plan.

Those kinds of demographic have made gays and lesbians the target of campaigns by big name firms online, not just those which offer gay-specific services or products. Gay.com pulls in big name advertisers like American Airlines, Viacom, Procter & Gamble, BMG Entertainment, General Motors, Merck, US Airways, Chase and IBM. Gay.co.uk has snapped up Debenhams, Visa, Sainsbury's, Amex Insurance and AOL.

Research shows gays and lesbians are among the most company and bran-loyal of consumers as well, responding to firms that advertise in gay publications and websites. A gay-specific approach has made firms like American Express and Absolut the leading brands with gays and lesbians. Overall, gays and lesbians are 87 per cent more likely to give their custom to firms that target them specifically.

Mr Kolko's research shows gays and lesbians are more likely to be university graduates, to be online, to have broadband net connections, to shop online, to bank online and to book travel online. They are more likely to own almost every type of digital device or gadget than heterosexuals, excluding camcorders and video game consoles. And, they are more likely than straight people to join in every conceivable type of online activity from dating to downloading music, using instant messaging, reading newspapers online and sending e-greeting cards. The only things they don't do in greater numbers are visit sports sites and play games alone.

As a result, PlanetOut Partners, the parent company of Gay.com, has adopted an aggressive marketing approach to go after advertisers. "The average middle class family spends over $1million to raise a child through age 22. Some gay people have kids. Most don't. Where are they spending that money? On your products and services," says one advertiser's pitch on its corporate website.

Advertisers are clearly biting. The firm startled many in the struggling online publications world recently when it said it had gone into the black based on revenues its cluster of online sites pulls in. These include Out & About Travel, PlanetOut.com, eight international sites for Gay.com, and a shopping site targeting gays and lesbians, Klepmaniacs.com (the name comes from a comment by conservative former US senator Trent Lott, that homosexuals were sick and should receive medical treatment just like alcoholics or kleptomaniacs).

Dublin-based Gay community News hopes it can wield some of that advertiser draw in the Irish market. Its website, which gets 3000 hits a month, was revamped into a more interactive format recently after GCN relaunched in a glossy magazine format, says GCN manager Ms Marie Mulholland.

“Even with the constricted website that we had, we were getting 400-500 gits a week, and we knew there was something to respond to,” she says.

Online advertisers already include an Irish travel firm and bookstore, but GCN believes it offers and attractive audience for British firms too, and is looking at potential advertisers.

Not-for-profit community sites like Outhouse.ie – the online presence for Dublin-based gay, lesbian, bisexual and transgender community centre Outhouse – and GayCork.com, a news, discussion and small advertisers site, says the internet is an important resource for gays and lesbians.

“So much about this particular community goes through the Web,” says Outhouse manager Ms Louise Tierney. People use it to get information, to meet others, to buy products with and anonymity and sense of like mindedness that is often unavailable in the “real world”, she days. She notes that Outhouse provides PCs and internet access for Irish people without the high incomes touted in the studies.

Mr Kolko believes this is why so many gays and lesbians are online. For them, the web is transformative. “The fact that the virtual [gay] community is so strong suggests it has changed experience of being gay,” he says. IT also has changed the attitudes of many mainstream firms once cautions about advertising in gay and lesbian publications. It might be a good idea for them to think seriously about viewing the online world though rose-tinted glasses.

ixoy

Interesting I guess, although I'm not quite on that $100,000 wage they suggest!!
It sounds like they're threatening us with a load of pop-up ads, so it's time to get ad blockers... Hello Google Toolbar!!

STaN

Its good news for publications like FREE! Magazine (ugh) and Queer talk.

Hopefully these will grow in readership, and advertising revenues and then use that to increase market share.

ixoy

Originally posted by STaN
Its good news for publications like FREE! Magazine (ugh) and Queer talk.

Hopefully these will grow in readership, and advertising revenues and then use that to increase market share.

Yeah but do you really want the market for FREE! to grow

Annasopra

Debatable!!!!!!