2024 has been the year of brands dropping their DEI (diversity, equity, and inclusion) initiatives. With big names like Harley-Davidson and Ford Motor Co. pulling away from DEI, the discussion around company inclusivity has never been more heated. But how does this affect DEI in marketing?
At the heart of DEI is a company culture that supports people of all backgrounds. Without dedicated efforts to foster a culture of inclusivity where diverse perspectives are encouraged and valued, the potential for innovation and creativity can be diminished.
As we continue to hear news of companies stepping back from DEI initiatives, this shift raises a crucial question. How does the absence of inclusivity behind the scenes shape how brands connect with diverse audiences?
To stay relevant and innovative, it’s more important than ever to examine why diverse representation in advertising matters, the undeniable business benefits of inclusivity, and the critical role cultural sensitivity plays in today’s marketing landscape. Let’s dive into these key areas and explore their impact.
Representation in Advertising: The Power to Shape Culture
Whether we like it or not, representation has a significant impact on our culture. According to research from Ipsos, 76% of people believe advertising affects the way we see each other, and 88% of women are comparing themselves to the bodies they see in the media. But it doesn’t stop there, as research reveals just how deeply a lack of representation can affect communities.
In a recent study, American consumers share how they perceive themselves regarding representation in advertising.
“When non-white consumers reported lower advertising inclusiveness, it predicted feeling less connected to American society, which itself predicted a decreased intention to purchase from mainstream brands. This effect was stronger among consumers from minority groups.”
— Psychology Today
Representation in advertising is not just a reflection of society but a powerful force that shapes cultural perceptions. When advertisers exclude underrepresented groups, even if it’s unintentional, they risk alienating these consumers.
Diversity Is Good Business: Here’s the Proof
Diversity in advertising isn’t just ethical. It’s essential for your business’s bottom line.
While the previous study mentioned how consumers from underrepresented groups are less likely to purchase a brand due to a lack of representation, the opposite is also true.
A survey of almost 3,000 U.S. consumers revealed that 69% of Black consumers were more likely to make a purchase from a brand and actively seek it out when advertising includes a positive representation of their race/ethnicity. A high level of authenticity brings a positive impact, as 71% of LGBTQ+ consumers also interacted with ads that represented them properly. 79% of Asian/Pacific Islander consumers and 85% of Latinx+ consumers also took action after witnessing an inclusive ad.
However, it’s not just a one-time purchase on the line here—it’s a brand’s entire reputation.
According to research from Kantar, 52% of consumers “trust a brand more if their ads reflect my culture.” Additionally, 40% of shoppers “would stop using brands that do not promote inclusion and diversity,” and the number gets higher for shoppers who identify as Black Americans or Hispanic Americans.
These consumers are extremely likely to stand by these values as well, with 62% of consumers judging brands based on their diversity, and 34% admitting to avoiding brands that do not represent their identity, and that only increases within specific racial/ethnic communities.
Including DEI in marketing strategies has a profound impact on business success. Brands that prioritize diversity not only increase their sales potential but also build long-term trust and loyalty, with many consumers choosing to align with companies that reflect their values and cultures.
Cultural Sensitivity: The Key to Authentic Marketing
A fundamental word from the previous section is “authenticity.” Unfortunately, cultural insensitivity is still ever-present within the advertising landscape. After analyzing the most-seen ads on YouTube from 2015 to 2019, the Geena Davis Institute shared startling discoveries.
While 40% of the characters within the ads were from underrepresented groups, many of these roles depicted harmful stereotypes. Only 6% of characters were Latinx, who were more likely to appear either partially nude (three times as likely) or in revealing clothing (twice as likely). Members of the disabled community were also few (2%) and “overwhelmingly white.” Black characters also face stereotypes as they were almost twice as likely to be featured in comedic roles.
Despite some progress, many ads continue to fall short, with underrepresented groups too often depicted in stereotypical or inappropriate ways. Addressing these issues with thoughtful, respectful representation can foster stronger connections with diverse audiences and avoid reinforcing damaging biases.
Embrace DEI to Lead the Future of Marketing
As companies reassess their diversity and equity commitments, it’s vital to recognize the role of DEI in marketing success. Embracing diversity isn’t just about doing what’s right—it’s a business imperative that drives loyalty, trust, and long-term growth. By authentically connecting with underrepresented communities and reflecting the richness of diverse cultures, brands have the unique opportunity to not only inspire change but lead the way into a more inclusive future. Now is the time to amplify diverse voices and create marketing that truly resonates with everyone.
