No-Kno

View Original

Representation in Marketing Is Timeless but Data Shows Evolving Audiences Make It Key

You've traveled through many galaxies, and your spacecraft crash-landed on Madison Avenue in New York City. The good news is, you're unhurt. The bad news is that you’ve been mistaken for the head of creative at an ad agency. With just three days until your big pitch and no marketing knowledge, you desperately turn to an episode of Mad Men. It quickly becomes clear: Effective advertising hinges on portraying your target audience accurately. In short, representation matters. It's remarkable that one of the oldest and most accepted principles in advertising is now facing challenges—not because the value of representation is in doubt, but because we lack the tools to manage it effectively.

Why It Matters

Showing relatable people in ads, vis-à-vis the target audience, significantly boosts the appeal and effectiveness of the brand, product or service.

IIt's Happening

The cities we live in and the places we work in are becoming more culturally and ethnically diverse (1). Additionally, 63% of consumers from underserved groups would buy from brands that make an effort to represent them (2). A more diverse world and heightened sensitivity to diversity are mutually reinforcing, making this an essential focus for modern marketers.

Insight Applied

50s ad showing representation of your target audience is not new

The concept of proper representation is pretty straightforward. If done correctly, it can result in a 216% higher CTR for ads featuring models of the same age and gender as the (target) audience, as opposed to a different age or gender(3).

Even though you've only watched one episode of Man Men so far, this makes sense. Back in 1960, they understood that if you sell a family car, you'll probably want to portray a family in your ads.

Fast forward to today, over 69% of LGBTQ+ consumers are more likely to try grocery or household items from brands that visibly support the LGBTQ+ community. The world has become enormously more diverse. Time to part ways with Mad Men and re-consider that marketing degree after all.

Instead

On the surface, the principle of proper representation seems evident. Below the surface, however, there are many complicated intricacies. Pepsi received backlash for trivializing social justice in its infamous Kylie Jenner ad in 2017. In hindsight, it seems blatant, even for extraterrestrials. There are, however, many more subtle examples of tokenism.

According to the Cambridge Dictionary, tokenism is something that a person or organization does that seems to support or help a group of people who are treated unfairly in society, such as giving a member of that group an important or public position, but which is not meant to make changes that would help that group of people in a lasting way.

Facts

In marketing, 81% of Gen Zers – the most diverse generation in history – and 72% of Millennials say that multicultural and diverse consumers greatly impact their brand choices(4).

In employer branding, 76% of job seekers consider diversity an important factor when evaluating potential employers(5).

Up Close

On a tactical level, brands should analyze their target audiences closely and reflect their diversity in every touchpoint — from TV commercials and print ads to social media content and customer service interactions. Not sure where to start? No-kno can help.

Birds Eye

From a strategic viewpoint, embracing diversity in advertising isn't just about meeting current trends; it's about ensuring long-term brand relevance and loyalty in a rapidly changing marketplace.

Prominent Voices

Madeline Di Nonno, president of the Geena Davis Institute, once said: "The way brands portray gender, race, sexual orientation, disabilities, age, and body type online can really influence how people perceive one another, as well as how they see themselves in society. And clearly, this matters to consumers."(6)

As A Result

Brands that successfully represent their diverse audiences in advertising strengthen their market position and foster deeper connections with their customers, leading to sustained growth and brand loyalty(7). Representation in marketing has always mattered. But in a more connected and diverse world than ever, it's essential. No-Kno’s diversity analytics platform can help you that.

sources:

  1. https://worldmigrationreport.iom.int/

  2. Inclusion’s Next Wave, Wunderman Thompson Intelligence / VML, 2022 https://www.vml.com/insight/inclusions-next-wave

  3. Multivariate Testing Confirms the Effect of Age and Gender Congruence on Click-Through Rates from Online Social Network Digital Advertisements. Higgins, Sean; Mulvenna, Maurice; Bond, RR et al. In: Cyberpsychology, Behavior, and Social Networking

  4. https://ir.directdigitalholdings.com/news-events/press-releases/detail/94/81-of-gen-zers-say-multiculturaldiverse-communities-greatly-shape-brand-preferences-according-to-direct-digital-holdings-research

  5. Glassdoor, Glassdoor’s Diversity and Inclusion Workplace Survey, USA, 2020

  6. https://www.adweek.com/partner-articles/underrepresentation-and-misrepresentation-have-no-place-in-advertising-today-insights-from-the-geena-davis-institutes-ceo/