McKinsey's fourth report in its series on the business case for diversity reinforces the idea that companies that invest in diversity, equity, and inclusion (DEI) initiatives are more likely to outperform those that do not. Integrating DEI into the DNA of an organization is not only socially responsible but also a sound business strategy. Companies that prioritize DEI in their decision-making are better positioned to foster an inclusive and dynamic culture that attracts and retains diverse talent, anticipates emerging trends, and connects with broader audiences.

The development of a corporate DEI strategy is essential for guiding these efforts. Such strategies typically involve both overarching themes that apply to the entire organization and specific plans tailored to the needs of individual departments. This dual approach ensures consistency while allowing for flexibility, enabling teams to address their unique challenges effectively.

To be effective, however, companies must approach DEI with the same level of detail and analysis as other business functions. This includes understanding the connections between DEI initiatives and business outcomes, which helps make the case for DEI as a driver of innovation and growth rather than just checking the boxes.

Integrating DEI in some industries, like the arts and publishing, is sometimes easier said than done, and the recent backlash against DEI in the business landscape is taking a toll. In response, some companies are doubling down on their DEI efforts, while others are pulling back. Yet, for those willing to endure the scrutiny, committing to DEI as a business practice can be highly rewarding. It reaffirms a commitment to people and community and organically strengthens the bottom line as consumers and employees are drawn to companies that align with their values.

In this episode of The New Mainstream podcast, Kimberly Ayers Shariff, Executive Vice President of Strategy for Diversity, Equity & Inclusion at Penguin Random House, makes the business case for DEI as a long-term strategic imperative.

Despite gaining significant momentum in 2020 following a surge in social justice awareness, diversity, equity and inclusion (DEI) has faced recent backlash. Yet, inclusive marketing remains essential for businesses seeking long-term success.

Inclusive marketing is not just about representation. It is a strategic approach designed to build deep connections with diverse audiences, celebrating diversity at every customer touchpoint. This can only be achieved by understanding these communities, inviting them to share their lived experiences and cultures, and using those insights to inform the creative process. Market research, such as focus groups, online surveys, and direct engagement with current customers, is critical to transforming data points into actionable insights that drive effective and inclusive marketing strategies that enhance ad relevance and cultivate brand loyalty.

Inclusive marketing cannot exist in a silo, however. And it’s about more than just doing the right thing or making people feel good. It’s also a powerful driver of business growth. Companies that execute inclusive marketing well enjoy a competitive advantage because they have embedded it across the entire organization, from talent acquisition to product development and launch.

Data and business growth strategies support the effectiveness of inclusive marketing. Courageous companies that prioritize DEI, even amid challenges, often discover new market opportunities, drive innovation and establish themselves as responsible corporate citizens.

In this episode of The New Mainstream podcast, Devoreaux Walton, MBA, a Brand & Marketing Senior Consultant at revelant and host of The Inclusive Consumer podcast, discusses the relevance of inclusive marketing in today’s complex business landscape.

About Devoreaux Walton

Devoreaux Walton (pronouns: she/ her) is a consultant, thought leader, and speaker who is the Founder and Managing Partner of revelant, a boutique management consulting firm specializing in business, marketing, and human resources solutions.
She delights clients with branding, marketing, small business planning and strategy, personal branding, employer branding, and diversity, equity, inclusion, and belonging solutions. Walton’s motivation to serve clients is based on her fundamental belief that small businesses are a critical part of a thriving economy within the global landscape. Walton specializes in helping brands successfully navigate change, including brand development, brand strategy, brand launch, rebranding, and brand expansion through growth. 

To teach how inclusive marketing is a competitive advantage for brands, Walton founded and hosts The Inclusive Consumer Podcast, a podcast highlighting thought leadership at the intersection of marketing, branding, strategy, and inclusion. The podcast is available on YouTube and Spotify for global listeners to tune in.

Prior to launching revelant and The Inclusive Consumer Podcast, for over a decade Walton enjoyed climbing the corporate ladder at marketing agencies, Google, and IBM while freelance consulting with small businesses and nonprofits across various industries.

While popular demand-side platforms (DSPs) like Google DV360, Xandr, and The Trade Desk offer powerful tools for reaching vast target audiences programmatically, digital media buyers for Fortune 500 companies face a more profound challenge: effectively spending the massive budgets allocated to them, especially when it comes to reaching diverse audiences. 

While diversity, equity, and inclusion seem to have fallen out of favor in some areas, DEI continues to thrive in others. Consumers are still very interested in engaging with brands that align with their values and show that support, or lack thereof, with their wallets. Future-focused brands see engaging with diverse audiences as a moral duty and sound business strategy for growth. However, achieving this in the digital realm can be difficult, particularly when traditional demographic targeting methods fall short. 

That's where an inclusive perspective on programmatic advertising becomes essential. It's not just about casting a wider net but leveraging insights into cultural nuances, behavioral patterns, and consumer preferences to reach diverse audiences with content they want to see. Doing so eliminates the need to create fictitious audiences or use identifiers subject to restrictions, which are common tactics on DSPs today. 

One key aspect to consider is the concept of zero-party data. Unlike third-party data, which can be unreliable and plagued with privacy concerns, consumers willingly provide zero-party data. It's the information they consciously share with brands because they see value in doing so. Since consumers are self-reporting across a range of classifications and categories, the insights can enrich programmatic strategies, improving campaign performance and ROI. 

Most DSPs, however, lack native capabilities to offer zero-party data to programmatic advertisers. By partnering with third-party providers specializing in zero-party data solutions, digital media buyers can segment their audience based not just on traditional demographics but on cultural affinities, language preferences, and even heritage. This unprecedented granularity unlocks a wealth of insights that enable media buyers to reach diverse audiences more effectively. 

Effective targeting is just one piece of the puzzle. Equally important is crafting messaging that resonates authentically with diverse audiences. This requires a deep understanding of cultural nuances and sensitivities and a commitment to representation and inclusivity in your creative approach. Achieving this demands C-level buy-in and a commitment to inclusion as a core pillar of the company's digital advertising strategy, positioning the brand to enhance its effectiveness in an increasingly multicultural marketplace. 

In closing, big-picture thinking, ingenuity, and an inclusive perspective on programmatic advertising are value-adds to digital media buyers responsible for managing ad budgets for some of the world’s largest brands. Central to this approach is embracing the potential of zero-party data and forging partnerships with innovative third-party providers. Doing so opens doors to new avenues for engaging diverse audiences in a genuine and impactful manner.  

This blog post was originally published on MediaPost.

Diversity isn't just about optics. Today’s consumers prioritize authenticity and base their purchase decisions on how brands show up. But authenticity does not start when the products hit the shelf. It must be woven into every stage of the go-to-market strategy, including market research – from panel recruitment and survey design to selecting moderators who foster open and honest conversations. Understanding diverse consumer perspectives requires more than just surface-level representation.

One crucial aspect of fostering authenticity in market research is the composition of research teams. Selecting moderators, for example, that reflect the demographics of the survey participants helps ensure authenticity in their responses. The psychological safety that the environment presents reduces the need for codeswitching, liberating respondents to be their authentic selves.

Beyond focus groups, greater diversity is needed across the market research industry. Often, diverse teammates doing the work—running the data tables and visualizing the data—aren’t the ones presenting the work, and that needs to change. There’s value in bringing those in the back of the house to the front to create equal opportunity for advancement. 

By prioritizing inclusivity and authenticity internally, companies can forge deeper connections with consumers externally and drive meaningful change in the marketplace.

In this episode of The New Mainstream podcast, Kai Fuentes, President and CEO of Ebony Marketing Systems, discusses how the market research industry can benefit from intentionally cultivating and championing diversity and inclusion.

Today's consumers are confidently embracing their authentic identities, and forward-thinking brands are following suit. Inclusive beauty giants like Ulta Beauty proudly defy gender norms, while others prominently feature same-sex couples and individuals with disabilities and promote body positivity in their advertising campaigns. On the flip side, some brands are succumbing to the fear of appearing overly “woke.” The increasing backlash against diversity, equity and inclusion has prompted a few to backtrack on commitments made during the peak of social unrest in 2020, leaving consumers feeling angered and confused.

Multicultural consumers, who represent almost 100% of the population growth in the U.S. and are on track to become the majority by 2050, seek genuine connections with brands. Central to this is a brand's ability to authentically understand its audience and allow that authenticity to drive consumer engagement.

Brands that bridge cultural divides are the ones that thrive. By genuinely connecting cross-culturally, companies seamlessly align DEI with their bottom line. Inclusivity isn't optional – it's the fuel for long-term success. From diverse workforces to inclusive marketing campaigns, a focus on inclusion strengthens every aspect of a brand.

Understanding multicultural consumers means appreciating their commitment to holistic well-being. Black women prioritize mental health, while Gen Z seeks a shift from the “grind” to self-care and mindful living. Brands that tap into these trends resonate with a broader audience.

In this episode of The New Mainstream podcast, Will Campbell, Co-founder and CEO of Quantasy, shares his perspective on the state of multicultural marketing and how young, diverse generations are driving wellness trends.

The past year has been a roller coaster ride for multicultural marketing practitioners. From the recent Supreme Court ruling on affirmative action to increased scrutiny of diversity, equity and inclusion (DEI) initiatives, companies are carefully assessing how these factors will impact their multicultural marketing budgets. ThinkNow shares this curiosity and has recently surveyed corporate decision-makers in multicultural marketing and multicultural consumer research, aiming to understand how they are strategically navigating the current landscape.

Download the report here.

The short answer? Budgets are increasing.

Multicultural marketing budgets are on the rise. Two-thirds of respondents plan to maintain or increase their multicultural marketing budgets in 2024. The driving force? Opportunity. Recognizing the economic power of diverse consumers and demographic shifts, companies see multicultural marketing as a key growth strategy.

Among the reasons cited by the 31% of respondents who plan to increase their budgets are identifying new business opportunities, acknowledging cultural influence on their business, and a desire to better represent and impact diverse audiences.

• “Audience business opportunity, cultural influence, growing audience representation and impact.”
• “More budget available to multicultural marketing. Hispanic has historically been a priority. We're on the journey to increase focus with African-American and other cohorts.”
• “Growing diverse consumer impact on business and sales.”

Additionally, respondents highlighted the importance of staying ahead of cultural trends and consumer behaviors to remain relevant and effective in their marketing efforts. This includes understanding the nuances of different cultural identities and tailoring messaging and campaigns accordingly. Companies recognize that cultural relevance is not only a matter of inclusivity but also a strategic imperative for engaging and retaining diverse consumer segments.

Interestingly, nearly 40% of respondents intend to maintain their 2023 budgets, indicating a continued commitment to multicultural marketing. This demonstrates a continued recognition of the economic significance of multicultural consumers and the importance of targeting this segment effectively.

Challenges and Cautiousness

However, amidst the optimism surrounding budget increases, there are challenges and instances of caution. Eighteen percent of multicultural marketing decision-makers plan to decrease budgets, citing general cost-cutting measures and clients shifting towards broader "general population" strategies. Among the reasons given by the minority who stated they’re reducing their budgets were:

• “Budget cuts across multicultural marketing efforts and an increased desire from clients to hit 'wider' audiences; e.g., Gen Pop.”
• “Less clients trying to target multicultural clients.”
• “Lower post-COVID budgets.”

Moreover, there is a growing emphasis on accountability and measurement in multicultural marketing efforts. Companies are increasingly leveraging data and analytics to evaluate the effectiveness of their campaigns and ensure they are resonating with diverse audiences. This includes monitoring key performance indicators such as brand awareness, consumer engagement, and sales lift among multicultural segments.

Adapting Multicultural Marketing Strategies

Still, 1 in 4 companies are adapting their approach. The cost of “getting it wrong” has increased in recent years. No one wants to be in the position Budweiser was in after boycotts erupted in response to their partnership with a trans influencer. In response, some companies are taking a more cautious approach, while others are conducting more research before launching new campaigns.

Key Takeaways:

• Multicultural marketing remains a strategic priority for many companies.
• The economic power of diverse consumers is driving budget increases.
• Uncertainty and cost-cutting pressures are impacting some budgets.
• Companies are adapting their strategies to navigate the changing landscape.

What does this mean for the future? While challenges exist, the prevailing sentiment among many practitioners is that multicultural marketing represents a pivotal avenue for growth. Companies adept at strategically maneuvering through these changes and placing a premium on comprehending diverse consumer demographics will undoubtedly find themselves poised for success.

As Women's History Month approaches each year, the remarkable strides women have made in business become increasingly clear. However, despite these advancements, certain industries, such as the insights industry, continue to struggle with leadership inequities and a lack of workforce diversity.

While the insights industry prides itself on understanding and reflecting diversity in consumer populations, this awareness often stops short within its own workforce. This creates a troubling gap: the voices informing strategies may be representative, but the decision-makers interpreting and implementing those insights remain predominantly homogenous.

This lack of diversity leads to blind spots and missed opportunities, potentially limiting strategy effectiveness and perpetuating biases. Closing the gap between measured and internal diversity unlocks the full potential of insights, creating more opportunities across the board.

In this episode of The New Mainstream podcast, Ali Henriques, Global Director of Research Services at Qualtrics, delves deeper into leadership diversity and its impact on recruiting and retaining diverse talent.