“Go woke, go broke”. It’s the belief that organizations which support inclusive thinking and approaches will suffer commercially. And it’s categorically untrue.
That’s the finding from a pioneering study by the Unstereotype Alliance, an initiative led by UN Women, which we at Kantar are proud to have contributed towards.
Conducted with researchers from Saïd Business School at Oxford University, it analyzed 392 brands across 58 countries to empirically prove that inclusive advertising positively impacts business profit, sales, and brand value.
The impact of inclusive advertising
The research found that inclusive advertising (content which authentically and positively portrays a full range of people, including traditionally underrepresented or underserved communities, and is devoid of stereotypes) – leads to 3.5% higher short-term sales and 16.3% higher long-term sales.
Brand equity is also improved by inclusive advertising, with a strong multiplying effect across a range of different metrics. Brands whose advertising is more inclusive:
- Are perceived as 9.8% more meaningful by consumers. This is defined as being more relevant and important in people’s lives, resonating more deeply with their values and beliefs.
- Are viewed as 11.8% more ‘different’ from their competitors, giving them a competitive advantage in often crowded marketplaces.
- Enjoy 15% higher loyalty, with a 23% lower chance of being abandoned after a trial purchase.
- Are more likely to be considered, with a 62% higher likelihood of being a consumer’s first choice.
- Are valued more greatly by consumers, with the ability to command 54% higher pricing power.
Inclusive advertising is essential for driving sales and enhancing brand equity. What’s more, the short-term boost in sales proves the impact is immediate. The fact that this effect only intensifies over time means that organizations which commit to inclusive advertising now are future-proofing their brand.
The potential of inclusion
One in six people worldwide have some form of disability. More than one in 10 are over 65. Only 37 countries around the world recognize same-sex marriage. Yet the belief that inclusion doesn’t matter – or is even detrimental – still pervades modern marketing.
That’s despite the fact that nearly 80% of people around the world consider diversity, fairness, and inclusion when making a purchase, and one in four are discouraged by brands that fail to use inclusive advertising.
These are factors which are crucial to brand growth – even more so for millennials and Gen Z, whose growing buying power makes inclusivity even more critical for brands aiming to scale and reinforces the idea that brands failing to adopt inclusive advertising will, over time, face a commercial disadvantage.
Of course, whether a brand is already comfortable with inclusive advertising or it’s exploring it for the first time, getting it right requires curiosity, nuance and the ability to listen.
Making sure your brand is on the right track will maximize the growth that can be gained through inclusive advertising. We encourage brands to explore our Brand Inclusion Index, which provides a comprehensive view of how people perceive efforts to be progressive across all business functions, and gives a genuine and holistic understanding of how much equity brands are gaining through their progressive efforts.
There is plenty to give us hope each day that the world is becoming a more inclusion place. Yet equally, every month another brand announces that it is rowing back from diverse and inclusive practices, often intimidated by a social media mob. But social media does not accurately reflect consumer sentiment: our Brand Inclusion Index focuses on the views of the many, not the few, around what is fair, diverse and inclusive.
Inclusive advertising has now become a crucial foundation for building a successful brand. It’s important not to get left behind.
For more information, explore Kantar’s Brand Inclusion Index and download the Business Case for Inclusive Advertising.