Businesses should not ignore the power of the pink pound. With a UK purchasing power of around £6 billion every year, now more than ever is time for business owners to be capitalising on this and focussing on efforts to target this market. However, there are without doubt some challenges that arise in this space when it comes to smaller businesses with lesser budgets.
The number of people who identify as LGBT (lesbian, gay, bisexual or transgender) is on the increase and has consistently increased over the past decade. People feel now, more than ever, able to be themselves. However, the pink pound isn't just about appealing to a more diverse audience. It's about being strategic in appealing to an audience with a higher than average disposable income, a highly trend-conscious audience and perhaps most importantly of all, a growing audience.
We can see examples of brands that have maximised on this trend with Tiffany & Co Doritos, Absolut Vodka, Lloyds TSB and Calvin Klein, who have made the decision to include gay couples in their advertising campaigns. This does undoubtedly help to reach the Pink Pound in advocating appreciation of the LGBT customer and promoting diversity and equality. However, the bigger picture involves campaign placement and ensuring that your marketing campaigns, if you have them, are being shared in relevant places. Where are you advertising, and who are you engaging? Is your message reaching the LGBT consumer?
Now, having an advertising campaign with same-sex couples isn't always easy. If you're a smaller company that doesn't do a lot of marketing then you probably can't afford to setup a separate campaign focused on the LGBT community, let's be realistic, it's likely to be a smaller segment than your primary market. So, you're left with working out the most effective places to advertise your campaign that will reach the pink pound. Unfortunately, that's a bit of a problem for a lot of companies. There are many pretty substantial apps out there for LGBT dating. One factor to consider though might be brand reputation.
Some of these apps on the market are focused around hook-ups and instant gratification, rather than more serious dating. The idea of putting your advertising campaign next to a topless dating profile might not be right for your brand. However, it isn't your only option. There are news websites and apps focused on covering LGBT stories, there are more serious dating websites out there and there are also options to target your campaigns through social media and other channels too. It's worth doing; a market with the purchasing power that this market has, shouldn't be ignored.
Part of the offering I'm hoping to build for businesses with new gay lifestyle club, The Omyx Club, is the ability to target a more discerning gay male market with the safety that your brand reputation will stay in tacked and the reassurance that you're reaching an influential market with a larger than average disposable income.