It’s a balancing act for brands that want to champion inclusivity—authentically and meaningfully, without stirring controversy. “It’s really important for advertising to reflect the world in which we live. Displaying it creates a sense of acceptance,” our analyst Paola Flores-Marquez said on the “Behind the Numbers: Reimagining Retail” podcast. But brands can hurt people by getting it wrong, she added.

The risk: Brands often become “paralyzed” into taking the safest possible approach, and avoid getting involved in social issues altogether, our analyst Daniel Konstantinovic said. However, that means brands miss the opportunity to reach like-minded consumers, including the 58% of US adults who believe companies should be able to express how they feel on a topic, according to April 2024 data by YouGov.

Bud Light is still feeling the impact of a boycott more than a year after its 2023 Pride campaign. An ad, which featured transgender influencer Dylan Mulvaney, angered many of the brand’s right-wing consumers. Bud Light’s case negatively impacted sales for a longer stretch of time because many of their consumers associate the brand with their identity, according to a March 2024 article by the Harvard Business Review.

Bud Light’s lack of solidarity with Mulvaney during the backlash sparked criticism from the LGBTQ+ community. “Brands have a tough line to walk because consumers do tend to view brands as inherently inauthentic,” our Konstantinovic said. Consumers are wary of brands that are “rainbow-washing” by slapping Pride symbols on products with the only purpose of sales, without caring about the community or the cause.

The reward: Brands that show their genuine support for the LGBTQ+ movement not only benefit by engaging those who identify as queer, but also their allies too. “We really cannot underestimate the power of allyship in the gay community—it is small, but the number of allies they have is immense,” Flores-Marquez said.

More than half (55%) of non-LGBTQ+ adults said they would start using or buy more from a brand that showed their support of LGBTQ+ issues, according to July 2023 data by Collage Group.

In addition, US marketers believe the potential benefits of LGBTQ+ inclusive marketing include increased brand loyalty (83%), greater word-of-mouth (79%), and stronger brand recall (76%), according to a September 2023 survey from the Association of National Advertisers (ANA).

The right approach:

• Support should be unwavering: “If brands are going to take a stance, they have to commit to it,” Flores-Marquez said. If they show their support for the LGBTQ+ community and then withdraw it, it makes them look cowardly.
• Keep the activism lights on: “What makes [activism] seem inauthentic is when brands only pay lip service to it once a year,” Flores-Marquez said. The key to building credibility in marginalized spaces is to appeal to those audiences all year round, then developing a special campaign around its dedicated day or month, such as Pride Month.
• Inclusivity starts at the hiring level: Be sure to involve LGBTQ+ employees when high-level decisions are being made, Konstantinovic said. Four in 10 US LGBTQ+ adults feel as though Pride ads are insincere because the company’s internal actions don’t align, according to the Collage Group.

The big picture: “Brands do have a role to play in culture,” Konstantinovic said. “Prominently featuring Pride Month merchandise or marketing does help normalize the acceptance of queer people in society. The same is true for running campaigns around other holidays that represent a minority group.”

Listen to the full episode.

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