Apr 25, 2008 2:48 PM GMT
For a recent class project I decided to do an in-depth investigation of pink money from a perspective of buying power from the gay community. What I found was shocking and raised some interesting questions that I though I might share. Please read.
Firstly, what is "pink money"?
-The term describes the purchasing power of the gay community. It is, in effect, the post-tax discernable income that individuals have to spend. And as of late, it is becoming highly sought after by large companies and marketing firms. No longer considered a narrow niche, corporate America is waking up to the enormous opportunity of marketing to gays and lesbians.
Don't gay people have more money than their straight counterparts?
- Yes and no. According to the 2000 census gay men actually make less money than their straight counterparts. Gay men in same-sex couples had an average income of $48,960 vs. married men $56,368.
Lesbians in same-sex couples had an average income of $40,025 vs. married women $28,748. But, gay men are obviously less likely to have children (though actually 22.5% of couples do) allowing them even more disposable income. Gays and lesbians are also more likely to have a college degree. Also, same-sex households are more likely to have both individuals working compared to married households (2x income).
Advertising:
- 2005 showed about 175 of Fortune 500 brands were advertised in gay media resulting in more that $212 million in revenue for community media.
And here come the big numbers:
- Gay/Lesbian buying power was:
- $610 billion in 2005. (6.7% of total for US).
- $641 billion in 2006.
- $835 billion estimated by 2011.
- $1 trillion estimated by 2012.
WOW!
So what's the problem?
- Do you think it's actually a good thing that the gay community is being sought after as a marketable source? Are we nothing more than huge dollar signs to businesses? Do they actually support gay rights/causes or are they just trying to tap another market? And, are business sectionalizing the community and actually creating more seperation from the larger "straight" economy by advertising and marketing for gay-only products and services? Isn't the final goal of the gay rights movement to be complete equals and not have "seperate, but equal" status?
Discuss.
Firstly, what is "pink money"?
-The term describes the purchasing power of the gay community. It is, in effect, the post-tax discernable income that individuals have to spend. And as of late, it is becoming highly sought after by large companies and marketing firms. No longer considered a narrow niche, corporate America is waking up to the enormous opportunity of marketing to gays and lesbians.
Don't gay people have more money than their straight counterparts?
- Yes and no. According to the 2000 census gay men actually make less money than their straight counterparts. Gay men in same-sex couples had an average income of $48,960 vs. married men $56,368.
Lesbians in same-sex couples had an average income of $40,025 vs. married women $28,748. But, gay men are obviously less likely to have children (though actually 22.5% of couples do) allowing them even more disposable income. Gays and lesbians are also more likely to have a college degree. Also, same-sex households are more likely to have both individuals working compared to married households (2x income).
Advertising:
- 2005 showed about 175 of Fortune 500 brands were advertised in gay media resulting in more that $212 million in revenue for community media.
And here come the big numbers:
- Gay/Lesbian buying power was:
- $610 billion in 2005. (6.7% of total for US).
- $641 billion in 2006.
- $835 billion estimated by 2011.
- $1 trillion estimated by 2012.
WOW!
So what's the problem?
- Do you think it's actually a good thing that the gay community is being sought after as a marketable source? Are we nothing more than huge dollar signs to businesses? Do they actually support gay rights/causes or are they just trying to tap another market? And, are business sectionalizing the community and actually creating more seperation from the larger "straight" economy by advertising and marketing for gay-only products and services? Isn't the final goal of the gay rights movement to be complete equals and not have "seperate, but equal" status?
Discuss.
