It began with a crucial question: Why do some brands succeed in authentically connecting with their audiences while others struggle? As a data practitioner, I’m driven to uncover the stories that numbers can reveal, and when I delved into the potential of diverse audiences, the story was very compelling.
In the U.S. market alone, diverse communities today wield more than $6 trillion in purchasing power. This number will only continue to grow, as younger generations, Gen Z and Gen Alpha, predominantly identify as diverse. In the UK, 84 percent of consumers say that “it’s important for brands to promote diversity and inclusion.” Our own research has shown that these audiences engage 50 percent faster and show 10 percent higher engagement with brands that use channels, language, and messaging relevant to them and their wider communities.
Perhaps due to a lack of available data, marketing practitioners may be reluctant to engage in thoughtful conversations about inclusivity, leaving CMOs with one-size-fits-all strategies.
However, traditional industry tools still fall short in identifying and engaging with diverse communities, limiting ads’ effectiveness as well as brands’ long-term growth prospects. Perhaps due to a lack of available data, marketing practitioners may be reluctant to engage in thoughtful conversations about inclusivity, leaving CMOs with one-size-fits-all strategies. Our approach bridges this gap by leveraging advanced analytics, AI, and behavioral data science to provide marketers with deeper insights.
Take, for example, our work with a leading UK beauty and self-care brand. We identified the 50+ age cohort as an underrepresented audience with significant growth potential. Through our platform simulation, we projected that increasing engagement with this group by just one percent could add an estimated £5 billion in value by 2031, culminating in a total projected sum of £35 billion by 2061. This finding prompted our client to make this new cohort a core part of their business strategy.
This success story spurred us to explore further. In the U.S., we looked into two very different industries: jewelry and drinks. The data showed that underrepresented groups accounted for over 60 percent of total spending in the jewelry market, a figure expected to rise to 63 percent within the next five years. In the drinks market, alcoholic beverages were gaining traction among younger, higher-earning consumers, while non-alcoholic drinks and water saw 30 percent more growth in underrepresented markets compared to the average. These findings underscored the vast, untapped potential within these diverse audiences.
Additionally, our award-winning research detailed in the Consumer Equality Equation (CEE) report highlights the transformative potential of inclusive strategies in the UK. The report revealed that the disposable income of overlooked populations from 2021 to 2061 amounts to an astounding £16.7 trillion. By shifting the purchase habits of just one percent of this demographic, brands could unlock an additional £107 billion in value through 2061. This underscores the immense growth opportunities that inclusivity can bring to the market.
By shifting the purchase habits of just one percent of this demographic, brands could unlock an additional £107 billion in value through 2061.
Targeting the Future
Investing in and engaging with diverse communities is not just a strategic opportunity—it’s essential for future business growth. By applying a data-driven, human-centric approach, brands can navigate the complexities of a rapidly evolving market landscape and position themselves for sustained success.
For CMOs, the challenge is to transform these insights into strategies that resonate with diverse audiences and drive lasting growth. And as a data practitioner, I am incredibly excited about the potential data has today to finally bring inclusivity to advertising, at scale.
- 42% of the US population and 15% of the UK population self-identify as “diverse.” Source: Choreograph proprietary research
- Choreograph proprietary research
- WPP Consumer Equality Equation research study
- Choreograph proprietary research
