Inclusive advertising boosts sales & increases brand loyalty, new study finds

Though conservatives often accuse companies of losing out when a brand touts progressive values, the right-wing adage “go woke, and go broke,” has been disproven by a recent study.

Brands that are supportive of LGBTQ+ rights or social justice movements see greater consumer engagement and loyalty from customers.

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 Unstereotype Alliance, a business initiative convened by UN Women, more inclusive advertising campaigns positively impact profits, sales and brand worth.

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Researchers at Saïd Business School at Oxford University analyzed data from Diageo, Kantar and Unilever, in collaboration with the Geena Davis Institute.

The research, based on an analysis of 392 brands across 58 countries, reveals that inclusive advertising can boost short-term sales by nearly 3.5% and drive long-term sales by over 16%.

The study spanned various product categories, including confectionery, snacks, personal care, beauty, pet food, pet care, alcohol, consumer healthcare, and household products across diverse regions.

Inclusive advertising also persuades 62% of consumers to choose a product and enhances brand loyalty for 15% of shoppers. The study highlights that ads that authentically portray people, without using stereotypes, have a clear competitive advantage in the marketplace, influencing consumer preferences and long-term success.

Sara Denby, head of the Unstereotype Alliance secretariat at UN Women, emphasized that the long-held belief that inclusive advertising could harm a business has hindered progress for too long. “This claim is consistently unfounded,” she said, “but we needed evidence to counter it. These undeniable findings should reassure any business and motivate brands to strengthen their commitment to inclusivity—not only to serve their communities but also to drive growth and boost profitability.”

Unstereotype Alliance was founded in 2017 and has 240 member companies. The organization seeks to end harmful stereotypes in advertising and has 12 national chapters across five continents.

In the effort to be more inclusive, some companies have majorly fumbled. Kendall Jenner and Pepsi were the subject of ridicule after an ad from the soda company showed Jenner solving a clash between protestors and the police by handing a cop a soda.

On the other side, the beer brand Bud Light also faced right-wing rage after partnering with trans influencer Dylan Mulvaney. After the incident,  Jason Warner, CEO of the European branch of Bud Light’s parent company, Anheuser-Busch InBev, said that the company would no longer attempt inclusivity and “stay in our lane.”

The study comes after right-wing influencer Robby Starbuck has forced multiple companies to cave by accusing them of having “woke agendas” and sending a social media mob after them. Starbuck succeeded in getting companies such as Lowe’s, John Deere, Harley Davidson, and more to drop their DEI initiatives, stop partnering with the Human Rights Campaign, and end sponsorship of Pride festivals. When fear of Starbuck caused Ford Motors to follow behind the other brands, President of the Human Rights Campaign, Kelley Robinson, called Starbuck a “MAGA bully and Republican-reject.”

It later released a study that details how rollbacks on DEI from large corporations in recent years are wildly unpopular with LGBTQ+ individuals and alienating many consumers. The latest research adds even more weight to that argument.

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