Executive Summary

Introduction
• Background
• Overview Of Report

Scope And Methodology
• Scope Of Report
• Methodology

Demographics
• Gay And Lesbian Population Studies Have Limitations
• Self-Identification By Gays And Lesbians Is Increasing
• Gay And Lesbian Population Estimates Require Complex Set Of Assumptions
• Table 1-1: Projected Growth Of Total U.S. And Gay And Lesbian Population 18 Years Old And Over, 1999-2004
• Gay And Lesbian Population Is Disproportionately Non-Hispanic White
• Many Gay And Lesbian Households Are Domestic Partnerships
• Substantial Number Of Gay And Lesbian Households Include Children Under The Age Of 18
• Distribution Of Earnings Of Gay And Lesbian Population Same As Population As A Whole
• Table 1-2: Distribution Of Earnings Of Full-Time Workers: Gay People (1992-1996) Vs. All People (1998)
• Corporate Diversity Programs Expand Employment Opportunities
• Gay Political Influence Grows

The Market
• Gay And Lesbian Market Will Exceed $500 Billion In 2004
• Gays More Urban Than Population As A Whole
• Gay And Lesbian Market Is Highly Segmented
• Gay Families With Children Represent Growing Market
• Many Factors Affect Market Growth

Gay Men And Lesbians As Consumers
• Gay And Lesbian Consumers Loyal To Gay-Friendly Brands And Gay Media Advertisers
• Gay And Lesbian Consumer Decisions Affected By Value Structure
• Gay And Lesbian Consumers Have Distinct Expenditure Patterns
• Gays Spend More On Travel Than Mainstream Consumers
• Gays More Likely To Be Online
• Shopping Online Increases

Gay And Lesbian Media
• Circulation Of Some National Magazines Remains Flat As Local Publications Gain
• Gay Print Readers Tend To Be Male
• New Magazines Target Variety Of Niches In Gay And Lesbian Community
• Consolidation And Convergence Change The Landscape Of Gay Print Media
• Internet Opens New Horizons For Gay And Lesbian Radio
• Gay Television Outlets Remain Limited As Mainstream Broadcasters Begin To Acknowledge Gay Audience
• Web Portals Improve Access To Gay And Lesbian Market

Marketing To Gay Men And Lesbians
• Gay-Friendly Corporate Policies Critical Element Of Successful Marketing Strategy
• Comprehensive Marketing And Promotion Programs Include Community Involvement
• Three Schools Of Thought On Most Effective Advertising Styles More Products And Services Designed For Gay And Lesbian Consumers Internet Opens New Vistas For Marketing To Gays
• First-Time Advertisers Choose Online Presence

Examples Of Advertising Targeted To Gay Men And Lesbians
• Awareness Of Gay And Lesbian Issues
• Gay Pride Symbols
• Relationships
• Scenes From Everyday Life
• Breaking New Ground
• Living With Hiv

II. Demographics

Definition Of The Gay And Lesbian Market
• Basic Terms Defined
• Researchers See Sexual Orientation As Continuum
• Male Homosexuality Has Multiple Categories
• No Standard Definition Of "Lesbian"

Population Size And Growth
• Gay And Lesbian Population Studies Have Limitations
• Behavior Is Not The Sole Criterion
• Self-Identification Is The Most Appropriate Criterion For Estimating Gay And Lesbian Population Size
• Earlier Population Studies Showed Lower Rates Of Self-Identification
• Table 2-1: Overview Of Studies Of Prevalence Of Homosexuality, 1970-1994
• Later Studies Suggest Higher Percentages Of Self-Identified Gay Men And Lesbians
• Self-Identification By Gay Men And Lesbians Is Increasing
• Gay And Lesbian Population Estimates Require Complex Set Of Assumptions
• Self-Identification Rates Differ For Men And Women
• Gay And Lesbian Population Over 18 Years Of Age Estimated At 13 Million
• Gay And Lesbian Population Expected To Increase 13.3% By 2004
• Table 2-2: Projected Growth Of Total U.S. And Gay And Lesbian Population 18 Years Old And Over, 1999-2004

Ethnicity
• Gay Community Reflects Ethnic And Racial Diversity Of American Society
• Gay And Lesbian Population Affected By Broad Demographic Trends
• Gay And Lesbian Population Will Become Increasingly Diverse
• Table 2-3: Projected Ethnic Mix Of U.S. Gay And Lesbian Population 18 Years Old And Over Assuming Uniform Self-Identification Rates
• Figure 2-1: Population Growth Rates By Race And Hispanic Origin, 2000-2020
• Greater Stigma Within Minority Communities Inhibits Self-Identification
• New Federal Government Data Show That Ethnicity And Race Affect Self-Identification
• Self-Identified Gay And Lesbian Population Is Disproportionately Non-Hispanic White
• Table 2-4: Adjusted Estimates Of Ethnic Mix Of U.S. Gay And Lesbian Population 18 Years Old And Over

Household Structure
• Many Gay Men And Lesbians Live In Domestic Partnerships
• An Estimated 2.9 Million Gay And Lesbian Households Are Domestic Partnerships
• Table 2-5: Gay And Lesbian Households By Type Of Household
• Gay And Lesbian Households Will Total More Than 11 Million In 2004
• Table 2-6: Projected Growth In Number Of Gay Male Households: Single Vs. Domestic Partner, 1999-2004
• Table 2-7: Projected Growth In Number Of Lesbian Households: Single Vs. Domestic Partner, 1999-2004
• Table 2-8: Projected Growth In Number Of Gay And Lesbian Households: Single Vs. Domestic Partner, 1999-2004
• Vermont Extends Legal Rights To Gay Couples
• More Employers Offer Benefits To Same-Sex Domestic Partners
• Census 2000 Expected To Yield More Reliable Data On Gay Households
• Many Gay Men And Lesbians Are Parents
• Gay Families With Children Become More Prominent
• Legal Status Of Gay And Lesbian Parents Varies In Different States
• Lesbians Are As Likely As Heterosexual Women To Have Children At Home
• Lesbian Couples Create Baby Boomlet
• Substantial Number Of Gay And Lesbian Households Include Children Under The Age Of 18
• Table 2-9: Gay And Lesbian Households With Children
• Number Of Full-Time Gay Fathers May Decline

Economic Status
• Marketing Surveys Show High Incomes For Gay People
• Level Of Gay Affluence Debated
• Appropriate Perspective Required To Evaluate
• Income Data Income Studies Analyzed
• Discrimination And Age May Affect Earnings
• Distribution Of Earnings Of Gay And Lesbian Population Approximately The Same As Population As A Whole
• Table 2-10: Distribution Of Earnings Of Full-Time Workers: Gay People (1992-1996) Vs. All People (1998)
• High Percentage Of Gays Are Self-Employed
• Corporate Diversity Programs Expand Employment Opportunities
• Wealthy Gay Men And Lesbians Expand Philanthropic Horizons

Politics And Religion
• Gay Political Influence Grows
• Most Gays Affiliate With Democratic Party
• Religious Affiliations Reflect Mainstream Society
• Role Of Gay People Within Mainstream Religious Organizations Continues To Provoke Controversy
• Welcoming Congregation Movement Helps At Local Level
• American Reform Judaism Affirms Same-Sex Unions
• Gay And Lesbian Churches Formed

Other Demographic Factors
• Population Skewed Toward Younger Age Groups
• Table 2-11: Population By Age Group: Gay Men Vs. Male Population As A Whole, 2000
• Average Age Of Gay And Lesbian Population Will Increase
• Gay Population Has Above-Average Educational Status
• Studies Show Gays Poorly Served By Health System
• Hiv Infections Stabilize But Young Gay Males Remain At Risk

III. The Market

Market Size
• Several Assumptions Form Basis For Estimates Of Market Size
• Aggregate Income Of Gays Exceeds $400 Billion
• Table 3-1: Estimated Aggregate Income Of Gay Men, 1999
• Table 3-2: Estimated Aggregate Income Of Lesbians, 1999
• Table 3-3: Estimated Aggregate Income Of Gay Men And Lesbians, 1999
• Purchasing Power Of Gays Totals $340 Billion
• More Than 2 Million Gays Earn More Than $50,000

Geographic Segmentation
• Most Gays Live In Large Metropolitan Areas
• Smaller Cities Also Attract Gay Residents
• Central-City Populations Have Highest Percentage Of Self-Identified Gay Men And Lesbians
• Table 3-4: Gay And Lesbian Population As Percentage Of Total Population By Location Of Residence, 1999
• Averages Mask Significant Variations Across Individual Cities
• Gays More Urban Than Population As A Whole
• Table 3-5: Population By Location Of Residence: Gay Men And Lesbians Vs. Total Population, 1999
• Lesbians More Likely To Live In The Suburbs While Gay Men Favor Central Cities
• Table 3-6: Population By Location Of Residence: Gay Men Vs. Lesbians, 1999

Key Consumer Segments
• Gay And Lesbian Market Becoming More Segmented
• Generational Segments Are Key Element Of Gay And Lesbian Market
• Newest Gay And Lesbian Generation Sets Different Tone
• Gays Important Element In Trendsetting Urban Markets
• Self-Employed Gays Are Key Segment
• IBM Sees Opportunities In Gay Small-Business Owners
• Lesbians Represent Underserved Market
• Gay Families With Children Represent Growing Market
• Table 3-7: Projected Growth In Number Of Gay And Lesbian Households With Children, 1999-2004
• Older Gays Become A Market Force

Factors Affecting Market Growth
• Self-Identified Gays Likely To Form Greater Proportion Of Population
• More Heterosexual Individuals Interact With Openly Gay Family Members And Co-Workers
• Declining Prejudice Makes Backlash Against Advertisers Less Likely
• Gay Characters And Themes On Broadcast Television Raise Comfort Level Of Mainstream America
• Boycotts Prove Unsuccessful
• But Experts Still See Hesitation
• Marketability Remains Key Issue

Projected Market Growth
• Gay And Lesbian Market Will Grow 26.4% By 2004
• Table 3-8: Projected Growth Of Aggregate Income And Purchasing Power Of Gay Men And Lesbians, 1999-2004

IV. Gay Men and Lesbians As Consumers

Shopping Patterns And Buying Decisions
• Gay And Lesbian Consumers Expect Companies To Address Them On Their Own Terms
• Gay And Lesbian Consumers Loyal To Gay-Friendly Brands
• Gay And Lesbian Consumers Favor Companies Advertising In Gay Media
• American Airlines Benefits From Gay Consumer Loyalty
• Gay Consumer Behavior Often Reflects Value Structure
• American Express Finds Lesbians Save And Invest More
• Gay Consumers Seek Out New Experiences And Products
• Stress Can Motivate Consumer Behavior Of Gays
• Gay And Lesbian Consumers Often Favor Gay-Owned Businesses

Spending On Consumer Products
• Gay Men And Lesbians Spend More On Travel Than Mainstream Consumers
• Fashion Can Be A High Priority
• Gay And Lesbian Consumers Have Distinct Expenditure Patterns
• Gay Consumers Spend Heavily On Electronic Equipment
• Table 4-1: Gay And Lesbian Consumers: Purchases Of Compact Disc Players, Cassette Decks, And Home Theater Audio Systems
• Books And Cd Purchases Rank High
• Table 4-2: Gay And Lesbian Consumers: Purchases Of Compact Discs, Books, Pre-Recorded Video And Audio Cassette Tapes
• Gay And Lesbian Consumers Support The Arts
• Alcoholic Beverage Consumption Patterns Are Distinct
• Gay And Lesbian Consumers Highly Interested In Health, Fitness, And Appearance
• Table 4-3: Gay And Lesbian Consumers: Membership In Health Or Fitness Club
• Table 4-4: Gay And Lesbian Consumers: Use Of Vitamins Or Mineral Tablets, Capsules, Or Liquids (Non-Prescription)
• Food And Nutrition Expenditures Have High Priority
• Gay And Lesbian Consumers Are Above-Average Spenders On Home Improvements
• Table 4-5: Gay And Lesbian Consumers: Home Improvements Made In The Last 12 Months
• Home Appliances And Furniture Have High Priority
• Table 4-6: Gay And Lesbian Consumers: Furniture And Appliances Purchased In The Last 12 Months
• Opportunities Remain In Many Consumer Product Areas

Gay And Lesbian Consumers And The Internet
• Most Gay And Lesbian Households Own Computers
• Table 4-7: Gay And Lesbian Consumers: Ownership And Use Of Computers
• More Than 9 Million Gays Online Worldwide
• Gay Men And Lesbians More Likely To Be Online
• Table 4-8: Gay And Lesbian Consumers: Amount Of Time Spent Using Online/Interactive Services In Last 30 Days
• Online Financial Services Used Heavily
• Shopping Online Increases

V. Gay And Lesbian Media

Print
• Gay Press Played Critical Role In Gay Rights Movement
• Local Publications Gain
• Circulation Of Some National Magazines Remains Flat
• Advertisers Begin To Use Mainstream Media To Reach Gay And Lesbian Consumers
• The Advocate and outmaintain Top National Spots
• Gay Media Aim To Broaden Appeal To Mainstream Advertisers
• Consolidation And Convergence Change The Landscape Of Gay Print Media
• Arts And Gay News Account For Largest Editorial Segments
• Fashion Supplement Planned
• New Magazines Target Variety Of Niches In Gay And Lesbian Community
• Magazines Published For Gay And Lesbian Parents And Their Families
• HERO Provides Mainstream Bridge To Gay Community
• Magazines Launched For Gay Teens
• Venus Reaches African-American Gay Men And Lesbians
• New Publications Launched For Gay And Lesbian Elderly
• Gay Print Media Adapt To Internet
• Gay Print Readers Tend To Be Male
• Local Gay Print Readership Represents Affluent Market Segment
• Table 5-1: Demographic Characteristics Of Readership Of Local Gay Newspapers
• Readership Of National Publications Also Reflects Attractive Demographics
• Table 5-2: Demographic Characteristics Of Readership Of Selected National Gay And Lesbian Publications

Radio And Television
• Gay And Lesbian Radio Has Relatively Few Broadcasting Outlets
• Internet Opens New Horizons For Gay And Lesbian Radio
• GAYBC Offers Broad Programming Choices On Its Webcasts
• Triangle Radio Network Moves To The Web
• LesBiGay Radio Provides Local Programming
• Gay Television Outlets Remain Limited
• In The Life Retains Top Spot
• Mainstream Broadcasters Begin To Acknowledge Gay Audience

New Media
• Web Portals Improve Access To Gay And Lesbian Market
• Planetout Subscribers Reach 500,000
• Gay.Com Network Attracts Mass Marketers
• Gay Financial Network Takes Off

Direct Marketing
• Direct Marketing To Gays Expands Dramatically
• Gay Lists Pull Well For Big-Ticket Items
• Direct Marketing To Gays Still Poses Challenges
• Northwest Airlines Uses Direct Mail
• Cardpack Mailer Uses Gay Vague Imagery

VI. Marketing To Gay Men And Lesbians

Marketing Fundamentals
• Gay-Friendly Corporate Policies Critical Element Of Successful Marketing Strategy
• Opinions Differ On Domestic-Partner Benefits
• Comprehensive Marketing And Promotion Programs Include Multiple Components
• Substantial Market Research Precedes Major Campaigns
• Gay Market Assessment Helps Companies Target Gay Consumers
• Anheuser-Busch Successfully Manages Reaction To Ads

Advertising Strategies
• Three Schools Of Thought On Most Effective Advertising Styles
• Some Ads Depend Upon Ambiguity
• Effectiveness Of "Gay Vague" Ads Questioned
• Outwardly Gay Ads Become More Common
• Subtle Gay-Specific Messages And Images Gain Support
• Phased Approach Is Popular
• Mainstream Ads Still Common In Gay Media
• Gay Pride Symbols Often Used In Ads
• Agency Offers Stock Images For Gay Advertisements
• First-Time Advertisers Choose Online Presence
• Online Advertisers Use General-Market Ads On Gay Web Portals
• Advertisers Use Magazine Supplements

Trends In Advertising Expenditures
• Gay Press Report continues Publication
• Advertising In Gay Print Media Shows Steady Year-To-Year Growth
• Local Newspapers Retain Top Spot
• Figure 6-1: Growth In Advertising Expenditures In Gay Print Media, 1994-1999
• National Advertisers Show Increasing Interest
• Table 6-1: Trends In Advertising In The Gay Press By Category, 1997-1999
• Advertising Expenditures In Lesbian Publications Are Low

Promotion Strategies
• Subaru Sees Lesbians As Key Element Of Marketing Strategy
• American Airlines Finds Success With Its "Rainbow Teaam" And Sponsorship Strategy
• United Airlines Battles American Airlines For Gay Market Share
• Starwood Hotels Sponsors Gay Events
• Hartford Financial Services Group Offers Discounts
• Community Involvement Important Part Of Strategy For Beer Companies

Adapting Products And Services To The Gay And Lesbian Market
• IBM Customizes Palm Pilot For Gay Consumers
• Mutual Fund Invests In Gay-Friendly Firms
• Gay Retirement Communities Planned
• Gay Travel Options Expand
• Gay-Themed Films Build Audience
• Hollywood Video Offers Gay-Themed Movie Section
• Gay Pride Beer Launched
• Gay-Product Catalog Builds Clientele

Online Marketing To The Gay Consumer
• Internet Opens New Vistas For Marketing To Gays
• Homepharmacy.Com Enters Gay Market
• Financial Services Industry Uses Internet To Reach Gay Customers
• New Banks Offer Online Services For Gay Men And Lesbians

VII. Examples Of Advertising Targeted To Gay Men And Lesbians

Overview Of Advertising Themes
• Awareness Of Gay And Lesbian Issues
• Gay Pride Symbols
• Relationships
• Scenes From Everyday Life
• Breaking New Ground
• Living With Hiv

Financial Services
• G&L Internet Bank Ads Focus On Relationships
• Financial Services Firms Speak Directly To Gay And Lesbian Couples
• Gay Financial Network Uses Humor In Mainstream Advertising Campaign
• Taking Pride In The Gay Community

Home Furnishings
• Furniture Company Presents Family Image
• Online Home-Furnishing Companies Advertise In Gay Media

Alcoholic Beverages
• Bacardi Appeals To Passion And Sensuality
• Hiram Walker Uses Personal-Ad Theme
• Wineries Reach Out To The Gay Community
• Kobrand's Alizé Appeals To Several Segments
• Brewers Compete For Gay Drinkers

Pharmaceutical Companies
• Pharmaceutical Firms Advertise Hiv Medications Heavily In Gay Media
• Propecia Targets Gay Men

Travel
• Vacation Destinations In The U.S. Target Gay Tourists
• Britain And France Battle For U.S. Gay And Lesbian Travel Business

Other Sectors
• IBM Reaches Out To Gay Consumers
• Subaru Ads Use Subtle Themes

Appendix I: Examples Of Gay Consumer Advertising

Appendix II: Addresses Of Selected Gay And Lesbian Market Resources
Advertising Agencies/Public Relations/Marketing Consultants
Gay And Lesbian Publications
Internet Sites
Organizations