The Gay and Lesbian Market: New Trends, New Opportunities, 3rd Edition : Packaged Facts

Shifts in Societal Attitudes Contribute to Increasing Saliency of Gay and Lesbian Market
Gay Parenting Becomes Growing Market Force
Gay Parents Spend More than $22 Billion on Consumer Products and Services for Their Kids
Concept of "Buying Power" Used to Assess Market Size
Buying Power of Gay Men and Lesbians Totals $451 Billion
Gay Purchasing Power Highest in New York Metro Area 9
Top 15 Markets Account for 61% of Total Gay and Lesbian Buying Power

Consumer Behavior

Reputation of Company Has Impact on Gay Consumer Choices
Positive Personal Experience of Gay Consumers Also Critical Factor
Gays Are Early Adopters
Online Purchases Leading Use of Credit Cards
Gay Consumers Carry Higher Credit Card Balances
Spending Choices Listed in Survey
Gay Travelers More Likely to Vacation in Foreign Destinations
Gays More Likely to Have High-Speed Internet Connection
Gays Heavy Users of Internet
Gays More Likely to Shop and Buy Online

Media

Gay Press Evolves with Gay Community
Consolidation Brings Criticism from Activists but Creates Opportunities for Publishers and Advertisers
Viacom Plans to Launch Gay Cable Channel
PlanetOut Partners Leads Gay Web Sites
Web Sites Serve Many Market Segments

Marketing, Promotional, and Advertising Strategies

Experts Advise Firms First to Treat Gay Employees Equally and Contribute to Gay Causes
Being First to Market Seen as Offering Critical Competitive Edge
Online Marketing Has High Priority
Grassroots Activities Key Component of Gay Marketing
Ad Spending in Gay Press Grows Faster than Spending in All Consumer Magazines
2002 Gay Press Report Sees Increasing Use of Gay-Focused Ads

Case Studies of Companies Marketing to Gay Men and Lesbians

White Rock Distilleries Unexpectedly Discovers Gay Market
Bridgestone/Firestone Reaches Out to Gays
Prudential’s Multicultural Marketing Includes Gays
Orbitz Courts Gay Community
Wrigley’s Big Red Markets to Gays to Help Revitalize Brand Looking Ahead: Trends and Opportunities
- Backlash Less of a Strategic Concern
- Trendsetting Segment of Gay Market Can Help Position New Products and Brands
- Gays Represent Exceptional E-Commerce Target
- Gay and Lesbian Market Offers Above-Average Growth Opportunity
- Segmentation of Gay and Lesbian Market Creates Multiple Niches
- Gay Consumers Share Attributes of Many Other Consumer Groups
- Channels to Reach Gay Market Multiply
- More Options for Gay Men and Lesbians Mean More Opportunities for Marketers of Consumer Goods and Services
- More Ways Available for Marketers to Measure ROI in the Gay and Lesbian Market
- Many Opportunities Remain to Leverage Brand Loyalty of Gay Consumers

II. Demographic Overview

Market Definition

Key Terms Defined
Sexual Orientation Has Many Manifestations
Self-Identification Best Criterion for Defining Scope of Gay and Lesbian Market

Survey Research Issues

Gay and Lesbian Survey Research Increasingly Available
Table 2-1: Selected Survey Research Sources on the Gay and Lesbian Population
Survey Responses Depend on How Question Is Framed
Table 2-2: Self-Identification Preferences: Gay/Lesbian vs. Bisexual, September 2000
Research Indicates Online Surveys Provide Accurate Profile of Gay Consumers

Size and Growth of Population

Assumptions Reviewed
Gay and Lesbian Population Exceeds 14 Million
Table 2-3: Projected Growth of Total U.S. and Gay and Lesbian Population 18 Years Old and Over, 2002-2007
Gay Men Represent Larger Segment of Population
Surveys Disagree on Gender Ratio in Gay and Lesbian Population
Population of Gay Men Totals 8.3 Million
Table 2-4: Projected Growth of Total U.S. and Gay and Lesbian Population 18 Years Old and Over: by Gender, 2002-2007

Age Structure

Gays Younger than Average
Table 2-5: Age Structure: Gay Men and Lesbians vs. General Population, 2000
Gay Men Major Segment of Population of Younger Males
Table 2-6: Population by Age Group: Gay Men vs. Male Population as a Whole, 2002
Table 2-7: Population by Age Group: Gay Men as Percent of Male Population as a Whole, 2002

Race and Ethnicity

Gay and Lesbian Population Reflects Diversity of America
Table 2-8: Race and Hispanic Origin: Gay Men and Lesbians vs. General Population, September 2000
Table 2-9: Race and Hispanic Origin of Lesbian, Gay, and Bisexual Survey Respondents, September 2000
Self-Identification Complex Issue for African Americans and Hispanics

Household Structure and Living Arrangements

Most Gays Are Single
Table 2-10: Marital Status of People 18 Years Old and Over, 2001
Table 2-11: Living Arrangements: Gay Men and Lesbians vs. General Population, September 2000
But Many Live in Committed Relationships
Census Data Undercounted Number of Gay Couples
More than 3 Million Gay and Lesbian Households Are Domestic Partnerships
Table 2-12: Gay Men and Lesbians: by Living Arrangement, 2002
Table 2-13: Gay and Lesbian Households: by Type of Household
Many Gays Live in Households with Children
Table 2-14: Gay Men and Lesbians with Children, September 2000
Gays Focus More on Children
More than 2 Million Gay Households Include Children under 18
Table 2-15: Gay and Lesbian Households with Children, 2002
At Least 3 Million Children Live in Gay Households
Number of Gay Households with Children Will Grow Substantially
Table 2-16: Projected Growth of Gay and Lesbian Households with Children under 18 Years of Age, 2002-2007

Geographic Distribution

Census 2000 Provides Framework for Geographic Analysis of Gay Population
Population of Same-Sex Couples Highly Concentrated
Table 2-17: States with Largest Populations of Same-Sex Unmarried Couples, 2000
Population of Same-Sex Couples More Concentrated than Other Population Segments
Table 2-18: Ranking of States: Same-Sex Unmarried Couples vs. Opposite-Sex Unmarried Couples, 2000
Gay Population More Urbanized
Table 2-19: Same-Sex Unmarried Couples: Metropolitan vs. Non-Metropolitan Residence, 2000
New York, Los Angeles, and San Francisco Leading Metro Areas for Same-Sex Couples
Table 2-20: Metropolitan Areas with Largest Populations of Same-Sex Unmarried Couples, 2000
Residential Patterns of Gay Men and Lesbians Differ
Table 2-21: Number of Same-Sex Unmarried Couples: by Gender and State, 2000
Gay Men More Likely to Live in Large Metro Areas
Table 2-22: Same-Sex Unmarried Couples: by Gender and Location of Residence: Metropolitan vs. Non-Metropolitan, 2000
Lesbians Are More Suburban than Gay Men
Small Towns Also Can Be Gay Population Centers
Residential Patterns in Key Metro Areas Analyzed
Male Same-Sex Couples in Bay Area Concentrated in San Francisco
Table 2-23: Distribution of Same-Sex Couples in San Francisco Bay Area: by County, 2000
Los Angeles County Has Majority of Same-Sex Couples in Southern California
Table 2-24: Distribution of Same-Sex Couples in Los Angeles Area: by County, 2000
Manhattan and Brooklyn Attract Gay Men While Lesbians Choose New York Suburbs
Table 2-25: Distribution of Same-Sex Couples in New York City Metropolitan Area: by County, 2000
Most Same-Sex Couples in the District of Columbia Are Male
Table 2-26: Distribution of Same-Sex Couples in Washington, D.C Metropolitan Area: by County, 2000

Educational Achievement

Educational Achievement Data Vary
Table 2-27: Educational Achievement: Gay Men and Lesbians vs. General Population, September 2000
Table 2-28: Educational Achievement of Gay Men and Lesbians
Colleges Set to Recruit Gay and Lesbian Students

Economic Status

Gays More Likely to Be Self-Employed
Table 2-29: Employment Status of Gay Men and Lesbians, September 2000
Table 2-30: Employment Status of Gay Men and Lesbians, September 2000
Income of Gay Men and Lesbians Provokes Controversy
Household Income of Total U.S. Population Varies by Type of Household
Table 2-31: Total Family Household Income: by Household Type, 1999
Table 2-32: Total Nonfamily Household Income: by Household Type, 1999
Recent Surveys Show Higher Incomes for Gay and Lesbian Households
Table 2-33: Total Household Income: Gay Men and Lesbians vs. General Population, September 2000
Table 2-34: Total Household Income: Gay Men and Lesbians vs. General Population, 1999
Survey Captures Gay Perceptions of Income Levels
Table 2-35: Perceptions of Income Levels of Gay Men: Gay Men and Lesbians vs. General Population, September 2000
Table 2-36: Perceptions of Income Levels of Lesbians: Gay Men and Lesbians vs. General Population, September 2000

Health Issues

HIV/AIDS Remains Serious Concern for Gay Community
Younger Gay Men Remain at High Risk
Other Health Issues Begin to Capture Attention of Gay Men
Research Confirms Impact of Discrimination on Mental Health of Gay Population
Studies Highlight Lesbian Health Issues
Lesbians at Higher Risk for Cancer

Politics and Religion

Gays More Likely to Be Political Moderates and Liberals
Table 2-37: Political Views: Gay Men and Lesbians vs. General Population, September 2000
Table 2-38: Political Views: Gay Men and Lesbians vs. General Population, 2000
Most Gays Lean toward Democratic Party
Table 2-39: Party Affiliation: Gay Men and Lesbians vs. General Population, September 2000
Table 2-40: Party Affiliation: Gay Men and Lesbians vs. General Population, 2000
Voting Participation High
Gay and Lesbian Population Less Involved in Organized Religion
Table 2-41: Importance of Religion: Gay Men and Lesbians vs. General Population, September 2000
Table 2-42: Religious Identification: Gay Men and Lesbians vs. General Population, September 2000
Metropolitan Community Churches Attract Many Gays

Attitudes and Issues Affecting the Gay Population

Openness Regarding Sexual Orientation Remains Limited
Table 2-43: Degree of Openness among Gay Men and Lesbians regarding Sexual Orientation, September 2000
Figure 2-1: Openness with Sexual Orientation
Openness Related to Type of Relationship
Table 2-44: Degree of Openness regarding Sexual Orientation: by Type of Relationship, September 2000
AEI Study Sees Dramatic Long-Term Shift in Public Attitudes toward Gays
Gays Perceive Greater Degree of Acceptance
Table 2-45: Acceptance of Gays and Lesbians, September 2000
Gender Gap Seen in Attitudes toward Gays
Opinions Differ on Media Coverage of Gays
Table 2-46: Adequacy of Media Coverage of Gays, September 2000
Table 2-47: Fairness of Media Coverage of Gays, September 2000
Table 2-48: Perceptions of Gays in the Entertainment Media, September 2000
Disclosure Fails to Affect Public Attitudes toward Rosie O’Donnell
Most Americans Accepting of Gay Athletes
Table 2-49a: Views toward a Favorite Male Athlete If He Revealed that He Is Gay, July 2002
Table 2-49b: Views toward a Favorite Female Athlete If She Revealed that She Is Gay, July 2002
Table 2-49c: Perception of Other Sports Fans’ Views toward an Athlete’s Sexual Orientation, July 2002
Most People Support Law Prohibiting Job Discrimination against Gays
Table 2-50a: Support for Employment Discrimination Law: Gay Men and Lesbians vs. General Population, June 2001
Table 2-50b: Support for Employment Discrimination Law: Gay Men and Lesbians vs. General Population, June 2001
Table 2-50c: Support for Employment Discrimination Law: Gay Men and Lesbians vs. General Population, June 2001
Support for Same-Sex Partner Rights Increases
Table 2-51: Views toward Providing Certain Rights and Benefits to Same-Sex Couples, June 2002

III. Survey of the Market

Factors Affecting the Growth of the Market

Shifts in Societal Attitudes Contribute to Increasing Saliency of Gay and Lesbian Market
Most Gay Journalists Believe Media Coverage Has Shown Continuous Improvement
Change in New York Times Policy on Reporting Same-Sex Commitment Ceremonies Seen as Cultural Bellwether
Corporate America Found to Improve Workplace for Gays
Tolerance of Gays Seen as Critical Element of High-Tech Growth
Younger Age Groups More Accepting of Diversity
Self-Identification Rates Likely to Increase
Aging of Gay Population Brings New Challenges and Opportunities

Key Market Segments

Gay and Lesbian Market Includes Many Distinct Consumer Segments
Study Suggests Gay Men Living in Gay Neighborhoods Comprise Core Segment of Gay Market
Lesbian Consumer Segment More Diffuse
Gay Customers Important Customer Base for High-End Retailers

The Gay and Lesbian Family Market Segment

Gay Parenting Becomes Growing Force
More States Recognize Role of Gay Parents
Marketplace Slow to Acknowledge Gay Families
Family Expenditures on Children Analyzed
Gay Parents Spend More than $22 Billion on Consumer Products and Services for Their Kids
Table 3-1: Gay and Lesbian Family Expenditures on Children for Selected Consumer Products, 2002
Expenditures by Gay Parents on Children Will Reach $28.5 Billion in 2007
Table 3-2: Size and Growth in Gay and Lesbian Family Expenditures on Children for Selected Consumer Products, 2002-2007

Size and Growth of the Gay and Lesbian Market

Concept of "Buying Power" Used to Assess Market Size
Gay and Lesbian Buying Power Analyzed by Witeck-Combs Communications
Buying Power of Gay Men and Lesbians Totals $451 Billion
Gay and Lesbian Buying Power Will Reach $608 Billion in 2007
Table 3-3: Projected Growth of Gay and Lesbian Buying Power, 2002-2007

Leading Gay and Lesbian Markets

Major Gay Markets Listed
Table 3-4: Metropolitan Areas with Largest Gay and Lesbian Populations, 2002
Gay Purchasing Power Highest in New York Metro Area
Table 3-5: Metropolitan Areas by Gay and Lesbian Buying Power, 2002
Top 15 Markets Account for 62% of Total Gay and Lesbian Buying Power
Table 3-6: Gay and Lesbian Buying Power: Top 15 Metropolitan Areas vs. All Other Areas, 2002
Per Capita Buying Power Varies Significantly by Area
Table 3-7: Metropolitan Areas by Gay and Lesbian Buying Power, 2002
Gays and Lesbians in Top Metro Areas Have Significantly Higher Per Capita Buying Power
Figure 3-1: Per Capita Gay and Lesbian Buying Power: 15 Top Metro Areas vs. Rest of United States, 2002

IV. Consumer Behavior

Influences on Buying Decisions

Reputation of Company Has Impact on Gay Consumer Choices
Table 4-1: Impact of Company Reputation on Gay Consumer Behavior
Table 4-2: What Companies Need to Do to Gain Gay Consumer Loyalty
Positive Personal Experience of Gay Consumers Critical Factor
Table 4-3: Gay and Lesbian Perceptions of Components of Company Reputation
Demographic Factors Also Affect Gay Buying Choices
Life Stage of Individual Gay Consumer Another Key Variable
Core Age Groups in Gay Population Exhibit Distinct Consumer Expenditure Patterns
Table 4-4: Expenditures of Consumer Units of Single Males: by Age of Reference Person and Selected Expenditure Category, 2000
Table 4-5: Expenditures of Consumer Units of Single Females: by Age of Reference Person and Selected Expenditure Category, 2000
Table 4-6: Selected Expenditures as Percent of Total Consumer Expenditures: Single Male Consumer Units vs. Other Consumer Units, 2000

Personal Finance

Health-Care Costs and Debts Biggest Source of Financial Worry
Table 4-7: Top Issues Affecting Financial Well-Being of Household: Gay and Lesbian vs. Heterosexual Consumers, April 2001
Gay Consumers Increasingly Confident in Financial Management Skills
Table 4-8: Attitudes toward Personal Finance: Gay and Lesbian vs. Heterosexual Consumers, March 2001 and August 2002
Ownership of Investment Accounts Less Common
Table 4-9: Ownership of Investment Accounts: Gay and Lesbian vs. Heterosexual Consumers
Gays Prefer Financial Institutions with Personal Touch
Table 4-10: Features Most Important When Choosing a Financial Institution: Gay and Lesbian vs. Heterosexual Consumers, March-April 2001
Gays Look to Basic Features of Credit Cards

Shopping Behavior and Buying Patterns

Gays Are Early Adopters
Table 4-12: Selected Consumer Behaviors: Gay and Lesbian vs. Heterosexual Consumers
Online Purchases Leading Use of Credit Cards
Table 4-13: Products and Services Most Frequently Purchased with a Credit Card: Gay and Lesbian vs. Heterosexual Consumers, July 2002
Gay Consumers Carry Higher Credit Card Balances
Table 4-14: Credit Card Balances: Gay and Lesbian vs. Heterosexual Consumers, July 2002
Spending Choices Listed in Survey
Table 4-15: Attitudes toward Spending: Gay and Lesbian vs. Heterosexual Consumers, April 2001
Many Gay Consumers Plan for New Car
Table 4-16: Likelihood of Leasing or Purchasing New Car: Gay and Lesbian vs. Heterosexual Consumers
Wal-Mart and Target Attract Gay Shoppers
Table 4-17: Most Popular Stores: Gay and Lesbian vs. Heterosexual Consumers, March-April 2002
Gay Travelers More Likely to Vacation in Foreign Destinations
Table 4-18: Vacation Plans: Gay and Lesbian vs. Heterosexual Consumers, June
Many Gays Participate in Team Sports
Table 4-19: Participation in Team Sports: Gay and Lesbian vs. Heterosexual Consumers

Gays and Technology

Gays More Likely to Have High-Speed Internet Connection
Table 4-20: Type of Internet Connection: Gay and Lesbian vs. Heterosexual Consumers, June 2000 vs. May 2001
Gays Heavy Users of Internet
Table 4-21: Time Spent Online: Gay and Lesbian vs. Heterosexual Consumers, May 2001
Many Gay Households Have Children Using the Web
Table 4-22: Number of Children Accessing the Internet: Gay and Lesbian vs. Heterosexual Consumers, May 2001
Gays More Likely to Shop and Buy Online
Table 4-23: Use of Internet: by Type of Activity: and Lesbian vs. Heterosexual Consumers, January 2001
Table 4-24: Selected Online-Related Consumer Behaviors: Gay and Lesbian vs. Heterosexual Consumers, May 2001
Gays Look to Internet for Financial Information
Table 4-25: Sources of Financial Information for Gay Men and Lesbians, April2001

V. Media

Print Media

Gay Press Evolves with Gay Community
Evolution of Gay Print Media Draws Criticism from Gay Activists
Consolidation Brings Creates Opportunities for Publishers and Advertisers
Local Publications Predominate
2002 Gay Press Report Shows Circulation Declines
National Titles Remain Influential
Publications Target Niche Segments in Gay and Lesbian Market

Television and Radio

Gay Viewers Favor Gay and Lesbian TV Channel
Table 5-1: Likelihood of Subscribing to a Paid Cable Television Channel for Gays and Lesbians: GLBT vs. Heterosexual Respondents
Table 5-2: Likelihood of Purchasing Products or Services from Companies Advertising on a Paid Cable Television Channel for Gays and Lesbians: GLBT vs. Heterosexual Respondents
Gay Viewers More Likely to Subscribe to Premium Channels
Table 5-3: Subscribers to Premium Movie Channels or Networks: Gay and Lesbian vs. Heterosexual Consumers, April 2001
Showtime Seen as Providing Most Gay-Focused Programming
Table 5-4: Cable Television Channel with Program Content for Gays and Lesbians: GLBT vs. Heterosexual Respondents
Showtime Achieves Major Success with "Queer as Folk"
Table 5-5: Viewers of Showtime’s U.S. Version of "Queer as Folk": Gay and Lesbian vs. Heterosexual Consumers, April 2001
Showtime Launches Gay Programming Block
Gay Characters Have Major Roles on Network Hits
Viacom Plans to Launch Gay Cable Channel
Other Networks Compete with Viacom for Gay Audience
Gay-Themed Networks Face Obstacles
Gay Radio Remains Limited

New Media

PlanetOut Partners Leads Gay Web sites
ProudParenting.com Supports Gay and Lesbian Parents
Web Site Created for Gay Sports Fans and Athletes
Gay Financial Network Continues to Serve Financial Needs of Gay Community

VI. Marketing, Promotional, And Advertising Strategies

Marketing Strategies and Promotional Approaches

Experts Advise Firms First to Treat Gay Employees Equally
Support for Gay and Lesbian Causes Seen as Key Part of Building Relationship with Gay Consumers
Marketers and Advertisers Tap Expertise of Specialist Agencies
Companies Also Turn to Gay Employee Groups for Strategic Marketing Advice
Marketers Start to Fold Gay & Lesbian Segment into Diversity Marketing Strategies
Being First to Market Seen as Offering Critical Competitive Edge
Online Marketing Has High Priority
Grassroots Activities Key Component of Gay Marketing
Gay Community Events Continue to Attract Corporate Sponsors
Direct Marketing to Gays Difficult but Doable
Direct-Mail Piece from HBO Designed to Appeal Both to Gays and Broader Audience
Marketers Begin to Notice Gay Families
Marketers Start to Focus on Gay Sports Fans
Showtime Develops Licensing Program for "Queer as Folk"

Advertising Expenditures

Gay Press Report Analyzes Advertising in Gay Press
Ad Spending in Gay Press Grows Faster than Spending in All Consumer Magazines
Table 6-1: Advertising Expenditures: Gay Press vs. Total Consumer Magazines, 1996-2001
Most Advertising Placed in Local Gay Press
Growth Areas Analyzed
Table 6-2: Share of Total Ad Space: by Type of Ad, 2000 vs. 2001
Table 6-3: Advertising Growth Areas: by Ad Category, 1997 vs. 2001
Table 6-4: Advertising Decline Areas: by Ad Category, 1997 vs. 2001

Advertising Strategies and Themes

Advertisers Respond to Changes in Editorial Content in Gay Press
2002 Gay Press Report Sees Increasing Use of Gay-Focused Ads
CommercialCloset.org Serves as Repository of Gay-Themed Advertising
Gay Ads Have Recurring Themes
“Gay Vague” Advertising Still Has Its Place
Gay-Themed TV Commercials More Adventuresome in Europe
Gay-Themed Commercials Remain Constrained in U.S. Market
Launch of U.S. Gay TV Networks Will Provide Wider Platform for Gay-Themed Commercials

VII. Case Studies Of Companies Marketing To Gay Men And Lesbians

Alcoholic Beverages

Clos du Bois Builds Loyalty by Supporting Gay Community
Absolut Designs Special Campaign to Honor GLAAD
White Rock Distilleries Unexpectedly Discovers Gay Market

Automotive

Bridgestone/Firestone Reaches Out to Gays
Ford and DaimlerChrysler Look to Gay Market
Volkswagen Targets Gay Media
Subaru Continues Gay and Lesbian Marketing Efforts

Financial Services

Banc One Targets Gay Market
Prudential’s Multicultural Marketing Includes Gays
Scudder Looks to Affluent Gays

Travel and Entertainment

US Airways Reaches Out to the Gay Market
Orbitz Courts Gay Community
Tourist Destinations Welcome Gay Business
Showtime Promotes "Queer as Folk"
WNBA Teams Court Lesbian Fans

Other Industries

Motorola Includes Gays in Diversity Marketing
Personal-Care Companies Target Gay Market
Wrigley’s Big Red Markets to Gays to Help Revitalize Brand

VIII. Looking Ahead: Trends And Opportunities

Trends and Opportunities

Backlash Less of a Strategic Concern
Trendsetting Segment of Gay Market Can Help Position New Products and Brands
Gays Represent Exceptional E-Commerce Target
Gay and Lesbian Market Offers Above-Average Growth Opportunity
Segmentation of Gay and Lesbian Market Creates Multiple Niches
Gay Consumers Share Attributes of Many Other Consumer Groups
Channels to Reach Gay Market Multiply
More Options for Gay Men and Lesbians Mean More Opportunities for Marketers of Consumer Goods and Services
Gay and Lesbian Parents Represent Emerging Market Segment
More Ways Available for Marketers to Measure ROI in the Gay and Lesbian Market
Many Opportunities Remain to Leverage Brand Loyalty of Gay Consumers

Appendix I: Examples Of Gay & Lesbian Advertising

Appendix II: Addresses Of Selected Gay & Lesbian Market Resources

Advertising Agencies/Marketing Consultants
Publications
Other Media
Organizations

800.298.5294

Int'l: +1.240.747.3095

Questions?

Contact a research specialist >