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Over the past few years, there has been an industrywide rallying cry about the yawning investment gap between the general market and minority-owned media.
Nearly every marketer and media buyer agency has pledged a more diversified spending approach. At the same time, major investors including Tyler Perry, Robert Smith and Byron Allen, as well as entrepreneurs such as Lynnwood Bibbens of ReachTV, Albert Thompson of Mnumonic and Christian Facey of AudioMob, are looking to not only create unique content but actually own, operate and compete in multiple points of the media value chain to deliver value to customers.
Yet progress in terms of investment in multicultural and diverse media has been painfully slow, in large part due to persistent myths regarding the scale of these properties. These myths are so widespread that in many cases it is not only hurting minority-owned businesses but causing marketers to leave significant revenue on the table.
When it comes to dispelling the scale myth, the macro problem is fourfold:
Categorization: Many marketers continue to insist on placing minority-owned media properties in a silo, which places an arbitrary ceiling on growth. When publishers are placed in a specific category, this tends to feed the perception that they are only valuable for certain types of campaigns, or that they should “wait in line” when media spending is being allocated.
Naturally, this limits these publishers’ chances at landing on media plans. Unfortunately, this experience is all too common for minority-owned media brands, which often find themselves waiting for “multicultural” budgets to be deployed.
Budget allocation: Decisions to spend dollars on minority-owned and targeted media are frequently made based on a relatively small percentage basis, which is typically not reflective of population growth. Indeed, even as more brands make larger commitments to minority-owned media, few have truly closed the gap between spending and population distribution.
An unfortunate side effect of this slow shift is a small handful of minority-targeted media companies end up capturing the lion’s share of dollars, rather than the pie being made bigger for all.
Ad tech: Increasingly, in an effort to simplify the digital advertising supply chain, agencies and brands are striking deals with a preferred (and thus limited) set of partners, which has the effect of cutting out minority-owned companies. The more that advertisers look to cut down on the number of partners they work with, the more they end up cutting direct deals with a small handful of large publishers, partners and adtech firms.
The result is that, in the name of efficiency, minority-owned or targeted players end up being eliminated from consideration before they even have a chance to make their pitch.
Ad buyer misperceptions: Many media teams are known to inaccurately label minority-owned properties as “small” or subscale, despite evidence to the contrary. In an ecosystem that is already dominated by a few tech giants, the majority of digital media companies struggle to stand out. This becomes even harder for minority-aimed publishers, which are perhaps lesser known to many ad buying teams and are compared to the walled garden partners.
That said, many of these publishers boast of large and growing audiences, despite the lingering view that they can’t deliver the reach on the level of “general market” properties.
Doing the right thing for the bottom line
To be sure, this lingering scale perception challenge isn’t just about a lack of equity, but one of lost opportunities for marketers. That’s because reaching diverse audiences is vital to driving business results for modern brands, while ignoring these groups can prove even more costly.
In fact, nearly 7 out of 10 multicultural consumers say that brands purposely investing ad dollars with media that is owned or focused on them strongly demonstrates support for their communities.
Moreover, the same research shows that almost 90% of multicultural consumers report taking action because of a company investing in their community, including telling others about the brand, sharing their support on social media or even switching away from a competitor brand.
Simply put, ignoring these communities, particularly while using scale as an excuse, is bad business.
It is important to also note that investment in minority-owned media is not limited to minority-targeted campaigns, as the depth and breadth of minority-owned media brands is vast. Consider Tyler Perry’s multiplatform empire, which ranges from movies to sitcoms. The Allen Media Group has a longstanding TV syndication and distribution business, while also owning The Weather Channel and its digital arm. Ironically, brands that ignore these properties are missing out on significant scale while failing to further their diversity goals.
If nothing else, the business argument for diversity would seem to trump any scale concerns.
A call for more profound change
There has been some positive momentum in the industry, as many businesses have fashioned dedicated efforts toward supporting social justice and a more egalitarian approach to marketing spending. Yet too often, minority-owned media vehicles are left fighting against both structural obstacles and institutional biases.
As a result, business progress is lagging behind sentiment and rhetoric. Again, this is not about fostering equality, but the vital importance of targeting upwards of two-fifths of the U.S. market in a way that demonstrates understanding and ultimately winning more customers.
Therefore, the ad industry needs to fundamentally rethink its approach to minority-owned media in all of its variants within the value chain. This will require a mixture of education and a thorough examination of our processes.
It is of paramount importance that we work toward eradicating the scale myth in order to drive toward equitable media allocation and investment. This is mission critical for any brand looking to drive revenue and garner a larger market share.
