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The Challenges and Opportunities of Inclusive Marketing in a Polarized Context
How inclusive brands can mitigate risk and thrive by embracing their role, representation, and resonance
In 2024, an election year rife with political tension, social issues were at the center of the debate and a key component of political parties' proposals. If in the past marketers were able to embrace social causes to give back to the communities they serve, or to live their brands' values, today those same initiatives can generate negative attention from political agitators. Efforts to tackle systemic racial problems or support LGBTQ+ inclusion have faced opposition from extreme activists. And terms such as diversity, equity, and inclusion (DEI) have been used negatively against businesses and individuals committed to these principles.
Lately, many companies and brands have felt pressured to step back from their equity programs, support for vulnerable groups, or inclusion of under-represented populations. In the face of opposition, some brands have eliminated their initiatives altogether, modified their language or approach but maintained their inclusive initiatives, or managed to deflect attacks. Yet, recently, a pro-inclusion movement has also emerged, championing inclusive and equitable initiatives as drivers of business success. This movement is supported by non-profits, shareholders, and CEOs from companies such as JP Morgan Chase, ConocoPhillips, and Cigna, among others.
Remaining neutral or silent on this matter is no longer feasible (or advisable), as even inaction is a form of action. Brand leaders must explicitly communicate their values and allegiances. As in 2020 when the social justice movement erupted, brands are called to state their position on DEI. And regardless of their response, there will be positive and negative reactions.
Once more, the industry needs to prove the case for inclusive marketing and understand the opportunities and risks it entails.
Researchers and academics alike continue to publish perspectives that reiterate the importance for brands to stay committed to their inclusion efforts. In fact, a recently published report by the Unstereotype Alliance Secretariat at UN Women and the Saïd Business School at the University of Oxford proved the business case for inclusive advertising. According to the report, brand campaigns that scored higher on inclusive advertising practices often performed better than brands with lower-scoring campaigns:
- 5 percent higher shorter-term sales
- 3 percent higher longer-term sales
- 33 percent higher strong consideration
- 62 percent higher likelihood of being a customer's first choice
- 8 percent higher incidence of being trialed
- 23 percent lower chance of being abandoned after trial
- 15 percent higher loyalty
- 54 higher pricing power
In sum, the report found inclusive brands sell more, are trialed more, enjoy higher consumer loyalty, and are valued more by customers. Moreover, they have higher brand equity (8.3 percent more meaningful, 12.1 percent more different, and 9.4 percent higher salience) than their lower-scoring counterparts.
Despite evidentiary support that inclusion efforts lead to actual growth, the reality of the U.S. landscape today still poses inevitable risk. But as with all risk, mitigation is possible if brands can fully embrace inclusion tactics across three areas: role, representation, and resonance.
Role: How a Brand Communicates Its Values and Tells Its Story
Every brand should have an inclusion strategy to guide how inclusion manifests across the organization and in its branded communications. Inclusion can either play a lead or supporting role in the brand narrative; inclusion cannot be strategically ignored altogether.
Given the changing nature of U.S. demographics, inclusion is an expectation among consumers and employees alike, and a driver of commercial growth. The growing influence and spending power of polycultural consumers demands more inclusive strategies from brands, as the majority of high growth yet often under-represented consumers are left feeling frustrated that they are continuously treated as an afterthought, according to 2023 data from Kantar DEI MONITOR.
Additionally, it's critical to articulate how one's product, service, or experience brings value to consumers, especially those who tend to be under served. Identifying intrinsic human-centered needs or tensions correlated to a brand's offer will broaden appeal and reinforce credibility.
Representation: How a Brand's Identity Is Expressed
Focusing on inclusion demands that brands follow principles of genuine diversity and inclusion representation that reflect people and their world today. And though the term "representation" connotes the focus on visuals, inclusive representation is not based solely on diversity of appearances. Rather, it means emphasizing realistic — not perfect — portrayals of people, giving visibility to marginalized communities without bias or stereotype, and understanding cultural nuances that drive greater inclusion. Indeed, Kantar's 2024 global "Brand Inclusion Index" study notes that embracing body inclusivity and showing respect for all ages are trending desires across all 18 countries included in the study.
In efforts to drive greater representation, the line between inclusion and tokenism can become blurred. This remains one of the biggest challenges for brands, even those with the best of intentions. And when inclusion and diversity choices become an exercise in checking a box, consumers can sense it.
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Marketers should choose brand narratives that bring untold human stories to life. In doing so they can generate empathy and bring people closer together. It is important to unfold the narrative in multiple layers, avoiding reducing people to a single aspect of their identity. Brands should celebrate the uniqueness of people's identities and the cultures they belong to by co-creating and collaborating (instead of appropriating).
Resonance: How a Brand Bonds with Consumers
Inclusion remains a powerful pathway to deepen a brand's resonance with its consumers. However, it also remains an area fraught with uncertainty, given the speed at which brands are put under fire.
Even the smallest of actions can have a significant impact. Careful consideration of spokesperson, word choice, facial expression, musical sound, and even color quality affects a brand's bond with its audiences. A 2024 analysis of advertisements via Kantar's LINK database shows that top performing ads are those in which the tone of the ad left viewers feeling confident, excited, and inspired. Uplifting and positive messages will be better received by audiences.
Another important element for consideration when it comes to driving brand resonance through inclusion is accessibility. Upcoming regulations in the EU will put additional pressure on marketers and advertisers to comply with accessibility — proactive leaders are anticipating these measures today. Conducting a thorough assessment of accessibility issues and gaps is recommended, not just for marketing messages but also for the product or service itself. Failure to properly communicate product features that increase functionality for people with unique needs, and failure to make the brand message understandable to consumers (e.g., lack of attention to hearing or seeing-impaired individuals, overly complicated messages, or lack of language options) are some of the most common mistakes made.
Inclusive Brands Are a Force for Good
Inclusion marketing isn't easy and there are certainly risks present in the market today. Yet for the brave brands that choose to navigate the inclusion landscape, quantifiable benefits await. Inclusive brands are more likely to attract and retain customers, inevitably leading to both short- and long-term growth. Inclusive brands that are conscious about the stories they put into the world are meaningfully different.
Even if it feels as though the inclusion pendulum is swinging back toward obscurity, that simply is not the reality. Inclusion is and will remain a critical element of society. It remains a pathway to growth for brands willing to stay true to their values.
Inclusive marketing is expansive marketing and the best way for marketers to future-proof their brands.
Kantar is a partner in the ANA Thought Leadership Program.
comments (1)
John Caldwell
November 22, 2024 7:45pm ET
The premise that inclusion marketing is an essential and universally beneficial strategy for brands is flawed and overlooks critical consumer-driven realities. The rejection of diversity, equity, and inclusion (DEI) initiatives is often driven from the bottom up, reflecting consumer sentiment rather than a failure of brands to communicate their values. Business decisions are fundamentally driven by consumer demand, not the agendas of marketing teams. When social initiatives lead to financial losses, businesses naturally pivot to protect their bottom line. Social agendas in marketing often become political, creating division and distracting from the primary purpose of business—to provide value to consumers and generate profit.
Consumers increasingly express fatigue and frustration with the overemphasis on DEI in advertising and media. The saturation of social agendas in commercials, television shows, and marketing campaigns alienates many who feel these messages are forced or irrelevant to their purchasing decisions. As a result, they turn away from brands that overly promote such initiatives. When businesses see a decline in sales or brand loyalty due to social marketing, they adjust or abandon those initiatives for financial reasons, underscoring that consumer preferences ultimately dictate corporate strategies.
The report on inclusive advertising, often cited to justify these efforts, overstates its conclusions. It fails to prove causation between inclusion and improved performance metrics like sales or loyalty. Marginal improvements, such as a 5% sales increase, rarely justify the costs associated with creating inclusive campaigns, especially for brands with thin profit margins. The report generalizes across industries, ignoring diverse audience preferences and overlooking successful campaigns that did not emphasize inclusion. Metrics like "pricing power" are vague and rooted in subjective surveys rather than concrete data, further weakening the argument.
Additionally, inclusion efforts often face diminishing returns. Once basic representation is achieved, further efforts may not yield proportional benefits and can come across as tokenism. While inclusion can add value in certain contexts, it is not a guaranteed driver of business success. Brands must evaluate these initiatives case by case, balancing their alignment with consumer preferences and financial realities. Ultimately, businesses succeed by meeting consumer needs, not by adhering to social or political agendas that alienate large segments of their customer base.