Why diversity still matters in the digital age.

The emergence of the digital age is challenging many companies to adopt new strategies and rethink their marketing approaches.  When companies don’t grow with technology, they will begin to fall behind.  With the changes in the market, is diversity and inclusion still valued, especially in the digital age?  What are the implications for corporations that don’t uphold the values of creating inclusive advertisements and make an effort to hire diverse teams?

Whether it is on social media, in advertisements, or in influencer content, representation is everywhere.  Audiences notice almost immediately whether they are represented and if it is authentic.  People want to see themselves reflected in advertisements, and this requires the industry to be more thoughtful about the content it produces.  A lack of representation can create a disconnect with companies’ core audiences, as consumer activism continues to rise year over year.

Consumers are more socially aware than ever before, with a majority using their purchasing power as a form of activism.  The new group of decision-makers is Generation Z, which is historically the most diverse group in the United States, with 50% of the overall population being non-white.  By the year 2045, the majority of the United States population will be previously considered minorities.  The reason these demographics should matter to marketers is that 71% of Generation Z consumers expect brands to promote diversity and inclusion, and they are 59% more loyal to brands that commit to inclusivity.  The most vital finding is that 90% of consumers say representation matters.  Brands build trust with their consumers through authentic content that aligns directly with their business values and represents their core consumers in a realistic way.

Although there has been a significant increase in industry diversification in recent years, much work remains to be done. Only 23% of Chief Marketing Officers are people of color, while 67% of Senior Marketing Roles are held by white professionals.  However, what are the business implications of having or not having diverse teams?  Ethnically diverse leadership teams outperform financial goals by almost 36%, gender-diverse leadership teams by 25%, but when teams have limited representation in their leadership, they underperform goals by 66%.

More statistical evidence of the relationship between diversity and marketing is shown in the accompanying infographic.  The goal of the infographic is to highlight how diversity affects consumer trust and loyalty, ethnic gaps in the industry, and the impacts on financial performance.  In today’s world, visibility is important, and it creates accountability.  Ads, posts, and brands can go viral at any time thanks to consumers’ accessibility to social media.  Marketers who prioritize inclusion are better positioned to make lasting connections with their consumers, avoid backlash, and achieve long-term success.  Overall, diversity isn’t an option but a requirement for brands that operate in a digitally connected world.