While much research is available on the spending power of the Gay, Lesbian, Bisexual and Transgender (GLBT) communities in the USA, little information is available on the South African market.
To remedy this and give advertisers and indication of the financial impact of local GLBT spend, Pink Advertising commissioned Freshly Ground Insights to conduct a survey profiling this community.
A web-based self completion methodology was employed and the sample so far comprises males and females; gay and bisexual; and a majority age group of 18 and older.
It is important to note that this is ongoing research with a growing sample and that the universe size does not give absolutes. Research will continue to be analysed on a monthly basis.
Questions arising
The question has arisen whether there is actually a difference between the gay market and, say, the housewives of Sandton.
The survey so far comprises predominantly white males.
The need to attract a broader base of the GLBT community is acknowledged. Pink Advertising plans to advertise to survey on a broader platform, making it more accessible to all.
Analysis so far has been mapped with AMPS where possible, and a preliminary data release follows.
According to Morne Ebersohn, publisher of the gay men's magazine Wrapped and head of Pink Advertising, 94.50% of the respondents in this initial phase have been homosexual males. "This is due to the questionnaire being circulated mainly in gay men's media," he says.
Demographics show that 89% of respondents are white; 4.81% Coloured; 3.78% Indian and 2.41% black. The bulk of these respondents – 46.39% - are between the ages of 25 and 34.
Education and employment
Mapped against AMPS, a gay person is 12 times more likely to have a post matric qualification that his/her heterosexual counterparts. Some 73% of respondents are employed full time, usually in the professional, managerial or administrative sectors. 18.21% are self employed.
Ebersohn highlights the fact that the respondents show an average personal income of R24,080 per month, some five times the average income in South Africa. "In many cases, we are dealing with DINKS – double income, no kids – with purchase decision making power."
Activities
While most respondents came from Gauteng (64.60%) and the Western Cape (21.65%), the slant could be seen as having been influenced by media. Mapped against AMPS, this market is 20 times more likely to attend live theatre, opera and concerts; seven times more likely to go to movies and twice as likely to eat in restaurants as their counterparts.
There is also a propensity to be more active than the average in the AMPS universe, with 45.70% participating in walking/hiking; 39.52% jogging/running; 34.02% dancing; 22.68% taking part in adventure sports like skydiving and bungee jumping and even 18.56% enjoying fishing.
"This is a health-conscious market," says Ebersohn, "who actively participate in activities that support a healthy lifestyle. Around 15% watch rugby, but there is not much appetite for boxing and wrestling." DIY activities see a participation of 38.49% of this market, and 41.24% attend a gym. Cooking for pleasure, dining out, gardening and studying part time all feature on their list of activities, and some 47.77% take work home regularly.
According to the stats, this is a highly communicative and socially active group, with homosexuals 12 times more likely to send SMSs. Braais and dinner parties are high on the social agenda; around 67% enjoy shopping for pleasure and 54.64% read books.
The music favoured by this market is varied: They are nine times more likely to listen to hard rock; five times more likely to play heavy metal on their stereos; and many favour classical and Afrikaans music.
Shopping and travel
"Gays and lesbians in South Africa are prolific consumers," says Ebersohn. "Small electrical appliances (85.22%) and household accessories (84.19%) are high on their agenda, with furniture and large household appliances following closely."
Products bought using both cash or credit are usually from Game (84.19%), Makro (73.54%), Pick 'n Pay Hyper (72.51%) and Hi-Fi Corporation (70.10%). Incredible Connection, Hyperama/House & Home, Wetherleys/Osiers, Trade Centre follow fairly closely, with all the big name furniture brands named thereafter.
"It is interesting to note that respondents to this study showed a high propensity to use cash rather than credit," says Ebersohn. "Also that most gay and lesbian South Africans spend money on technology, verifying the modern and sophisticated lifestyles this community appears to live."
Clothing shopping is across the board, from Woolworths, Edgars, Truworths and Stuttafords through to Sportsman's Warehouse, Legit and Pick 'n Pay Clothing.
Some 97% of the sample indicate that they go away on holiday, with the prime destination being Cape Town (30.93%). Around 9% choose Durban and the same number opt to go abroad. Thailand, the USA, Italy and the UK are all favourite destinations, and 5.15% get away to African game reserves.
"This indicates that one in three of our respondents visit Cape Town, with their preferred method of travel being flying and then hiring a car on arrival," says Ebersohn.
While the study is ongoing and larger groups of respondents will be encouraged, the results so far are interesting to marketers: They demonstrate that DINKS does apply in this sector; that the community is mobile; and that this is a group that appears to be reasonably recession-proof.
Thursday, November 20, 2008
PINK RAND TO BE RESEARCHED IN SA
15 August 2008
Pink Advertising will be conducting research into the gay, lesbian, bisexual and transsexual community (GLBT), the first such research to be undertaken in South Africa.
It is estimated that worldwide the GLBT community makes up 10% of the market and it is a known fact that this sector is both affluent and influential and one that increasingly attracts targeted marketing by companies eager to capitalise on pink buying power.
Wrapped publisher, Morne Ebersohn, explains according to the 2006 Gay Press Report, the total buying power of the GLBT population in the United States (US) was $641 billion in 2006, proving this is a market sector not to be ignored.
“This GLBT survey will not only reveal interesting facts, but will be a very useful research tool to be used by marketers. Already we know that in SA these individuals are trendsetters, brand conscious, loyal and have ample disposable incomes, many part of a double income household with children.”
While initial research will be to establish the size and value of the GLBT market, it is envisaged that in future focus/interests groups will be established to measure different aspects of the market such as automotive, banking and finance, fashion, travel and so on.
Ebersohn says the brand loyalty of the GLBT population, more so than their mainstream counterparts, has led advertisers to focus on this market segment, with advertising spend having grown three times the rate of straight consumer magazines over the past 10 years in the US.
“South Africa is no exception. Research conducted by In2bOut, a division of Hot Salsa Media who launched the first benchmark research conducted in South Africa in 2001, found that gay consumers are more aware of whether companies they buy from have instituted gay positive policies, such as same sex non-discrimination and domestic partner policies.”
He says a “surprise-finding” was that lesbians, who are often over looked by marketers, were found to earn (as a whole) more than gay men and heterosexual men and women.
Recently Cape Info Africa, a travel and tourism centre dealing strongly in the GLBT community and with a comprehensive database, has been approached to assist with marketing products and services to this community, from companies such as Investec Bank, Old Mutual and FNB.
“Already companies like Cape Town Routes Unlimited have identified the value of the this community in tourism and initiated a pink strategy, alongside the Wine and Golf strategies, to increase the market share of tourism to Cape Town, indicative of the value of this specific market.”
Ebersohn says to reach the GLBT community the research will be advertised at the Gay & Lesbian film festivals in Cape Town and Johannesburg, in Wrapped magazine, on gay online websites and blog sites and using various data bases.
For further information go to http://www.wrappedmag.com.
ENDS
Pink Advertising will be conducting research into the gay, lesbian, bisexual and transsexual community (GLBT), the first such research to be undertaken in South Africa.
It is estimated that worldwide the GLBT community makes up 10% of the market and it is a known fact that this sector is both affluent and influential and one that increasingly attracts targeted marketing by companies eager to capitalise on pink buying power.
Wrapped publisher, Morne Ebersohn, explains according to the 2006 Gay Press Report, the total buying power of the GLBT population in the United States (US) was $641 billion in 2006, proving this is a market sector not to be ignored.
“This GLBT survey will not only reveal interesting facts, but will be a very useful research tool to be used by marketers. Already we know that in SA these individuals are trendsetters, brand conscious, loyal and have ample disposable incomes, many part of a double income household with children.”
While initial research will be to establish the size and value of the GLBT market, it is envisaged that in future focus/interests groups will be established to measure different aspects of the market such as automotive, banking and finance, fashion, travel and so on.
Ebersohn says the brand loyalty of the GLBT population, more so than their mainstream counterparts, has led advertisers to focus on this market segment, with advertising spend having grown three times the rate of straight consumer magazines over the past 10 years in the US.
“South Africa is no exception. Research conducted by In2bOut, a division of Hot Salsa Media who launched the first benchmark research conducted in South Africa in 2001, found that gay consumers are more aware of whether companies they buy from have instituted gay positive policies, such as same sex non-discrimination and domestic partner policies.”
He says a “surprise-finding” was that lesbians, who are often over looked by marketers, were found to earn (as a whole) more than gay men and heterosexual men and women.
Recently Cape Info Africa, a travel and tourism centre dealing strongly in the GLBT community and with a comprehensive database, has been approached to assist with marketing products and services to this community, from companies such as Investec Bank, Old Mutual and FNB.
“Already companies like Cape Town Routes Unlimited have identified the value of the this community in tourism and initiated a pink strategy, alongside the Wine and Golf strategies, to increase the market share of tourism to Cape Town, indicative of the value of this specific market.”
Ebersohn says to reach the GLBT community the research will be advertised at the Gay & Lesbian film festivals in Cape Town and Johannesburg, in Wrapped magazine, on gay online websites and blog sites and using various data bases.
For further information go to http://www.wrappedmag.com.
ENDS
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