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Advertising in LGBT media reaches record high
Companies spend $223.3 million in queer publications

by Scott Piro

Queer consumers have more discretionary time and income than their straight
counterparts — making them a highly sought after purchasing market.
Ad spending in the gay and lesbian press has grown at almost three times the rate of consumer magazines over the past 10 years, according to a major annual survey released earlier this month.

Ad spending in gay and lesbian publications in 2006 reached a record $223.3 million, an increase of 5.2 percent over 2005 and an increase of 205 percent since 1996.

This information comes from the 2006 edition of the Gay Press Report, an annual survey produced by advertising agency Prime Access Inc. and gay media representative firm Rivendell Media.

During the same 10-year period, ad revenues for all consumer magazines increased by only 47 percent, translating to a compound annual growth rate of four percent for consumer magazines versus a 10-year growth rate of 11.8 percent for gay media.

Howard Buford, founder and president of Prime Access, Inc., said the report reflects how far both corporate America and gay media have evolved since 1996, a watershed year that saw Ellen DeGeneres come out on primetime television and on the cover of Time magazine.
“This year’s report confirms how, in just one decade, gay and lesbian consumers have gone from an overlooked niche to an audience that Fortune 500 companies are working overtime to reach,” said Buford. “The numbers make it clear that corporate America recognizes and values both the spending power and influence of gay consumers.”

Among Fortune 500 brands, more than 183 were active in the LGBT consumer market in 2006, up from only 19 in 1994. Currently, the most popular product categories among these Fortune 500 brands are travel, financial services, automotive, fashion and entertainment.

“Over the past 10 years, the gay market has become one of the most coveted demographics in the advertising industry,” said Todd Evans, president and CEO of Rivendell. “Gay and lesbian consumers have more discretionary time than their straight counterparts, and Fortune 500 companies and local businesses alike are committing more and more advertising dollars to reach them. Higher brand loyalty and less advertising clutter also make the LGBT market quite attractive.”

Produced annually by advertising agency Prime Access Inc. and gay media representative firm Rivendell Media, the 2006 Gay Press Report provides a unique, historical perspective on the gay and lesbian market. This year’s survey analyzed 131 individual publications targeting gay and lesbian consumers, including local and national newspapers, consumer magazines and entertainment guides.

Among other notable findings in the 2006 Gay Press Report:

• Despite a general leveling off of the housing market, the real estate category accounted for the second-highest number of advertisements in 2006 (11.6 percent of total ads), up from the number three spot in 2005.

• The combined circulation of all publications constituting the gay and lesbian press reached 3,777,488, a 10.4 percent increase over the previous year.

• Several categories showed significant ad placement increases since 2005, including events (+47.4 percent), financial services (+18.6 percent) and retail (+18.4 percent).

info: www.primeaccess.net

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