The power of the pink pound
Everyone has heard of the unstoppable power of the pink pound, but do companies and society truly understand the enormous amount of capital that gay people generally have behind them?
If you stop and think about it for a moment, it makes sense!
Having a child is one of the most expensive decisions you can make. Heterosexual couples spend an inordinate amount of money on their children during their lifetime. The majority of homosexual people do not have, or do not intend to have, children. Therefore, gay couples will tend to have more disposable income that they can invest or spend. A recent survey suggests that the spending power of the gay community is an estimated £70 billion per annum.
When you consider that gay people make up a relatively small percentage of the overall population, their income and spending power is considerable in strength.
However, many big companies like IKEA find themselves inundated with complaints whenever they attempt to aim their advertising campaigns towards the gay market. In 2007, IKEA launched a TV advert in USA in which two gay men played on the floor with their daughter.
Backlash from the American Family Association (AFA) ensued as spokesperson claimed, “IKEA produces dozens of pro-homosexual ads that they air on Swedish a TV. If they're going to run ads in this country, at least make those ads reflect the values of our society."
Such comments reflect the closed-minded nature of the American nation, the so-called ‘land of the free'. Whereas London and indeed the UK have embraced its homosexual population by allowing same sex couples to legally confirm their union in a civil partnership, America is nowhere to be seen on the path to sexuality equality.
The message to companies is now clearer than ever: embrace the enormity of the pink pound or face being shunned by a very influential sector of society. Advertising Manager for Attitude magazine, Alex Frieson, recently stated that "We are dealing with 21-year-olds with 31-year-old wage-packets. They are trendy, young, modern, forward-looking guys with enormous brand loyalty for companies that do something for gays."