The 2013 LGBT Report. Vivid insights for reaching lesbian, gay, bisexual and transgendered consumers year-round
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1 Vivid insights for reaching lesbian, gay, bisexual and transgendered consumers year-round An Experian Marketing Services white paper
2 Foreword 2013 has been a milestone year for those lobbying on behalf of expanded rights of Lesbian, Gay, Bisexual and Transgendered (LGBT) Americans. With 12 states and the District of Columbia now formally recognizing same sex marriages and two highly anticipated rulings from the U.S. Supreme Court expected shortly, the momentum is currently on the side of those seeking greater recognition and support of LGBTrelated issues. The speed with which public attitudes have shifted towards greater acceptance of LGBT individuals and their causes has left many marketers scrambling to devise plans that are not only inclusive of LGBT consumers, but in many instances designed to overtly and publically court this influential and growing consumer segment. This report is designed to provide marketers with a glimpse into the market that is on everyone s radar. In this report, we will: Report on the growing trend of consumers identifying as LGBT Track the rise in married gay and lesbian Americans Explore household arrangements and cohabitation Examine the earnings of lesbian, gay and heterosexual Americans Portion out the amount of money spent on discretionary goods and services Look at sub-segments within the gay and lesbian communities when it comes to automotive and food lifestyles Highlight the importance of mobile in reaching this consumer segment Identify the top LGBT content websites and what visitors are looking Examine where visitors to LGBT content sites come from and where they go after For even more insights on the LGBT consumer, contact your Experian Marketing Services account manager or consumerinsight@experian.com. Page 2 The 2013 LGBT Report: Demographic Spotlight
3 Living out loud Adult Americans are increasingly likely to identify as LGBT In 2006, when Experian Marketing Services first began measuring sexual orientation among respondents to our Simmons National Consumer Study, we found that 3.4% of all non-hispanic adults self-identified as either lesbian, gay, bisexual or transgendered (LGBT), a figure consistent with what leading LGBT researchers predicted at the time. However today, 4.3% of the non-hispanic adult population self-identifies as LGBT, a figure that has risen slowly but steadily year-after-year. Younger adults have consistently been more likely to identify as LGBT, and in fact today, 5.8 percent of 18 to 34 year olds say they are either lesbian, gay, bisexual or transgendered. As a result, the adult LGBT population predictably skews towards the younger age cohorts. Specifically, 36% of LGBT adults today are aged 18 to 34 versus 26% Percent of the heterosexual of non-hispanic population U.S. in adults that age identifying range. Likewise, as LGBT, while by 20% age of heterosexual adults are age 65 and older, just 16% of LGBT adults are in this age range, though our data shows that the share of adults age 65 and older identifying as LGBT has also risen. Percent of non-hispanic U.S. adults identifying as LGBT, by age Percent of non-hispanic U.S. adults identifying as LGBT, by age 3.4% 3.6% 3.8% 3.2% 2.6% 3.4% 3.6% 3.8% 3.2% 2.6% 3.5% 3.9% 3.9% 3.1% 3.2% 3.5% 3.9% 3.9% 3.1% 3.2% 3.7% 3.7% 4.6% 4.0% 4.6% 4.0% 2.6% 3.7% 2.6% 3.7% 4.0% 4.8% 4.4% 3.6% 3.1% 4.0% 4.8% 4.4% 3.6% 3.1% 4.1% 4.5% 4.6% 3.8% 3.3% 4.1% 4.5% 4.6% 3.8% 3.3% 4.3% 5.8% 5.8% 4.3% 3.6% 3.5% 4.3% 3.6% 3.5% % ALL ALL Breakdown of LGBT and heterosexual population by age Breakdown of LGBT and heterosexual population, by age LGBT 36% 24% 24% 16% Heterosexual Breakdown 26% of LGBT and heterosexual 25% population 29% by 20% age LGBT % 24% 24% 16% Heterosexual 26% 25% 29% 20% An Experian Marketing Services white paper Page 3
4 Home and Family Gay and Lesbian Americans increasingly wed As a growing number of U.S. states pass laws recognizing same-sex marriages and civil unions, we see an increasing percentage of gay and lesbian Americans reporting that they are married. In 2007, for example, when only Massachusetts allowed samesex marriage, 8% of adult gay men and 14% of adult lesbian women said they were married. Today, 17% of gay men and 16% of lesbian women are married. During the same timeframe, marriage rates among heterosexuals fell slightly. Today, 58% of heterosexual men and 53% of heterosexual women are married. Compare that to 60% of heterosexual men and 55% of heterosexual women who were married in % Percent of adults presently married, by sexual orientation Percent of adults presently married, by sexual orientation 60% 60% 58% 55% 53% 50% 40% 30% 20% 10% 8% 17% 14% 16% 0% Gay Men Lesbian Women Heterosexual Men Heterosexual Women Page 4 The 2013 LGBT Report: Demographic Spotlight
5 Household Percent arrangements of lesbian and and cohabitation gay adults who live with zero, one, While marriage is a growing or two+ trend among adults the of LGBT the same population, sex many gay and lesbian adults (as well as many heterosexuals) live with their partners without tying the knot. Today, roughly two-thirds of lesbian women and just over half of gay men live in a household where there is one and only one adult member of the same sex. As expected, the majority of married gays and lesbians are found in these household formations, but we can expect to find many cohabitating couples in this arrangement as well. Percent Among heterosexual of lesbian 8% adults, and gay 71% adults of men and who 61% live of women share a home 18% with zero, one, with one and only one adult or two+ of the opposite adults of sex, the the same comparable sex formation most likely to contain married and 51% partnered straight couples. 23% of gay men live with 1 or more adult women 64% Percent of 41% lesbian and gay adults who live with zero, one, or two+ adults of the same sex 15% 38% of lesbians live with 1 or more adult men 23% of gay men live with 1 or more adult women 8% Gay Men Lesbian 18% Females 51% Two or more One Zero 64% 41% 15% 38% of lesbians live with 1 or more adult men Gay Men Lesbian Females 23% of gay Percent men of heterosexual adults who live with zero, 38% one, of lesbians live with 1 or more or two+ live with 1 or more adult women Two adults or more of the Oneopposite Zero sex adult men 24% of straight men live with 1 or more adult men Percent of heterosexual adults who live with zero, one, or two+ adults of the opposite sex Percent of heterosexual 13% adults who live 12% with zero, one, or two+ adults of the opposite sex 71% 16% 61% 27% 24% of straight women live with 1 or more adult women 13% Heterosexual Males 12% Heterosexual Females 24% 24% of of straight men live live with with 1 or 1 or more adult adult men 71% 16% Two or more One Zero61% 27% 24% of straight women live with 1 or more 24% adult of straight women women live with 1 or more adult women Heterosexual Males Heterosexual Females Two or more One Zero An Experian Marketing Services white paper Page 5
6 Balancing the books Married or partnered gay men have the highest household income When it comes to individual income, gay and straight men earn roughly the same amount, with gay men taking home just slightly more than heterosexual men, regardless of martial/partner status. When looking at household income overall, gay men and straight men also report nearly identical numbers with straight men edging out gay men by just $800. However, among a subset of married or partnered individuals, we observe that the household income of the typical married/partnered gay man is fully $13,400 higher than that of the typical married or partnered heterosexual man, presumably due to the combination of incomes from two men. Specifically, the average household income of a partnered gay man is $115,500 versus $102,100 for a heterosexual married/partnered man. Mean individual earnings and household income of men, Mean by individual sexual orientation earnings and household and martial income status of men, by sexual orientation and martial status Individual Earnings Income All Married/Partnered $60,000 $60,800 $62,500 $63,300 Household Income All Married/Partnered $95,000 $94,200 $102,100 $115,500 Heterosexual Men Gay Men *For the purpose of this analysis, partnered is defined as gay man whose household contains exactly two adult men or a heterosexual man whose household includes exactly one adult female. Page 6 The 2013 LGBT Report: Demographic Spotlight
7 Lesbian women often earn less than heterosexual women Overall, lesbian women have income levels that are $3,700 lower, on average, than those of heterosexual women. However, among married or partnered women, lesbians earn $900 more on average than their heterosexual counterparts. Interestingly, when it comes to household income the average among all lesbian women is $8,200 higher than that of all adult women ($94,100 versus $85,800), suggesting that household arrangements of lesbian women lead to a higher aggregate of wages earned. However, when we look at those married or partnered individuals, we see that household income among partnered lesbians falls $12,300 short of all partnered women. This is most likely caused by the inclusion of income from men. As the previous page in this report indicates, married/partnered heterosexual men earn, on average, $62,500, which is considerably higher than the average individual earnings income of $43,500 claimed by the typical married/ partnered lesbian. Mean individual earnings and household income of women, by sexual orientation Mean individual earnings and household income of women, by sexual orientation Individual Earnings Income All Married/Partnered $42,000 $38,300 $42,600 $43,500 Household Income All Married/Partnered $85,800 $94,100 $100,800 $88,500 Heterosexual Women Lesbian Women For the purpose of this analysis, partnered is defined as lesbian women whose household contains exactly two adult women or a heterosexual woman whose household includes exactly one adult male. An Experian Marketing Services white paper Page 7
8 Gay men have the highest discretionary spending per capita Income levels are important to consider when targeting consumers, but more important is determining the amount of money they have left over for non-essentials after the other bills are paid. Despite earning nearly identical salaries, gay men have lower annual household discretionary expenditures than heterosexual men. Likewise, lesbian households have fewer dollars than those of heterosexual women to spend on non-essentials. This is mostly likely due to the fact that both lesbian and gay adults tend to reside in larger cities where the cost of living can be considerably higher than average. Interestingly, when household size is brought into the equation, we see that gay males actually have higher discretionary spending per capita than heterosexual men. In fact, gay men live in households that devote $6,794 per capita annually to nonessentials, which is $753 more than what heterosexual men spend. Mean annual household spending on discretionary purchases, by gender and sexual orientation Mean annual household spending on discretionary purchases, by gender and sexual orientation Household Discretionary Spend Per Capita Discretionary Spend $17,400 $15,100 $6,041 $6,794 $16,000 $15,000 $5,751 $4,764 Heterosexual Men Gay Men Heterosexual Women Lesbian Women Page 8 The 2013 LGBT Report: Demographic Spotlight
9 Key Mindsets Food and lifestyle segments Gay men have a reputation for their attention to style and presentation and our Food Lifestyle segments indicate that s at least partially true when it comes to food. Our research shows that when compared to heterosexual men, gay and bisexual men are 59% more likely to be considered True Foodies, the segment of eaters who have the most culinary expertise, eat a variety of food, love to experiment with different cuisines and have adopted a healthy eating lifestyle. In fact, fully one-in-five gay/ bisexual men fall into this segment compared with 12% of straight men. On the opposite side of the gender divide, lesbian/bisexual women are actually less likely than heterosexual women to be True Foodies with only 16% of lesbian/bisexual women falling into this segment compared with 25% of heterosexual women. Both gay/bisexual men and lesbian/bisexual women are more likely than their heterosexual counterparts to be considered Variety on a budget, a segment that often eats on the run, yet wants food that s healthy and gourmet. For more information on the Food Lifestyle segments, click here. Food Lifestyle segmentation 14% 16% 18% 18% Gay/bisexual Men 30% 27% 18% 26% 12% Heterosexual Men 20% 20% 12% Lesbian/bisexual Women 23% 11% 11% Heterosexual Women 31% 25% 30% 21% 16% Convenience and ease Variety on a budget Reformed Traditional Weekend Cooks True Foodies An Experian Marketing Services white paper Page 9
10 Auto-Motives segmentation sheds light on communities within the community When it comes to automobiles, gay and bisexual men are noticeably more likely than heterosexual men to fall into the Cul-de-sacs and City Streets Auto-Motives segments and much less likely to be considered Rough Terrains. Lesbian/bisexual women, meantime, are fully twice as likely as heterosexual women to be categorized as City Streets. Cul-de-sacs represent practical drivers who place a higher value on comfort and function over performance, image or status when buying a vehicle. Meantime, City Streets includes drivers who see their vehicle as an extension of their identity and whose primary motivations when selecting a vehicle are image and status. Given that gay/bisexual men are over represented in each segment may seem contradictory, but, in fact, it highlights the importance of getting a more complete understanding of LGBT consumers and discovering sub-segments within the overall community. For more information on the Auto-motives segments, click here. Auto-Motives Segmentation 25% 17% Lesbian/bisexual Women 38% 15% 24% Heterosexual Women 13% 14% 9% 33% 13% 25% 17% 15% Gay/bisexual Men 13% 38% 14% 9% 24% 33% Heterosexual Men 13% Boulevards Main streets City streets Rough terrains Cul-de-sacs Page 10 The 2013 LGBT Report: Demographic Spotlight
11 Going Mobile Mobile and technology innovators Gays, lesbians and bisexuals are mobile and technology leaders. Compared with heterosexuals, gay/bisexual men and lesbian/bisexual women are more likely to be considered technology Wizards. Wizards are the consumers Experian Marketing Services has identified as those for whom technology is central to their way of life. They re enthusiastic and adventurous users of new technology and can t get enough of the latest gadgets. When it comes to mobile, both gay/bisexual men and lesbian/bisexual women are more likely than their heterosexual counterparts to be members of highly active segments from our Mobile Consumer Segmentation that are key for marketers trying to connect with mobile innovators. Specifically, gay, lesbian and bisexual adults are more likely to be considered Social Connectors, Mobile Professionals and Mobirati. In fact, lesbian/bisexual women are fully 2.2 times more likely than heterosexual women to be Mobirati, which represents those adults who grew up with cell phones and can t imagine life without them. As added proof that these consumer segments are important targets for mobile campaigns, our research shows that gay/bisexual men and lesbian/bisexual women are 33% and 22% more likely than their heterosexual gender counterparts, respectively, to have redeemed a coupon on from their cell phone. For more information on the Mobile Consumer Segmentation click here. Mobile Consumer Segmentation 5% Gay/bisexual Men 20% 18% 8% 17% 22% Heterosexual Men 22% 19% 19% 18% 8% 15% 12% 24% 4% 7% 24% 27% 23% Lesbian/bisexual Women 12% 19% 14% 11% Heterosexual Women 31% Social Connectors Pragmatic Adopters Mobirati Mobile Professionals Basic Planners Do not own cell phone An Experian Marketing Services white paper Page 11
12 Reaching LGBT consumers online What are LGBT Americans searching for? Gay and lesbian Americans have always been early adopters of the Internet, a medium that served as place to form safe communities and to access resources that may not be readily available elsewhere. Today, sites like Gay.com, Queerty.com, LogoTV.com and more are among the most popular dedicated to delivering content specifically targeting the needs and interests of the LGBT community and beyond. Experian Marketing Services identified the top 50 LGBT content sites (excluding dating sites) in order to learn more about LGBT online adults and what they re interested in. The top 10 sites appear in the table below. Top 10 LGBT content sites Rank Website Visit Share Rank Website Visit Share 1 Gay.com 15.2% 6 The Data Lounge 9.2% 2 Queerty 10.7% 7 AfterEllen.com 5.3% 3 Logo TV 9.9% % 4 Towleroad 9.3% 9 Susan s Place 2.4% 5 Advocate.com 9.3% 10 Human Rights Campaign 2.0% Looking at the search terms driving visits to these sites, it is clear that many individuals are looking for information about Rupaul s Drag Race, a popular television show that airs on Logo, a Viacom-owned network. In fact, many of the top non-branded search terms include variations of the show s name and famous host. Searches related to marriage are also driving a decent amount of traffic to these sites as are searches for celebrities, including gay celebrities, rumoured-to-be gay celebrities and gay icons and heartthrobs. Page 12 The 2013 LGBT Report: Demographic Spotlight
13 Upstream/downstream traffic Over a third of clicks directing visitors to the leading LGBT content sites come from search engines and another 17% come from social networking sites and forums. Combined these two categories of sites deliver nearly 56% of all traffic to LGBT content sites, indicating their importance in directing visitors to the content they re looking for. However, both search and social industries receive a lower share of downstream traffic from the top 50 LGBT content sites. In fact, only 10.6% of downstream traffic from LGBT content sites goes back to a search engine and 14.8% goes to a social networking site or forum. Social networking sites are still the top downstream industry for visitors to LGBT content sites, suggesting that visitors are either sharing content from the sites or are going back to their social networks for more. Other gay and lesbian sites, blogs and personal websites and multimedia sites are also all popular downstream destinations from LGBT content sites both in terms of clicks and in the fact that they are disproportionately higher downstream than upstream. Top upstream and downstream industries for top 50 LGBT content sites Upstream Industry Clicks Index to Downstream Clicks Search Engines 38.5% 365 Social Networking and Forums 17.3% 117 Gay and Lesbian 5.9% 52 Blogs and Personal Websites 5.7% 57 Services 4.5% 204 Multimedia 3.7% 60 Print 2.8% 52 Portal Frontpages 2.4% 132 Television 2.2% 56 Dating 2.1% 41 Reference 1.7% 79 Personalities 1.2% 41 Movies 0.9% 48 Broadcast Media 0.9% 36 Other 10.3% 54 Downstream Industry Clicks Index to Upstream Clicks Social Networking and Forums 14.8% 86 Gay and Lesbian 11.5% 193 Search Engines 10.6% 27 Blogs and Personal Websites 9.9% 175 Multimedia 6.1% 167 Print 5.3% 194 Dating 5.2% 245 Television 3.9% 179 Personalities 3.1% 245 Broadcast Media 2.4% 278 Services 2.2% 49 Reference 2.2% 126 Movies 1.9% 207 Portal Frontpages 1.9% 76 Other 19.2% 187 An Experian Marketing Services white paper Page 13
14 Reaching LGBT consumers on mainstream sites While reaching LGBT consumers on LGBT-focused sites is a great way to show support for the community, marketers can reach this influential audience on more mainstream sites as well. Sites like Gawker, Reddit, Twitter, The Huffington Post and others like those shown below are among the top upstream and downstream sites for visitors to LGBT content sites. These sites are likely to have high concentrations of LGBT visitors or visitors interested in LGBT content and may prove to be a safer place for marketers considering a more over plan for reaching out to LGBT consumers via mainstream media. Non-LGBT-focused sites to reach LGBT content visitors, by industry Entertainment Sites YouTube NetFlix.com HappyPlace.com Hulu IMDB Gawker MTV.com Cracked.com Daily Motion Flickr Social Networking Facebook Twitter Tumblr Reddit LinkedIn News and Media The Huffington Post Buzzfeed The New York Times CNN.com The Washington Post Page 14 The 2013 LGBT Report: Demographic Spotlight
15 Experian Marketing Services 955 American Lane Schaumburg, IL Intelligent interactions. Every time Experian Information Solutions, Inc. All rights reserved Experian and the Experian marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners. Experian is a nonexclusive full-service provider licensee of the United States Postal Service. The following trademark is owned by the United States Postal Service : ZIP. The price for Experian s services is not established, controlled or approved by the United States Postal Service. 06/2013
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