-Caveat Lector-
Wed Jun 20, 2001 - Updated at 06:47 AM
Thestar.com > News
Jun. 20, 2001. 06:45 AM
Corporate interest grows in gay festival
Gays, lesbians seen as attractive demographic for businesses
Susan Pigg
BUSINESS REPORTER
VINCE TALOTTA/TORONTO STAR
YO HO HO: Rum mascot Captain Morgan greets the curious at a Pride Week
event.
Captain Morgan's on shore leave in Toronto this week - looking for a party.
And the darkly handsome rogue, known worldwide for his Captain Morgan rums,
found it in the 21st annual Pride events.
It's the sheer number of gays and lesbians in Toronto, as much as their
spending clout, that has drawn the Seagram Spirits and Wine Group and a
growing number of companies to literally jump on the Pride bandwagon. Not to
mention the thousands of spectators who will watch Captain Morgan take part
in Sunday's parade.
``We're here because it's a huge community celebration,'' said Scott
Geisler, global public relations director for Seagram Spirits and Wine
group. ``The chance to reach hundreds of thousands - maybe a million-plus
people - was too good an opportunity to pass up.''
Even The Bay got involved. A full-page ad featuring ``the girls'' - five
cross-dressers clad in flamboyant gowns in The Bay's colours - appeared in
The Star to celebrate Pride Week and the Fashion Cares gala, Canada's
largest AIDS fundraiser.
``I don't see this as being a major step. It's just part of real life,''
said Neil Fedun, senior vice president of marketing for The Bay.
``It's also a nice message for us that The Bay is moving forward. We're 331
years old, but we get it. We're relevant, we're current and we're part of
your life today.''
Twenty years after Absolut vodka became the first major corporation to
advertise and market to gays and lesbians in the United States, more
corporations are at least peeking - if not stepping - into the closet.
American Airlines, a favourite for its early marketing efforts, has a team
in Dallas that markets specifically to that community. IBM recently set up a
similar office, said Scott Seitz, a partner in New York-based Spare Parts
Inc., which helps companies market to gays and lesbians.
Author Michael Wilke, creator of the Commercial Closet Web site, a
collection of more than 500 gay-oriented commercials and ads, says such ads
hit a peak last year, with 81 gay-themed campaigns worldwide.
``Some of the companies who jumped into the market first were the companies
who could measure that it was successful - companies like the liquor
industry, where they knew their largest accounts in every city across the
States were the gay clubs,'' Seitz said.
Studies have shown strong loyalty among gays and lesbians to brands
belonging to those pioneers.
While it's impossible to know their true spending power, Seitz estimates
their income at $350 billion to $450 billion in the U.S. alone.
Seitz disputes the belief gays and lesbians earn a higher than average
income. The big difference, he says, is that they rarely have children, so
they have more disposable income.
Many advertisers reach the community through gay and lesbian publications or
through what Wilke terms ``gay vague'' ads that can be read either way.
But companies feel increasing pressure to advertise in mainstream media
using images that reflect the gay lifestyle, Seitz said.
While companies with a strong, older customer base like The Bay walk a fine
line in even appearing to market specifically to gays and lesbians, smart
executives are selling the idea as inclusive advertising, said Alan
Middleton, a professor of marketing at York University.
``It's not only the gay community itself that's important,'' he said. ``It's
the symbolism.''
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