January 30th 2025.
As more and more American companies shy away from diversity, equity, and inclusion (DEI) efforts, a new report has emerged to show the potential financial costs of such a decision. According to this report, Black consumers in America hold a staggering $2 trillion in buying power. This statistic is a testament to the growing diversity and complexities within Black America, as well as the increasing demand for representation and inclusivity in the businesses they choose to support long-term.
The consequences of not prioritizing DEI efforts are clear: companies risk losing out on the business of Black consumers. A study by Nielsen, titled "Engaging Black Audiences: How Brands Impact, Grow and Win with Inclusion," found that 67% of Black Americans are likely to seek out new brands if those businesses fail to align with causes that are important to them. This not only highlights the importance of representation and inclusivity, but also the power of consumers to drive change and hold businesses accountable.
But it's not just about spending power. Black consumers are also leading the way in digital trends and engagement. According to the report, Black audiences spend an average of 32 hours on apps and websites on smartphones and tablets, which is two hours more than the total U.S. population. This makes connecting with Black consumers a crucial aspect of business success in this digital age.
Charlene Polite Corley, vice president of Diverse Insights & Partnerships at Nielsen, emphasizes the importance of not just reaching out to Black consumers, but also connecting with them. She notes that Black consumers are drawn to platforms that foster conversation and create a sense of connection. In order to truly win over this community, businesses must prioritize engagement strategies that center around diverse Black experiences and cultural nuances.
The report also sheds light on how Black culture influences and drives current digital trends. From internet slang like "periodt," "bae," and "cap," to memes that draw from iconic Black moments and influences, Black culture plays a significant role in shaping the digital landscape. However, what has been frustrating for Black consumers is the lack of recognition and credit given to the origins of these cultural phenomena by businesses.
Given the amount of time Black consumers spend on digital media, they have essentially become the "general market" on these platforms. This presents a unique opportunity for businesses to connect with this community, rather than shy away from DEI efforts. One way to do this is by deepening partnerships with Black creators, as highlighted in the report. Additionally, podcasts are another effective way to foster connection with Black audiences, as they are among the top consumers of audio content, from podcasts to radio.
And let's not forget about the growing momentum and enthusiasm surrounding women's sports, particularly the WNBA. Star athletes like A'ja Wilson and Angel Reese are driving up engagement and interest among Black consumers, presenting another opportunity for businesses to connect with this community.
In conclusion, the key takeaway from this report is clear: businesses cannot afford to ignore DEI efforts if they want to succeed in today's diverse and digital landscape. By prioritizing representation, inclusivity, and engagement with the Black community, companies not only have the potential to tap into a $2 trillion market, but also to foster meaningful and long-lasting connections with an increasingly influential consumer group.
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