Goldman Sachs Diversity Media Spend

Part
01
of one
Part
01

Goldman Sachs Diversity Media Spend

Brands that work with the SeeHer initiative include AT&T, the Oprah Winfrey Network, and Meredith Corporation. These brands joined the initiative to pursue a common goal of increasing the accuracy of how women and girls are portrayed in media and advertising by the year 2020. A detailed overview of the research findings follows below.

Brands Working With The SeeHer Initiative

AT&T

The Oprah Winfrey Network

Meredith Corporation

  • Meredith Corporation is a leading media and marketing company that has a reach of over 175 million people in the United States including around 80% of millennial women and 86% of all U.S. women.
  • The company joined the SeeHer initiative in 2018 to increase the accuracy of how women are portrayed in media. As part of the partnership, Meredith's brands including PEOPLE, InStyle, Better Homes & Gardens, Martha Stewart Living, and Parents promoted the partnership across all platforms.
  • Meredith's brands are currently being reviewed using the Gender Equality Measure (GEM) to identify opportunities and best-in-class advertising and programming that supports women.
In 2019, JPMorgan Chase & Co spent around $2.79 billion in advertising within the United States. The company is dedicated to conducting business with diverse suppliers and it recently pledged to spend around $750 million doing business with these suppliers. Additionally, in 2019, JPMorgan's spend on diverse suppliers was over $2 billion. A detailed overview of the research findings and the research strategy follows below.

JPMorgan Chase & Co. Female and Diverse-Owned Media Ad Spend

  • According to Statista, in 2019, JPMorgan Chase invested around $2.79 billion in product and service advertising in the United States. A breakdown of this ad spend in terms of the percentage spent on female-owned and diverse-owned media companies was not available in the public domain.
  • The above figure represents an increase of over $270 million from 2018 where the company invested a total of $2.51 billion in advertising.
  • JPMorgan recently made a diversity pledge to the tune of $30 billion spread over 5 years. This money will go into advancing racial equality, inclusivity, and economic mobility among communities of color, especially the Black and Latinx communities.
  • The pledge includes a variety of loans, equity, and direct funding that will help expand homeownership for communities of color, grow Black and Latinx businesses, and improve access to banking.
  • The company aims to use $4 billion in refinancing loans to help "provide Black and Latinx Americans with lower mortgage payments and an additional $14 billion in new loans and equity investments to help finance 100,000 affordable rental units in underserved communities."
  • In addition, JPMorgan also planned to invest in a business coaching program for underrepresented entrepreneurs, provide 15,000 loans worth $2 billion to small businesses in diverse communities that are predominantly Black and Latinx, and spend an extra $750 million in doing business with diverse suppliers.

Supplier Diversity

Research Strategy:

We were able to find insightful information on the 2019 ad spend of JPMorgan Chase & Co. However, further breakdown into the percentage of the ad spend/ amount of money that was spent on female and diverse-owned media companies was unavailable in the public domain. We primarily focused our search for this information on the company's resources including its website and recent annual financial reports, statistical websites such as IBIS World and Statista, news resources such as CNN and FOX, and press release resources such as PR Newswire and Globenewswire. We attributed the unavailability of this information to the fact that JPMorgan does not segment its ad expenditure into the types/ownership of media companies that were given business.

In 2019, a total of $239 billion was spent by companies within the advertising economy of the United States. Out of this money, it was estimated that around $95.6 billion might have been spent on diverse suppliers in the marketing/advertising industry of the country. A detailed overview of the research findings and the research strategy follows below.

Female and Diverse-Owned Media Ad Budget Spend

  • According to Visual Capitalists, the United States advertising economy was worth $239 billion in 2019. Additionally, Statista estimates that the 2019 media advertising spend in the country was $240.68 billion.
  • In reference to an eMarketer report, it was expected that digital ad spending in the United States would reach $129.34 billion in 2019, accounting for 54.2% of total media ad spending.
  • In 2019, the top five advertisers by ad spend in the United States were Amazon - $6.9 billion, Comcast - $6.1 billion, AT&T - $5.5 billion, P&G - $4.3 billion, and Disney - $3.1 billion.
  • Supplier diversity programs encourage the use of "women-owned, ethnic/minority-owned, veteran-owned, LGBTQ-owned, disability-owned, and small businesses as suppliers."
  • According to a survey by the Association of National Advertisers (ANA), 75% of respondents reported that they have an overall supplier diversity strategy while 40% reported that they have a supplier diversity strategy specifically for marketing/advertising.
  • Assuming that the above percentages also reflect the overall United States advertising environment and that the organizations that have supplier diversity strategies for marketing and advertising gave a large portion of their advertising businesses to diverse suppliers, it was concluded that in 2019, at least $95.6 billion or 40% of the advertising dollars were spent on diverse advertising firms including female-owned and diverse-owned media companies.

Research Strategy:

We were able to find insightful information on the overall 2019 advertising spend in the United States. However, details on the dollar amounts spent on female and diverse-owned media companies were unavailable in the public domain. Our research was primarily focused on advertising resources such as the Association of National Advertisers, Visual Capitalist, Adage and AdWeek, statistical resources such as Statista and IBIS World, business news resources such as CNN and Bussiness Insider, and press release resources such as PR Newswire and Globenewswire. We attributed the unavailability of this information to the fact that the 2019 advertising spend in the United States was not segmented with a basis on the types/ownership of media companies that were given business.

Calculations

Using the available information and informed assumptions, we were able to estimate the amount of money that might have been spent on diverse suppliers in the marketing/advertising sector of the United States.
  • Diverse Supplier Advertising Spend = Total Ad Spend x % Spent on Diverse Suppliers
  • Diverse Supplier Advertising Spend = $239 billion x 40% = $95.6 billion.
In 2019, 4.5% of the total ad spend in the United States was aimed at advertising to multicultural consumers and diverse groups. This percentage corresponds to $27 billion in advertising dollars. Additionally, women consumers form 51% of the American population, but control 90% of household purchasing decisions. A detailed overview of the research findings and the research strategy follows below.

Ad Spend on Women and Diverse Groups

  • According to ANA, in 2019, 4.5% of the total United States marketing and advertising budget was used to target multicultural consumers/diverse groups. This figure corresponds to a little of $27 billion in advertising expenditure.
  • In 2020, ANA projects that ad spending on multicultural and diverse groups will rise to 6.3%. This figure will correspond to around $28.7 billion in advertising expenditure.
  • In 2018, spending targeting "Hispanics totaled almost $18 billion, a 5.3% increase over the previous year and far ahead of the amount of money aimed at African-Americans ($7.2 billion, up 6.1%) or Asian Americans ($722 million, up 7%)."

Brands/Companies Targeting Women with Advertising

  • Although women make up 51% of the American population, they make 90% of household purchasing decisions. Additionally, women are more engaged with advertising than men because gender-neutral ads perform 35% better with women consumers than they male counterparts.
  • In 2020, more than 300 advertisers allocated 70% or more of their Facebook advertising spend on women. However, most of them are "within the expected female-centric vertical markets such as women’s fashion brands, beauty, household goods, and baking products."
  • According to Pathmatics, out of the $1.2 million that Unilever dedicated to its 2019 Facebook advertising spend, 68% of the ads were targeted at women. In 2020, the company appears to have upped its game further with 71% of their ads targeted at women.
  • In 2019, around 37% of Nike's Facebook ads were targeted at women consumers. This figure drops to around 23% in 2020.
  • Northwestern Mutual Life Insurance, spent around $100 million on advertising in 2019 in digital, print, and national TV. The company spent 52% of its 2019 Facebook ad budget on female-targeted ads. In 2020, this figure has already dropped to 37% of the company's Facebook ads being targeted at women.

Research Strategy:

After conducting an exhaustive search in the public domain, we were unable to find information on the percentage of the total advertising dollars that was spent on targeting women consumers in 2019. Our research was primarily focused on advertising resources such as the Association of National Advertisers, Adage, and AdWeek, statistical resources such as Statista and IBIS World, business news resources such as CNN and Bussiness Insider, and press release resources such as PR Newswire and Globenewswire. We attributed the unavailability of this information to the fact that the American advertising industry does not provide segmented data on the percentage of the total advertising budget that was spent on developing ads that targeted women consumers.
Sources
Sources