Break the Paralysis: Commit to Inclusive Marketing.
Brands that Anchor Core Values Will Capture $6.8 Trillion in Diverse Consumer Power
Inclusive marketing stands frozen. Following a 2020 surge in diversity commitments, brands have reversed course, eliminating chief diversity officers, scaling back representation, and abandoning the communities they once courted. This retreat carries measurable costs: diverse growth audiences command $6.8 trillion in buying power, according to data presented at Advertising Week New York 2025, yet 53% of global industries score below average for representation in advertising content per XR's 2024 Global Advertising Representation Report analyzing nearly 1 million ads across 35 industries.
The business case remains irrefutable, but execution has stalled.
The Representation Gap Widens as Brands Retreat
Current advertising fails to reflect population realities. XR's 2024 report reveals only 12% of talent in ads have dark skin tones, 6% of screen time includes seniors, and 15% shows people with larger body types. Samba TV's 2025 State of Diversity TV report documents a 5% year-over-year decrease in non-white talent in popular programming to 42% overall, with persistent underrepresentation of Hispanic talent both on-screen and in ad impressions delivered to Hispanic households.
Corporate America's DEI pullback has accelerated workforce losses that undermine creative capacity. The Association of National Advertisers found diversity in marketing dropped in 2023 for the first time in years. People of color comprise 30.8% of the industry versus 32.3% in 2022. An estimated 300,000 Black women left the workforce during this period. God-is Rivera, chief strategy officer of Burrell Communications Group Worldwide, warns this exodus flattens cultural understanding: "When we think about pushing the boundaries of inclusivity, if we are losing people who can architect culture because of their connections to their communities, we're going to be flattened again."
Amazon, Target, and Walmart have publicly scaled back DEI initiatives. Target's reversal proves particularly instructive: after CEO Brian Cornell pledged to increase Black employee representation and supplier spending in 2020, the company achieved record growth with comparable sales rising 12.7% in 2021. Following its 2024 DEI pullback, Target faces declining sales, damaged consumer sentiment, and an ongoing boycott. Commitment consistency correlates directly with commercial performance.
Inclusion Drives Purchase Behavior
Three-quarters of consumers report that a brand's diversity and inclusion reputation influences purchasing decisions, according to Kantar research. By 2045, the United States will become a minority-majority country, rendering "general market" strategies obsolete. Asha Shivaji, CEO of SeeMe Index, explains: "When you start to represent this group more in your ads, in your purpose efforts and the products you create for them, your penetration is also going up. This isn't a surprise, it's a direct relationship."
Economic pressures create brand hesitation. Kearney Consumer Institute's Q2 2025 report found 80% of consumers believe shopping their values costs more, while 79% prioritize quality delivery over value expression. Yet Katie Thomas, lead of the Kearney Consumer Institute, notes this represents short-term thinking: "Consumers do have more options than ever, and they really can choose to shop by their values, and when they have the money to do so, they will do so." Loyalty built during constrained periods compounds when purchasing power returns.
Brands that commit to inclusive strategies demonstrate measurable success. Fenty Beauty launched during the last Trump administration in 2017, a period of comparable political pressure, by serving underrepresented consumers with 40 foundation shades. The brand captured market share competitors ignored and built a loyal customer base that drove substantial growth. E.l.f. Beauty's "So Many Dicks" campaign in May 2024 called for more diversity in U.S. corporate boardrooms, taking an unambiguous stance that reinforced brand values. Both E.l.f. and MAC Cosmetics have documented success from their inclusion efforts. Consistency yields commercial returns.
Current brand approaches reveal strategic gaps beyond budget concerns. Analysis from SeeMe Index demonstrates people with deeper skin tones receive one-third the screen time versus lighter-skinned talent even when brands hire diverse casting. Brands select narrow representation—one or two individuals to represent entire demographic groups—and fail to consider intersectionality. Shivaji notes: "If you look for a woman who is 55-plus, deep skin tone, large body size, she does not exist in advertising." This absence signals wasted opportunity in segments with proven spending power.
Consistency Separates Authentic Commitment from Performance
Consumers detect opportunistic inclusion immediately. Shivaji observes brands that activate around specific holidays or cultural moments without year-round presence face growing skepticism: "Consumers are really noticing today when a brand kind of flutters in and out for a certain holiday, certain moment, and it's like, Where are they for the entire rest of the year?" Inconsistency erodes trust.
Brands must define core values independent of political cycles. Rivera identifies the root failure: brands treat inclusion as trend rather than principle, making them vulnerable to abandonment when external pressure mounts. This transactional approach treats communities as expendable rather than essential stakeholders. The Q4 2025 holiday period will test brand resolve as consumers exercise heightened selectivity about where to allocate spending during a sales-critical window complicated by tariffs and supply chain disruption.
Influencer partnerships represent both opportunity and risk. U.S. brands will spend $13.7 billion on influencer marketing by 2027 versus $10.5 billion in 2025, per eMarketer projections. Danisha Lomax, chief connected community officer at Digitas North America, argues creators build loyal communities that break through marketing clutter. Yet partnerships require strategic alignment. Bud Light's collaboration with transgender influencer Dylan Mulvaney sparked conservative backlash that damaged brand perception. Authenticity demands consistency between partnership choices and broader organizational commitment.
Six Actions to Close the Representation Gap
Audit current representation against population benchmarks quarterly. Use AI-powered tools to measure skin tone distribution, age representation, and body diversity across all creative output. Set minimum thresholds: 12% dark skin tone representation is unacceptable when this demographic controls substantial buying power.
Tie executive compensation to diversity metrics in creative and workforce. Make 15% of CMO and agency partner bonuses contingent on meeting representation targets in both advertising output and marketing team composition.
Commit to year-round visibility with priority communities. Eliminate campaign-only activation. Allocate minimum 30% of annual media spend to channels and content serving diverse audiences consistently across all quarters.
Establish creator partnerships with 18-month minimum commitments. Short-term influencer deals signal opportunism. Structure multi-year agreements with creators who authentically represent target communities and align with organizational values.
Hire cultural architects from underrepresented communities into senior strategy roles. Increase people of color representation in marketing leadership to 35% by end of 2026, above the 30.8% industry average that represents decline.
Define five core values and communicate them regardless of political climate. Document which principles are non-negotiable. Make these public and reference them in quarterly stakeholder communications to demonstrate consistency.
Bottom Line
Brands frozen by political pressure forfeit $6.8 trillion in diverse consumer buying power while competitors establish authentic relationships. The 2045 demographic shift guarantees general market strategies will fail. Organizations that anchor to measurable representation goals, maintain year-round visibility, and build diverse internal teams will capture loyalty from the fastest-growing consumer segments. Target's reversal converted growth momentum into declining sales and active boycotts.
The Q4 2025 period will separate brands with conviction from those performing inclusion theater.
Representation drives penetration. Execute accordingly.
