Adweek published performative
PR from the EVP Head of Advocacy at Deutsch
LA, advising how White advertising agencies can
help reduce the racial wealth gap in the US.
The self-promotional
advertorial spotlighted the Blackness in Full Bloom program launched by Deutsch
LA in 2020—which just so happens to coincide with
the year that the White advertising agency hired its EVP Head of Advocacy.
The LA heat
shield was preceded by the 2016 decision at Deutsch NY
to no
longer invest in diversity. Adding to the
culturally clueless chaos and confusion, IPG pruned Deutsch
NY in January of this year.
So, what’s the value of
advice to help Black businesses succeed coming from an arguably
failing White business—and one with a history
of questionable DEIBA+ dedication to boot?
Ad Agencies Can Help Reduce Racial Wealth Gap in America—Here's How
Since 2020, Deutsch LA has supported local businesses through Blackness
in Full Bloom program
By
Ann Howze
In
2018, a Black-owned small business accomplished an incredible feat on Black
Friday by selling $1 million of cosmetics in less than 90 minutes. The Box of
Crayons product was also featured on Oprah’s Favorite Things list… twice.
Founder Raynell “Supa Cent” Steward has since built a $50 million cosmetic
brand without traditional marketing support.
While
Steward’s success isn’t rare in the age of social media, it’s not the norm,
especially for Black-owned brands.
Growing
up in Inglewood, Calif., I would take walks with my mother and sister to our
local beauty supply store to purchase anything from shampoo to hair oil to
rainbow-colored beads for our braids. We’d then stop by the local ice cream
shop and pick out our favorite flavors for the walk home.
These
businesses served our community but weren’t a reflection of the community.
These store owners invested our money into their neighborhoods, miles and miles
away.
If
I were to take that same walk today, I’d now find a Black-owned beauty supply
store, ice cream shop, and a host of other Black-owned small businesses. While
these businesses are creating new jobs and opportunities for the community,
there is work to be done to ensure they receive the support needed to be
successful in the face of gentrification, elimination of institutional
diversity initiatives and other economic pressures.
Here’s
how ad agencies can help.
Build with the business
As marketers, we develop strategies that help companies amplify messages,
increase market share and drive sales. Our work creates connections and
longevity for the world’s biggest brands.
These skills are invaluable, and it’s one of the many reasons why Deutsch
LA created Blackness in Full
Bloom, its free brand-building program for Black business owners.
Since 2020, Deutsch LA has provided local entrepreneurs with the tools
and resources necessary to grow their brands. At a time when DEI commitments
are under siege, Deutsch LA has reinforced its commitment by entering into its
first partnership with Pharrell Williams’ Black Ambition, a nonprofit committed to closing the opportunity
and wealth gaps through entrepreneurship.
The partnership expanded Blackness in Full Bloom’s reach beyond Los
Angeles and has provided Black Ambition’s founders with free training and
resources. To date, Blackness in Full Bloom has helped over 30 Black-owned
businesses continue to build their brands.
According to a recent Brookings
study, creating and supporting more Black-owned businesses is one step
to reducing the racial wealth gap in the U.S. Black-owned businesses drive the
highest percentage increases in employees, revenue and payroll, but only make
up 2.7% of employers. The more Black-owned businesses there are, the better it
is for everyone.
Northwestern University’s Kellogg School of Management’s Gather Against
the Gap report found that
“the racial wealth gap for Black Americans remains significant, with a direct
impact on social and economic growth in the United States.” The median wealth
for Black households is roughly $20,000 compared to about $180,000 for white
households.
So while the number of Black-owned businesses grew between 2017 and 2021,
the overall share remained disproportionately low relative to their share of
the U.S. population.
The role of ad agencies
In addition to internal programs like Blackness in Full Bloom,
advertising agencies can also provide support by:
1. Evaluating supplier diversity: Create opportunities to support Black-owned businesses
within procurement processes. Whether it’s as basic as coffee for the office or
multi-pronged like allocating ad dollars with media companies, the intent shows
a commitment to financial parity and equity. And the investment goes beyond
promotion. This approach helps grow brands in a language that speaks to us all:
dollars.
2. Leveraging relationships: We all know someone who knows someone. It’s time we use our professional
and personal resources to connect founders to key decision-makers who can help
these businesses grow and thrive.
3. Utilizing in-house resources: The most talented marketing professionals are housed
within our agencies. It’s time we task small teams with implementing those
brilliant yet shelved creative ideas in service of these businesses.
4. Spreading the word: Use your agency’s social channels to spotlight some of your favorite
businesses, help raise their visibility and provide free marketing,
particularly since many have low or no marketing budgets.
Best-in-class
Despite the undoing of diversity initiatives in corporate settings and
beyond, Google’s annual Black-owned
Friday campaign is one example of how marketers leverage craft to
support Black brands through culturally relevant content, marketing toolkits
for businesses and technology (via shoppable content).
Walmart’s Black &
Unlimited marketing platform is another great example that supports
founders and introduces innovative products to store shelves, a significant
feat for any business. The initiative plays a role in sharing the inspirational
stories of entrepreneurs and the creativity of Black creators.
In 2020, Groupon searches for “Black-owned” increased nearly 400%,
according to a survey by
Groupon and the National Black Chamber of Commerce. When the excitement faded
just a few months later, so did searches and revenue.
The shift we’re witnessing around diversity efforts is also happening
with Black-owned businesses. By educating ourselves, leveraging our innate
knowledge and resources and encouraging decision-makers to assist in
eliminating systemic inequities, we help contribute to a more just society with
no racial wealth gap.