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.
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