Gay and Lesbian Market Studies

FOR IMMEDIATE RELEASE 

Contact: Jeffrey S. Garber 
              OpusComm Group, Inc. 
              315 Highland Ave. 
              Syracuse, NY  13203 
              315.422.6250 
              jeff@opuscommgroup.com 
              www.opuscommgroup.com


Gay Purchasing Power a Significant Force, Major Study Reveals


Syracuse, New York - October 14, 2001 -- The median combined 
household income of gay couples is $65,000, nearly 60 percent
higher than the 1999 U.S. median income of $40,800, a first-of-
its-kind study reveals.  Advertisers are taking notice.  "We've 
always surmised that gay purchasing power is a force to be 
reckoned with," says Jeffrey Garber, founder of the project study.
"What was needed was a yardstick to accurately measure the impact
of gay and lesbian consumerism." 

Garber, president of OpusComm Group, Inc., in conjunction with the 
S.I. Newhouse School at Syracuse University and media/entertainment 
company GSociety, Inc., has developed the first comprehensive and 
in-depth census of the economics and buying habits of the gay and 
lesbian market. 

The Internet-based census was designed to poll gay men and lesbians
about their education, jobs, spending practices, and politics, and 
make that information available to advertisers.  "Gay men and lesbians
collectively are an important consumer constituency," according to 
Garber.  "The 2001 Gay/Lesbian Consumer Online Census will become one
of the primary tools used to educate mainstream advertisers about this
unique and widely ignored niche market." 

"A few major corporations are beginning to reap the rewards as pioneers
in this market," says Syracuse University Professor Amy Falkner, expert
in targeted advertising and how different groups use the Internet.  
"Gay and lesbian advertising is moving "out of the closet" and into 
the mainstream market." 

Nearly 6,000 U.S. respondents completed the 40 minute long census. 

The study reveals a significantly higher median income for gay 
households than the U.S. median.  More than a fifth of respondents 
reported a total combined income of $100,000 or more.  Nearly 60 
percent of gay male households and 46 percent of lesbian households 
showed a combined income in excess of $60,000. 

"This means well-heeled gay and lesbian couples, sharing two incomes 
and generally without the expense of raising children (13 percent of 
Gay/Lesbian couples have children under 18 years of age living at 
home), can plan to be actively courted in the near future by industry 
and services anxious to open up this "new" market," says Falkner. 

In findings destined to change the way advertisers cozy up to the 
affluent gay and lesbian market, the study reveals a strong tendency 
among this group to buy products or services from companies they know 
to be gay-friendly. 

"You'll be seeing many more large corporations "coming out" as 
friendly to gays, once they see what a positive image in the gay 
community can do for sales," explains Cary Gilbert, president of 
gay entertainment/media company GSociety, Inc.  "It isn't being 
deceptive or devious on the company's part.  Instead it's a matter 
of taking the opportunity to be open and positive about their 
policies and goals concerning the gay population.  That recognizing 
gay clients has a positive effect on the bottom line is a side 
benefit -- and a compelling one." 

Nearly 9 out of 10 census respondents are registered voters, and 
79.8 percent of them voted in the 2000 presidential election, as 
compared to 49 percent of the general public who voted in the 1996 
election, according to the Clerk of the U.S. Congress.   The great 
majority -- 68.8 percent -- are registered Democrats. 

"Money talks, the same in politics as in business," Garber says.  
"As the gay and lesbian economic power base becomes more widely 
recognized, we are sure to see many subtle and not-so-subtle changes
in the way the gay population is courted." 

The Census is the combined effort of three partners: 

OpusComm Group Inc., (Founder of the 2001 Gay/Lesbian Consumer Online 
Census Partnership) 

The founders of the OpusComm Group have been providing exciting and 
effective marketing, public relations and advertising to a broad range
of clients from Fortune 500 to small businesses for over sixteen years. Now, 
as one of the world's leading researchers in Gay/Lesbian consumerism, we 
provide the strategy that can guide you through implementation with unparalleled
knowledge to reach untapped markets. Our strength is in consultation with community 
sensitivity in the market planning and execution for all types of mainstream 
advertisers to target the gay/lesbian community. 
www.opuscommgroup.com 

The S.I. Newhouse School of Public Communications at Syracuse 
University -  As one of the world's leading academic and research 
institutions in the field of communications, S.I. Newhouse School of 
Public Communications at Syracuse University is leading the development
of the Census. www.syracuse.edu 

GSociety, Inc. - A media/entertainment company whose reach and 
distribution channels target the millions of gay and lesbian consumers

Media Sponsors: Advocate, Axess Promotions, Curve Magazine, Express, 
Gay Crawler, Instinct, Joey Magazine, metroG, Proud Parenting, and She
Magazine 
  
For further information contact Jeffrey Garber, president, OpusComm 
Group, at (315)422-6250 or jeff@opuscommgroup.com. 

Full highlights of this study on Income, Politics, Consumer Behavior, 
Media habits, Relationships and other findings as well as methodology 
are available at www.glcensus.org 

###

IMPORTANT NOTICE: 

IN GRANTING BROADCAST/PRINT PERMISSION TO PUBLICIZE ANY/OR ALL 
PORTIONS OF "2001 GAY/LESBIAN CONSUMER ONLINE CENSUS" INFORMATION 
PROVIDED.: 

You are authorized to quote from this report only if credited as 
follows: "A  Syracuse University, OpusComm Group, GSociety Study". 

You may also want to add: "For more information please visit 
http://www.glcensus.org" 

---------------------------------------------------------------

Advertising in Gay Press Grows

NEW YORK, NY January 13, 1998 -- The gay press was founded to give voice to an isolated community. Nearly 30 years later, Corporate America is increasingly wooing that community and its buying power.

     Advertising in gay publications is soaring with an increasing number of huge companies pitching cars, travel, computers, investments, drugs, clothings and more. New advertisers in 1997 included IBM, United Airlines and American Express.

     "In spite of the fact that a larger number (of gay publications) are free, we have a viable audience and they are brand loyal," said Bob Craig, publisher of Frontiers, a biweekly gay newsmagazine that has served Los Angeles since 1982 and expanded to San Francisco in 1994.

     Readers of gay newspapers in 10 major markets have an average individual income of $47,090, according to Simmons Market Research Bureau. That figure is more than twice the U.S. per capita income of $18,135 based on Census Bureau figures.

     Simmons also found that 94 percent of the more than 735,000 readers studied are likely to buy a product or service advertised in a gay publication.

     "In choosing somewhere, I'll go to a store that I know advertises in the paper," said Dallas resident Dennis Polk, a reader of the weekly Dallas Voice.      Advertisers say it would be foolish to ignore such potentially loyal customers.

     "We've been a longtime supporter of the gay community. They in turn are very supportive of us, which makes a heck of a lot of good business sense," said Miller Brewing spokeswoman Gina Shaffer, whose company has placed Miller Lite ads in national magazines such as the Advocate and Out Magazine.

     "To reach people you have to reach them in a wide variety of publications and advertising mediums," said Mark Smith, a spokesman for cigarette maker Brown & Williamson, which advertises its Lucky Strike brand in the gay press.

     The company's biggest competitor, Philip Morris, also pitches its top- selling Marlboro brand, as well as Benson & Hedges and Parliament, in the gay press. They are among scores of prominent brands from all types of businesses -including Nike, Blockbuster, HBO, MasterCard, Gucci, State Farm insurance and Harley-Davidson -on the pages of the nation's 175 gay publications.

     Despite the proliferation of such big names, local advertising in newspapers has remained the backbone of the gay press since its birth in the late 1960s.

     Total ad spending jumped 36 percent to $100.2 million in 1997 from a year earlier and has nearly doubled since 1994, according to a study of 138 publications by Mulryan/Nash, a New York ad agency that helps companies target gay consumers. Local newspapers accounted for more than half of the 1997 total with $56.2 million.

     While the most-advertised businesses were bars and clubs, the fastest growing category was pharmaceuticals -fueled in part by new HIV drugs, Mulryan/Nash said. Marketers included leading drug makers Merck and Glaxo Wellcome.

     Such national advertisers will continue to increase their share in the gay press as society becomes more accepting of the gay community, said Dave Mulryan, a partner in Mulryan/Nash. A perfect example, he said, was advertisers' interest in the ABC sitcom "Ellen" during the highly publicized coming-out of star Ellen DeGeneres.

     "It made the case that you won't alienate a large segment of society if you have an openly gay character," Mulryan said.

     Despite major inroads, however, there is still significant opposition by some conservatives to corporate support of the gay community. Walt Disney Co., which owns ABC, is being boycotted by the 15 million-member Southern Baptist Convention for its gay-friendly policies. Disney's chairman, Michael Eisner, told shareholders the boycott has had no discernible impact on earnings and that he will defend Disney's right to produce the entertainment it chooses, even if some might find offensive.

     Coors, the nation's third-largest brewer, had no trepidation about advertising in gay publications despite its potential to upset some shareholders, spokesman Joe Fuentes said.

     "We've been through that already," Fuentes said, noting that the company extended health benefits to partners of gay employees in 1995. "We understand that there would be some backlash."

     Ad rates tend be higher in the gay press than in mainstream publications, which are often corporate-owned and have more efficient sales practices, Mulryan said. To attract more national advertisers, many gay newspapers are banding together.

    The Simmons Market Research study was funded by the National Gay Newspaper Guild, a group of papers in 10 major markets formed in 1988 to research demographics. The guild was formed with the help of Rivendell Marketing Co., a firm that buys ad space in gay publications for major advertisers.

     In addition, a group called Window Media acquired the Southern Voice in Atlanta and the Houston Voice in 1997 under a plan to form a gay newspaper group sustained by growing national ad revenue while still focused on local news.

     William Waybourn, the founder of Window Media and former managing director of the Gay & Lesbian Alliance Against Defamation, said the Washington-based investment group wants to purchase 10 papers within five years.

     Many gay publications struggle financially because they are started primarily by activists without much capital behind them, Waybourn said.      "We're looking at making money, too, but the point is to make sure that these newspapers go well into the next century," he said.

Gay Press Emerges As Fastest Growing Print/Ad Market For Third Consecutive Year

NEW YORK--(BUSINESS WIRE)--Oct. 6, 1997-- Advertising spending in the gay press reached $100.2 million this year, a 35.9% increase over 1996, according to the fourth annual Mulryan/Nash Gay Press Report, a national study of ad spending and editorial content in the 138 gay-targeted print publications across the U.S.

"According to our calculations, the gay press has once more emerged as the fastest growing print/ad market in the U.S.," stated Dave Mulryan, partner of Mulryan/Nash. "For the past three consecutive years, gay-press ad revenues have grown faster than those in both the mainstream press and other niche markets." In comparison, he noted, ad revenues in mainstream newspapers grew just 12.9% over 1996, as reported by the Newspaper Association of America, and ad spending in mainstream magazines grew 11.2%, according to the Publisher's Information Bureau. Meanwhile, ad revenues in the Hispanic press grew 11% according to Hispanic Business News and advertising directed at African Americans grew an estimated 2.1% according to Target Market News (no print-only breakdown was available).

Meanwhile, mainstream advertisers continued to show a strong commitment to the gay press. Among the big-name, first-time advertisers in 1997 were the generally-conservative Aetna Retirement Services, American Express Financial Services, and IBM. HBO and The Sundance Channel also appeared for the first time, as did the airlines United and Continental. And in the fashion category Perry Ellis, Joe Boxer, Prada and Dolce & Gabbana all placed ads.

New Names and Top Categories

The top-ranking ad categories in the gay press remained constant for the third consecutive year. They are as follows: 1) Bars and Clubs at 19.9%; 2) Phone Services at 16.6%; 3) Classifieds at 9.5%; 4) Gay Events/Organizations/Meetings at 5.3%; 5) Retail Products and Services at 4.1%.

Heartening Changes In HIV Arena

"The one area in which we're seeing tremendous changes is HIV," said Mulryan, "and those changes are quite heartening."

According to the study, the fastest growing category this year was Pharmaceutical advertising, which -- fueled in large part by ads to introduce protease inhibitors, a new class of HIV drugs -- rose 300% over 1996 to rank second in magazines and eighteenth overall. These advertisers include Roche, Merck, Abbott, Hoffmann-La Roche, Agouron and Glaxo Wellcome.

At the same time, Mulryan noted, advertising for viaticals (the buyback of life insurance policies from the terminally ill) dropped 58.1% overall, and in terms of editorial coverage -- this is the second year the study tracks editorial content -- HIV-related news dropped 33.3% and obituaries dropped 36.4%.

"People with HIV are living longer," said Mulryan, "and the pages of the gay press -- both in terms of its revenue sources and editorial coverage -- are reflecting that positive trend."

Other Fast Growing Ad Categories

Advertising for Gay Magazines rose a notable 150% -- a trend which, according to Mulryan, shows the optimism and commitment of gay-press publishers.

Also, advertising for Records and Compact Discs rose 100%. Advertisers include Columbia/Sony Music, Virgin, and MCA.

"Record companies are wise to focus ad dollars on the gay market," said Mulryan, "since music -- as well as other entertainment -- rates well in most, if not all gay-consumer surveys."

Editorial Focus on the Arts and Entertainment

Moreover, noted Mulryan, according to editorial breakdown of the Mulryan/Nash Gay Press Report, the Arts accounted for the single largest category for coverage (22.5%), broken down further into such sub-categories as Movies (6.3%); Theater (4.6%); Music/Concert News (2.7%); Books/Writers (2.5%); and Television (2.5%). (Note: Much of the television coverage tracked during the study's April measurement period was devoted to the episode of ABC's Ellen during which the show's main character, played by Ellen DeGeneres, acknowledged her homosexuality).

Large amounts of editorial coverage were also devoted to Gay News (17.5%) -- both national and local -- and to coverage and/or listings of local Gay Organizations and Meetings (12.6%).

Disparities in Advertising vs. Editorial

One disappointment, Mulryan noted, was that advertising for other arts segments were down this year (i.e., save for Records/CDs, the small-entry presence of HBO and the Sundance Channel, and the continuing, if also small, presence of Showtime). Despite the editorial coverage spent on books, movies, concerts, etc., as well as the fact that gay consumers purchase comparatively higher in these areas, very few movie makers, book publishers, concert promoters and the like have zeroed in on the gay consumer.

"A very clear opportunity exists here," said Mulryan, "particularly since gay consumers have shown a decided preference for, and loyalty to, those brands (e.g., liquor, airlines, clothing, etc.) which are marketed directly towards them."

Overall Reach Grows

Total circulation for all gay publications also climbed in 1997 by 15.9% and is now 2,736,644, while the total number of publications (despite start-ups and closings) held steady at 138. (Note: This year HIV publications such as Art & Understanding and Poz were not counted as part of the survey's totals, in part because their focus continues to expand beyond the gay reader. Rather, they were tracked separately and are included as a sidebar).

Local Pubs Still "Backbone" of Gay Press

"The gay press, which started in a very grass-roots, community-based way, continues to be dominated by local news and advertising," said Mulryan.

Local newspapers, he cited, (which now number 93) accounted for slightly more than one-half of the ad revenue in the gay press ($56.2MM) this year. (Note: Last year, while the dollar amount was less, the percentage was approximately the same). Meanwhile, National Magazines (seven in all) and Arts & Entertainment Guides (totaling 28) evenly split almost all of the remaining revenue ($21.8MM and $21.7MM respectively).

Gays "Come Out" Younger - Gay Press Responds

Mulryan also stressed that it was the Local Arts & Entertainment Guides which exhibited the strongest revenue growth this year (up 80.8%) as well as a corresponding surge in circulation (up 105%).

"One reason for the fast-increasing popularity of Arts & Entertainment Guides," he said, "is the fact that gay men and women now tend to 'come out' at an earlier age. This, we believe, has lead to higher readership among young people -- people looking for club and concert information, shopping and dating guides, etc. Advertisers, in turn -- as evidenced by their increased ad spending in the guides -- have recognized this as an opportunity to reach the highly desirable ad target of 18 - 24-year olds."

Mulryan/Nash was formed in 1991 to help mainstream businesses target the gay market. The agency engineered groundbreaking campaigns in the gay press for Subaru, Home Access Healthcare, Agouron Pharmaceuticals, and the Netherlands Board of Tourism, as well as Broadway's Love! Valour! Compassion! and Angels in America. It also performs research and marketing for several Fortune 500 companies. --30--

CONTACT: Bill Gordon, 212/633-6139

Source: Overlooked Opinions, Jan '92

New York, NY August 20, 1996 --- Advertising in gay publications jumped nearly 20% this year over last, led by big media spenders such as Tanqueray and America Online, according to a new study.

From April 1995 to April 1996, advertising in gay print publications hit $73.7 million, a 19.6% increase over the $61 million spent in the year-earlier period, according to the Mulryan/Nash Gay Press Report.

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