by Tod Maffin
Customers are showing up for minority-owned brands—and willing to pay more for them.
In the U.S., more businesses are showcasing their minority-owned status, such as being Black-owned or women-owned.
Does it pay off?
New research says yes. Most customers recognize the challenges minority owners face, making them more likely to support these businesses, overlook mishaps, give better reviews, and even pay more for the same product.
Scientific research by Uduehi, E. and Barnes, A.J. (September 2024). The Minority Ownership Awareness Effect: When Promoting Minority Ownership Increases Brand Evaluations. Journal of Marketing. Source: Science Says newsletter.
Why customers care
According to the study's researchers, knowing a brand is minority-owned makes us aware of the structural disadvantages, like gender and racial discrimination, that minority owners face.
How much this affects us depends on our sensitivity to social inequalities.
Brands setting the standard
Google Maps lets businesses identify as minority-owned.
Miiriya serves as an online marketplace for Black-owned businesses.
SaaS brands like Calendly and Flutterwave showcase their minority ownership in their branding.
The fine print
While minority ownership can make consumers more forgiving of product or service failures, the researchers suggest it must be authentically woven into your brand story. A reactive mention, such as after making a service mistake, may backfire.
The research primarily focuses on Black-owned businesses in the U.S., so results may vary across different countries.
🎯 How This Affects You
If your business is minority-owned, make it clear in your marketing and branding. Add a note on your website, social media, ads, product packaging, menus, etc.
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The Google Ads Platform
Jyll Saskin Gales reviews what’s happened in the last month.
Today’s Other News ☑︎
Everything else that matters.
Advertising 📣
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eMarketer’s take: The merger would create the world's largest ad agency, overtaking WPP. With global digital ad spending expected to hit $1 trillion by 2028, or sooner, the consolidation will reshape the ad industry and position the combined company for greater market share. more
Search 🔗
It's not you, it's Google. Google Search experienced indexing delays yesterday, where new content was not showing the index for some sites. The issue has now been resolved. more
Copilot is now in Beta within Bing Webmaster Tools for select users. Instead of showing data in performance reports, Copilot lets you ask questions about your site and data. more
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Commerce 🛒
You can now buy an entire car on Amazon. In partnership with Hyundai dealers across the U.S., the e-commerce site lets customers browse, order, finance, and arrange delivery.
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Analytics 📊
Oracle's shares fell 7% despite a 9% revenue boost and 25% growth from its cloud computing unit, which includes AI model training services. The new Meta deal, involving Oracle’s cloud for AI agents, wasn't reflected in this quarter’s RPO, but is expected to boost it next quarter. more
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Spotted on Social 🔍
The social web’s best posts in the last 24 hours.
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