LGBT Diversity within the LGBT Community

LGBT Community Survey® U.S. Overview Report 7th Annual Edion

Enre contents © Community Markeng, Inc. • San Francisco-based, LGBT Owned/Operated company founded in 1992 serves clients throughout the USA, Canada, Europe, Australia and Japan • 20+ years of LGBT consumer research, strategic consulng, markeng planning, communicaons, and execuve training • Dedicated research panel of 70,000+ LGBT consumers • Online surveys, focus groups, virtual focus groups, telephone surveys, intercepts, MROCs, IDIs and other methodologies • The CMI team produces the Annual LGBT Markeng Conference in New York City, and speaks at numerous conferences throughout the year. • Community Markeng, Inc. is an NGLCC Cerfied LGBT Owned Business Enterprise

LGBT Market Research | NYC April 24, 2014

Research, development, communicaons and markeng strategies. Proudly serving industry leaders since 1992 CMI’s Research Clients Include…

3 LGBT Market Research | NYC April 24, 2014

CMI’s Annual LGBT Community Survey connues to be one of the most comprehensive studies available focusing on LGBT consumers. In this presentaon, we report the results in a number of different ways, slicing the L G B and T in different ways depending on the queson. The possibilies are endless, as CMI’s large sample enables us to deeply understand the similaries and differences within the LGBT community.

Who Did We Talk To? How Did We Talk To Them?

› Over 30,000 total respondents across more › 15 minute online survey conducted in May - than 100 countries. June 2013.

› This representaon focuses on U.S. data for › Our survey was made available through an over 10,000 self-idenfied gay and bisexual email invitaon to survey panelists, as well as men, over 4,000 lesbian and bisexual women on the websites, email lists, and and over 400 transgender community publicaons of our 180+ partners. members. In addion we report on Canada data for over 1,300 LGBT community › Our sample reflects the readership/ members, over 400 of which completed the membership of this broad range of LGBT survey in French media outlets, organizaons and events. This means that the results summarized here are › Respondents were recruited from CMI’s highly representave of consumers who are proprietary research panel and 180+ LGBT interacng with the LGBT community. media outlets and partner organizaons.

4 WHAT WE’LL TALK ABOUT TODAY

DEMOGRAPHICS

WHAT INFLUENCES THEM

HOW DO YOU REACH THEM DEMOGRAPHICS 1 Composion of LGBT Households How Many and How Much?

• 4-5% • $790 B LGBT Market Research | NYC April 24, 2014

Why include LGBT in your mulcultural iniaves?

• Loyalists and Influencers are a “badge” and talked about. A lot.

• That $790 Billion in Spending Power (1/3 the Hispanic population but almost as much $!)

• Easy Communications Underserved, easily and inexpensively targeted

• Responders React positively to LGBT : ¾ will buy a product from a company advertising appropriately to them.

• Over Indexers On key Personal and Health Care Products: Skin care, Oral Care, Sleep medication, Hair care, Allergy Sufferers, Natural Products, Pain medication.

Data provided by our friends at Johnson & Johnson

8 LGBT Households: Composion (courtesy of Prudenal Financial) LGBT Family Life includes children, pets, parents and roommates. Only 22% live alone.

9

Base: n=1,401 total sample WHAT INFLUENCES 2 THEM Brand Atudes & Purchase Behaviors Brand Atudes • are movated more by trust and quality over brand names, and they’re willing to pay more for it. • And for brands that get it right, LGBTs are much more likely to become advocates and share with their friends.

Atudes About Brands & Shopping

Index vs. Nat’l Index vs. Nat’l Gay Men Avg., Men Lesbians Avg., Women If a company or brand impresses 132 me, I will make a point of telling 64% 139 65% friends about it

I'll pay more for a product made by 154 129 a company I trust 62% 58%

Price is more important to me than 107 75 brand names 32% 30%

It is generally worth paying extra 26% 126 18% 98 for top-of-line or cung edge

Brand name is the best indicaon 15% 8% of quality 57 49

I am influenced by what's hot and 15% 7% what's not 135 51

Base: Gay Men n=10,963; Lesbians n=1,976

11 Brand Atudes • LGBTs are movated more by trust and quality over brand names, and they’re willing to pay more for it. • And for brands that get it right, LGBTs are much more likely to become advocates and share with their friends.

Atudes About Brands & Shopping

Index vs. Nat’l Index vs. Nat’l Gay Men Avg., Men Lesbians Avg., Women If a company or brand impresses 132 me, I will make a point of telling 64% 139 65% friends about it

I'll pay more for a product made by 154 129 a company I trust 62% 58%

Price is more important to me than 107 75 brand names 32% 30%

It is generally worth paying extra 26% 126 18% 98 for top-of-line or cung edge

Brand name is the best indicaon 15% 8% of quality 57 49

I am influenced by what's hot and 15% 7% what's not 135 51

Base: Gay Men n=10,963; Lesbians n=1,976

12 Brand Atudes • Brand loyalty is a known feature of LGBT consumers; but among LGBT parents, price trumps brand.

Atudes About Brands & Shopping

LGBT Parents All LGBTs Without Children

If a company or brand impresses me, I will make a point of telling 67% 62% friends about it

I'll pay more for a product made by 61% a company I trust 59%

Price is more important to me than 32% brand names 37%

It is generally worth paying extra 20% 24% for top-of-line or cung edge

Brand name is the best indicaon 7% 13% of quality

I am influenced by what's hot and 8% 13% what's not

Base: LGBT Parents n=730; All LGBTs Without Children n=18,375

13 Brand Atudes • Brand loyalty is a known feature of LGBT consumers; but among LGBT parents, price trumps brand.

Atudes About Brands & Shopping

LGBT Parents All LGBTs Without Children

If a company or brand impresses me, I will make a point of telling 67% 62% friends about it

I'll pay more for a product made by 61% a company I trust 59%

Price is more important to me than 32% brand names 37%

It is generally worth paying extra 20% 24% for top-of-line or cung edge

Brand name is the best indicaon 7% 13% of quality

I am influenced by what's hot and 8% 13% what's not

Base: LGBT Parents n=730; All LGBTs Without Children n=18,375

14 HOW DO YOU

REACH THEM MOST 3 EFFECTIVELY? • Media Usage; Interacon With Adversing, Charies • Best Pracces

LGBT Market Research | NYC April 24, 2014

Interacon with Adversing • Engagement with Facebook (both business pages and ads) connues to be very strong among LGBTs, aer overtaking tradional banner ads last year.

In the past week, have you... ?

Gay Men Gay Men Gay Men Lesbians Lesbians Lesbians 18-29 30-44 45-59 18-29 30-44 45-59

Clicked on a website banner ad 35% 32% 35% 33% 22% 24%

Clicked on a Facebook ad 31% 32% 31% 30% 30% 30%

Scanned a "tag" with smartphone 21% 20% 10% 10% 11% 7%

Clicked on a mobile app ad 19% 16% 11% 8% 9% 7%

Forwarded an ad to a friend 12% 14% 13% 11% 12% 11%

Base: Gay Men 18-29 n=1,562, 30-44 n=2,993, 45-59 n=3,779; Lesbians 18-29 n=588, 30-44 n=1,113, 45-59 n=1,185

16 LGBT Market Research | NYC April 24, 2014

Media Consumpon Gay men are consistently more likely to use a variety of media compared to lesbians, especially LGBT mobile apps. However, lesbians are more likely than gay men to read LGBT email newsleers. In the past week, have you read, viewed, or listened to…?

GAY MEN LESBIANS LGBT websites / 67% 58% Network / cable TV 65% 57% Mainstream websites / blogs 57% 46% Mainstream general newspapers 55% 46% LGBT pubs for my city or region 50% 42% Mainstream magazines 43% 34% LGBT email newsleers 41% 45% Mainstream radio 41% 39% LGBT naonal magazine(s) 38% 30% Streaming video on computer 38% 30% Alternave newspapers 29% 26% LGBT mobile apps 25% 6% Mainstream email newsleers 24% 21% LGBT-dedicated TV shows 23% 16% Satellite radio 23% 17% Podcasts 14% 13% LGBT radio 11% 8%

Base: Gay Men 10,262; Lesbians n=3195

17 LGBT Market Research | NYC April 24, 2014

Media Consumpon Comparing bisexual and transgender media consumpon to that of gay men and lesbians on the previous slides, disncons become apparent. For example, transgender community members are more likely to interact with LGBT websites/blogs.

In the past week, have you read, viewed, or listened to…?

Bisexual Men Bisexual Women Transgender LGBT websites / blogs 58% 67% 70% Network / cable TV 54% 48% 45% Mainstream websites / blogs 51% 62% 55% Mainstream general newspapers 46% 36% 42% LGBT pubs for my city or region 39% 30% 48% Mainstream magazines 33% 27% 24% LGBT email newsleers 36% 32% 52% Mainstream radio 41% 37% 36% LGBT naonal magazine(s) 26% 18% 23% Streaming video on computer 40% 48% 44% Alternave newspapers 31% 23% 32% LGBT mobile apps 17% 3% 8% Mainstream email newsleers 23% 19% 20% LGBT-dedicated TV shows 15% 13% 17% Satellite radio 16% 12% 14% Podcasts 16% 15% 13% LGBT radio 9% 5% 10%

Base: Bi Men n=587; Bi Women n=932; Transgender n=422

18 Smartphone Ownership • Ownership among gay consumers has accelerated at a faster rate compared to the naonal average and is now nearly ubiquitous, especially for gay men • Smartphone ownership among gay men and lesbians is double the naonal average.

2011 2012 change

Gay Men 68% 91% +23 Lesbians 60% 82% +22

Nat’l Average* Men 39% 46% +7 Women 31% 45% +14

Base: Gay Men n=10,963; Lesbians n=1,976; U.S. Gen Pop Males n=150; Females n=150 *Source: Pew Research Center’s Internet & American Life Project; May 2011 (n=2277) & Sept 2012 (n=2253)

19 Technology Ownership • Gay men and lesbians are avid tech users and are more likely to own a variety of devices – especially iPhones and iPads – compared to their straight counterparts.

Which of the following do you own? Total LGBT Index vs. Nat’l Average Gay Men Digital camera 112 Lesbians iPhone 174

Android smartphone 134

iPad 161

E-reader (Nook, Kindle, Sony, etc.) 106

Digital camcorder (Flip, HD, etc.) 75

iPod Touch 106

Blackberry smartphone 67

Other WiFi / HotSpot enabled device 130

Android tablet 57

Windows smartphone 85

Base: Gay Men n=10,963; Lesbians n=1,976

20 Technology & Lifestyle • LGBTs – especially gay men – are more likely to say they rely on technology to help manage their hecc lifestyles • And, gay men (especially 18-29’s) are early adopters of new tech products within their networks

Atudes About Technology & Lifestyle Index vs. Nat’l Index vs. Nat’l Gay Men Avg., Men Lesbians Avg., Women I carry my cell phone or PDA 79% 184 79% 132 everywhere I go

Technology helps make my life 59% 144 58% 109 more organized

It is important to juggle various 152 122 tasks at the same me 50% 47%

I am so busy, oen I can’t finish 193 131 everything I need to in a day 33% 35%

I'm among first of my friends to try new technology products 27% 133 18% 73

Especially true for younger gay men, age 18-29 Base: Gay Men n=10,963; Lesbians n=1,976

21 LGBT Market Research | NYC April 24, 2014

Involvement in Charies & Non-Profits Nearly half of all gay/bi men and lesbian/bi women contribute to a charity or non-profit at least annually, while those in the transgender community are more likely than L, G or B to volunteer for one or more non-profits.

Which of the following apply to you personally?

54% Lesbians Gay / Bi Men 49% / Bi Women 47% 46% 42% Transgender

33% 30% 27% 24% 25% 22% 22% 21% 17% 15% 15% 14% 11% 10% 8% 7%

I make cash donaons I volunteer for one or I purchased cket(s) to I make cash donaons I use the services of I am employed by a I included asset to one or more more non-profits an LGBT fundraiser to one or more one or more non- non-profit donaon in my will or charies / non-profits gala charies / non-profits profits trust annually monthly

Base: Gay/Bi Men n=10,741; Lesbians/Bi Women n=4,033; Transgender n=418

22 LGBT Market Research | NYC April 24, 2014

Just a sampling of the hundreds of LGBT community organizaons… Association of Gay & Lesbian Psychiatrists! Gay & Lesbian Medical Association! Association of Gay & Lesbian Psychiatrists! Lesbian and Gay Psychotherapy Association! Gay/Straight Dental Alliance! National LGBT Cancer Project! Out with Cancer! Lesbian and Gay Veterinary Medical Assn.! SAGE, Service & Advocacy for GLBT Elders! United Lesbians of African Heritage! GMHC! amfAR! PFLAG! Gay and Lesbian Sports Association! Gay Officers Action League (GOAL)! Int’l Association of Gay & Lesbian Bridge Players! Int’l Association of Gay Square Dance Clubs! InterPride (Lesbian and Gay Pride Coordinators)! National Lesbian & Gay Journalists Association! Reaching Out MBA LGBT Conference!

23 LGBT Market Research | NYC April 24, 2014

“LGBT?” Mean what you say. Bisexual and transgender-inclusive?

Transgender and bisexual community events are oen overlooked by many sponsors; provides opportunity to be first to market.

24 LGBT Market Research | NYC April 24, 2014

“LGBT?” Mean what you say. Bisexual and transgender-inclusive?

25 LGBT Market Research | NYC April 24, 2014

Involvement of Non-LGBT Friends & Family in LGBT Issues General awareness and polical support of LGBT issues is parcularly strong among non-LGBT close friends (two-thirds or higher). Non-LGBT family members are about half as likely (or less) to be viewed as showing support for a wide range of LGBT issues.

How involved are your close friends and family in LGBT rights, polics, adversing, etc.? In general, would you say that your non-LGBT close friends and family...

Are aware of LGBT current events, rights issues, and social and 71% polical challenges 40%

Vote to support LGBT or LGBT-supporve candidates and iniaves 66% 36%

Vote to oppose an-LGBT candidates and iniaves 55% 33% Take acon, like signing a peon or wring government 51% representaves, to support LGBT causes 22% Close non-LGBT friends Intenonally avoid or boyco companies that are an-LGBT 42% 19% 32% Intenonally make purchases from LGBT-friendly companies 12% Non-LGBT family members 29% Make donaons to LGBT causes 11% 28% Aend LGBT non-profit galas or other events 9%

Read LGBT media (publicaons, websites, etc.) 24% 7% Among Total LGBT 19% (no differences across groups) Belong to LGBT organizaon(s) 5%

Base: Total LGBT n=15,583

26 LGBT Market Research | NYC April 24, 2014

Response to Terms in Corporate Markeng LGBT is the most popular term among both gay men and lesbians. GLBT connues to loose favor over me, even among gay men. tests quite poorly, but the inclusive LGBTQ is gaining popularity, especially among women.

How do you feel about each term when you see it used by a corporaon? (% Favorable) GAY MEN LESBIANS LGBT 77% 87%

Gay & Lesbian 77% 71%

Gay-friendly 66% 69%

Lesbian & Gay 60% 72%

GLBT 59% 51%

Rainbow (image) 56% 66%

Gay-welcoming 52% 54%

LGBTQ 45% 64%

Everyone-welcoming 41% 49%

"Rainbow" (word) 28% 38%

Queer 16% 23%

LGBTQQIA 10% 18%

Base: Gay Men n=10,233; Lesbians n=3,223

27 LGBT Market Research | NYC April 24, 2014

Response to Terms in Corporate Markeng Not surprisingly, bisexual men and women and transgender community members do not respond favorably to just “gay and lesbian.” LGBT and LGBTQ are the preferred terms in the bisexual and transgender communies.

How do you feel about each term when you see it used by a corporaon? (% Favorable) Bisexual Men Bisexual Women Transgender LGBT 70% 78% 76%

Gay & Lesbian 52% 39% 33%

Gay-friendly 57% 45% 39%

Lesbian & Gay 43% 38% 33%

GLBT 56% 46% 48%

Rainbow (image) 53% 55% 59%

Gay-welcoming 46% 33% 31%

LGBTQ 51% 75% 72%

Everyone-welcoming 54% 54% 56%

"Rainbow" (word) 31% 28% 36%

Queer 23% 35% 38%

LGBTQQIA 22% 36% 42%

Base: Bi Men n=604; Bi Women n=951; Transgender n=423

28 LGBT Market Research | NYC April 24, 2014

Response to Terms in Corporate Markeng Not surprisingly, bisexual men and women and transgender community members do not respond favorably to just “gay and lesbian.” LGBT and LGBTQ are the preferred terms in the bisexual and transgender communies.

How do you feel about each term when you see it used by a corporaon? (% Favorable) Bisexual Men Bisexual Women Transgender LGBT 70% 78% 76%

Gay & Lesbian 52% 39% 33%

Gay-friendly 57% 45% 39%

Lesbian & Gay 43% 38% 33%

GLBT 56% 46% 48%

Rainbow (image) 53% 55% 59%

Gay-welcoming 46% 33% 31%

LGBTQ 51% 75% 72%

Everyone-welcoming 54% 54% 56%

"Rainbow" (word) 31% 28% 36%

Queer 23% 35% 38%

LGBTQQIA 22% 36% 42%

Base: Bi Men n=604; Bi Women n=951; Transgender n=423

29 LGBT Media and Sponsorship Makes an Impact • Companies adversing in the LGBT media and sponsoring LGBT charies favorably influences 70% to 80% of LGBT consumers

When a company adverses in LGBT media or sponsors LGBT charies, has it influenced your purchasing decisions? Past 12 Months

Adverses in LGBT media Sponsors LGBT charies

Strong Influence Some Influence

Gay Men 31% 48% 39% 40%

Lesbians 39% 45% 48% 37%

Base: Gay Men n=10,963; Lesbians n=1,976

30 LGBT Market Research | NYC April 24, 2014

Terminology Maers in the LGBT Community

OK: LGBT, gay, lesbian, partner, husband /wife marriage equality sexual orientaon, gender identy Not OK: sexual preference, alternave lifestyle, your friend, those people, that market, homosexual, gay marriage Cauon: queer, lifestyle, GLBT, same-sex marriage

31 LGBT Market Research | NYC April 24, 2014

Response to Common Terms in Consumer Research

Marital Status Single Married Divorced

32 LGBT Market Research | NYC April 24, 2014

Response to Common Terms in Consumer Research

Marital Status Single Married Civil Union/Domesc Partnership Living together, no legal recognion Divorced

33 LGBT Market Research | NYC April 24, 2014

Response to Common Terms in Consumer Research

Gender Male Female

34 LGBT Market Research | NYC April 24, 2014

Response to Common Terms in Consumer Research

Gender Identy Male Female Gender queer Transgender Other

35 LGBT Market Research | NYC April 24, 2014

Response to Common Terms in Consumer Research

Sexual Orientaon Heterosexual Homosexual

36 LGBT Market Research | NYC April 24, 2014

Response to Common Terms in Consumer Research

Sexual Orientaon Heterosexual Gay Man Lesbian / Gay woman Bisexual Other Prefer not to state

37 LGBT Market Research | NYC April 24, 2014

Response to Common Terms in Consumer Research CMI’s “all-inclusive” approach:

Do you idenfy as…? (Please select all that apply) Lesbian or Gay Woman Gay man Bisexual woman Bisexual man Transgender Queer Quesoning Intersex Heterosexual / straight man Heterosexual / straight woman Other

38 LGBT Market Research | NYC April 24, 2014

Best Pracces: Get Your House in Order For Corporaons, “LGBT-Friendly” Means Appropriate Personnel Policies and Communicaons

• Nondiscrimination based on sexual orientation and gender orientation included in company hiring policies • Treat your employees’ hetero spouses and same-sex partners the same way when determining employee benefits • Include LGBT sensitivity issues in your sales and customer service training • Involve your LGBT employees in outreaching to the community • Participate in community involvement programs • Advertise in the LGBT media • Use LGBT-inclusive imagery and messaging in mainstream ads and communications • Become members of LGBT organizations like NGLCC and Out & Equal • Qualify for the HRC Corporate Equality Index

39 39 The LGBT Community represents a “slice” of the enre world populaon. Every interest, every culture, every profession, etc.

40 www.CMI.info Thank you!

Thomas Roth, President Community Markeng, Inc. 584 Castro St. #834 • San Francisco, CA 94114 Tel +1 415/437-3800 • Fax +1 415/552-5104 tom@CommunityMarkengInc.com

Community Markeng, Inc. is an NGLCC Cerfied LGBT Owned Business Enterprise.

About Community & Insights: The facts are plain: As a “niche market segment,” gay men and lesbians have a significant amount of disposable income. Most critically, their dollars go to product and service suppliers that recognize their unique buying motivations and preferences, and offer them differentiated value.

Community Marketing, Inc. (CMI) has been helping a wide variety of industry leaders master the subtleties of this market since 1992. Our unique and specialized services are based on 20+ years of experience and case studies, and include market research (online surveys, focus groups, intercepts, interviews, advisory boards, etc.), with our proprietary panel of 70,000+ LGBT consumers; strategic consulting; marketing planning, and marketing plan implementation/management. We produce custom, on-site training sessions, develop conferences, symposia and webinars, and speak at industry events.

Whether your organization is just learning about the market, or is updating its strategy, Community Marketing & Insights can accelerate your plans, reduce your risks and deliver measurable results. Because the LGBT community comprises a “slice” of the world’s population, there is no singular “gay market.” You’ll find singles, couples and families in every age and ethnicity. And you’ll find a world of diverse interests. CMI’s proven, powerful portfolio of services helps deliver your targeted markets.

Community Marketing & Insights has earned its position as the global leader in LGBT market research and development. Through the company’s tireless efforts, “doors have opened” around the world for gay and lesbian consumers. We have helped grow LGBT market recognition through research, media relations and education; and have brought opportunities to many of the world’s leading marketers.

CMI Community Marketing & Insights projects and training include: • ABSOLUT (Pernod Ricard) • Aetna Insurance • American Cancer Society • Blue Cross/Blue Shield • Chicago History Museum • E. & J. Gallo Winery • Esurance (an Allstate Company) • Gilead Pharmaceuticals • Hyatt Hotels & Resorts • Japan Air Lines • Japan National Tourism Organization • Kaiser Family Foundation (> Than AIDS campaign) • Kimpton Hotels & Restaurants • MetLife • MillerCoors Brewing Company • NYC & Co. • Prudential Financial • Switzerland Tourism • Target Brands • U.S. Government: Census Bureau, and HUD (Housing & Urban Development) • Visit Philadelphia • Wells Fargo Bank • Wyndham Vacation Ownership And many others

Community Marketing, Inc., 584 Castro St. #834, San Francisco CA 94114 USA • +1 415/437-3800 • www.CommunityMarketingInc.com

CMI’S LGBT CONSUMER RESEARCH PANEL 2013-14

SAMPLE DEMOGRAPHICS OF USA LGBT PANELISTS

DID YOU KNOW…? 48 MEDIAN AGE Gay men and lesbians own more homes and cars, travel more, spend more on electronics, and have the largest amount of disposable income of any 47% LIVE WITH PARTNER niche market. And it’s a sizeable niche: LGBT consumers make up 5% or more of the U.S. consumer market. Community Marketing & Insights will 55% COLLEGE GRADUATES help you connect with this influential demographic. 68% ARE EMPLOYED CMI’S LGBT CONSUMER PANEL: WHAT MAKES IT UNIQUE? 60% HHI >$50K

• Accurate, targeted market intelligence 6% PURCHASED A HOME IN THE PAST Utilizing quantitative and qualitative market research methodologies, 12 MONTHS Community Marketing & Insights helps companies better understand and 7% PLAN TO PURCHASE A HOME IN THE NEXT more effectively reach the LGBT community. Our consumer panel provides 12 MONTHS insights through online surveys, focus groups, intercepts and more. 39% PURCHASED A SMARTPHONE IN THE PAST • The largest, most representative panel 12 MONTHS With over 20 years in business, Community Marketing & Insights has 24% PLAN TO PURCHASE A SMARTPHONE IN THE developed a research panel of more than 70,000 LGBT consumers. We’ve NEXT 12 MONTHS partnered with media outlets and LGBT-oriented organizations and events throughout the country and around the world to recruit a qualified panel that 39% DRINK WINE WEEKLY is geographically representative of the LGBT population. 39% DRINK BEER WEEKLY 45% DRINK SPIRITS OR COCKTAILS WEEKLY • Candid responses, honest feedback As an LGBT-owned and –operated firm, we’ve established trust with our PAST 12 MO. PURCHASES panelists. We speak their language and know how to communicate effec- 40% MAJOR VACATIONS tively with them. As a result, our panelists are willing to talk with us frankly 18% AUTOMOBILE and frequently, even about sensitive issues. 39% SMARTPHONE 19% LAPTOP COMPUTER • Community Marketing & Insights experience & expertise 23% HDTV Since 1992, Community Marketing & Insights has provided market research, strategic consulting and marketing planning services to a wide variety of 30% FURNITURE clients. We’ve provided LGBT consumer intelligence to numerous market 22% TABLET COMPUTER leaders like Wells Fargo Bank, Target Brands, Prudential, ABSOLUT Vodka, 63% PERFORMING ARTS TICKETS Travelocity, MillerCoors Brewing Co., Japan National Tourism Organization, 15% MAJOR KITCHEN APPLIANCES E&J Gallo Wineries, OraSure Technologies, Chicago History Museum, 12% E-READER Tourism Toronto, MetLife, Hyatt Hotels & Resorts, and many companies, 25% LGBT FUNDRAISING GALA TICKETS as well as the American Cancer Society, Kaiser Family Foundation and the U.S. Government (Census Bureau and H.U.D.). 40% “LIKED” A BUSINESS ON FACEBOOK 65% READ LGBT BLOGS / WEBSITES We also present public and custom onsite educational seminars and 31% CLICKED ON A FACEBOOK AD workshops. Community Marketing & Insights has produced or presented at 15% CLICKED ON A MOBILE APP AD LGBT marketing symposia on six continents. 60% MAKE REGULAR DONATIONS TO 1+ Learn more on our website, www.communitymarketinginc.com NON-PROFITS OR CHARITIES

Community Marketing, Inc., 584 Castro St. #834, San Francisco CA 94114 USA • 415/437-3800 AND MORE! LGBT Market Research: There is a difference! Market research studies and resulting statistics are meant to help marketers understand the LGBT communities, and influence educated decisions about their strategies and tactics. However, not all research is the same. Community Marketing & Insights methodologies and experience are distinct from those of others when considering approaches, respondent panels—and ultimately—the validity and utility of sought-after results.

WHO ARE YOU TALKING TO? Community Marketing & Insights (CMI) has developed our proprietary consumer panel over the past 20+ years by cir- culating field surveys at leading LGBT events, and by partnering with LGBT organizations and media across the USA, Canada, the UK, and around the world. These partners distribute our survey invitations via print ads, web banners, email broadcasts and social networks to their memberships and/or readers. The resulting panels are highly representative of LGBT consumers who interact with the LGBT community and media. This is important: If your communications channels are via the LGBT media, you’ll want to depend on research that represents these consumers’ interests, preferences, sensi- tivities and motivations. CMI research is trusted by—and frequently quoted in—the New York Times, USA Today, the Wall Street Journal, Forbes, Chicago Tribune, Los Angeles Times, Miami Herald, Ad Week, NPR, CBS News, Associated Press, etc. Other providers typically send out widely distributed panel invitations (via Yahoo, etc.), and then sort for those who trust the researcher enough to indicate that they are gay or lesbian in the context of a survey. This approach, attempting to “represent the gay community at large,” may be appropriate for direction in sociological or academic studies, but not for developing clear, representative advertising or marketing related strategies. Other researchers use lists from one or two LGBT publishers, which may skew results. For marketers desiring valid LGBT consumer insights about products, services, advertising creative and marketing strategies, these panel development approaches are not likely to yield LGBT community members who are interacting with the media where you are placing ads. IN RESEARCH, SIZE DOES MATTER.

CMI has conducted over a hundred LGBT-dedicated research studies since the early ‘90s, covering a wide variety of topics, industries and interests. Through our work, we both observe and influence the trends of this market. Size does matter in the case of research. Our research panel has grown to over 70,000 qualified LGBT consumers, the largest of its ® kind, by far. Our 6th Annual LGBT Community Survey study attracted over 45,000 survey participants, representing 148 countries, making it the largest such study in history. We leverage our long history/experience/expertise for your benefit, and fine-tune our portfolio of research panels, methodologies and approaches to best match your market intelligence goals. Without access to this enormous resource of qualified LGBT consumer panelists, other companies have to compromise on the quality and demographic representation of the panel, or “reinvent the wheel” at your expense. One cannot fathom the diversity and complexities within LGBT (see below) on a small sample. And with small samples, you loose the opportunity to derive statistically-sig- nificant cross tabs on gender, geographical location, age, income, experience, product choice, etc. Can you really make the assumption that a 28 year old lesbian in Seattle has the same purchasing motivations and behaviors as a 67 year old gay man in Atlanta? Generalities and sweeping statements about “the gay market” based on comparatively small samples can distort the results of research findings, potentially wasting your investment of time and resources. DIVERSITY: THERE IS NO “LGBT MARKET” Community Marketing & Insights emphasizes that there is no “gay market,” just as there is no singular “Asian mar- ket.” The LGBT communities represent a broad and dynamic spectrum of interests, sensitivities, preferences and priorities. Those, plus variations in geographical location, age, income, relationship status, gender identity and more, make it even more important to discover which opportunities within LGBT will help you achieve your goals. Fine tuning your approach- es based on highly refined and well-targeted matches within LGBT will make your outreach initiatives more efficient and cost-effective, and will significantly improve your marketing ROI. General surveys on “the gay market” are likely to only scratch the surface of the diversity and varieties of opportunities mar- keters can enjoy if properly explored and understood. continues... TWO SIDES OF THE COIN: QUANTITATIVE AND QUALITATIVE

Since 1994, CMI has taken pride in operating the most consistent, longest-running series of LGBT community sur- veys in the world. But we don’t stop there. Quantitative (data) research is one important side of a coin, but only tells half of the story. The other side of a comprehensive research initiative involves qualitative research, most notably derived from focus groups. We pre-qualify our focus group participants from among our survey panelists, identifying the best candi- dates based on characteristics such as age, gender, relationship status, geographical location, and even a propensity or his- tory of using the client’s products or services. We maintain sufficient numbers of panelists to conduct groups in most major metro areas across the USA, Canada, UK, Germany and Australia, as well as many secondary markets. We’ve found that the same creative, tested in different regions, often yields substantially differing results. Isn’t it wise to know that—and adjust your plans—before investing in marketing campaigns? CMI is the only LGBT-dedicated research provider that pro- duces and facilitates LGBT focus group studies and other qualitative research options. We have developed and reported on focus groups covering a wide variety of topics, plus we have operated telephone interviews, field surveys, advisory board series and multi-year customer satisfaction survey projects which can round out a comprehensive market intelligence plan. Producing only online surveys, other research companies are telling half of the story (at best). Without actual consumer inter- action, they cannot fathom the deeper insights hiding behind the bar graphs and pie charts, nor can they adequately advise you on the sensitivities and complexities that are only uncovered in qualitative research... extremely important considerations that averages and extrapolated assumptions based only on survey statistics are likely to miss. WE DON’T OUTSOURCE! Community Marketing & Insights maintains our own research panels and utilizes advanced, sophisticated research software. We do all of our research in-house, because nobody knows this market segment as well as we do. We never sell or rep another company’s services, nor will we outsource your project to a 3rd party. Some firms work as reps of research companies, or outsource clients’ projects, and report on the results of the 3rd party’s work. But without being intimately involved in every aspect of the project, from discussing the client’s goals and designing the study, to build- ing the survey, implementing it and writing the report, and without engaging directly with consumers in focus groups, it is difficult to gain the insights that can only come from CMI’s hands-on LGBT research specialization spanning nearly two decades. TRUSTED

Community Marketing, Inc., founded in 1992, pioneered LGBT consumer research. Because we are LGBT-owned and -operated and well known in the community, we have earned the recognition and trust of our survey panelists. LGBT consumers recognize that we use research data to build corporate relationships, which ultimately lead to better conditions for LGBT employees, social progress, and sensitive communications. PROUDLY LGBT-OWNED AND -OPERATED

One of the questions in HRC’s Corporate Equality Index application is whether the applicant company includes LGBT-owned suppliers when sourcing products and services. When you contract with Community Marketing, you not only gain the benefit of our long-standing leadership in this field, you are working with one of the only LGBT-owned mar- ket research providers. Community Marketing, Inc. is an NGLCC Certified LGBT-Owned Business Enterprise. COMMUNITY CITIZENSHIP

CMI is involved in the LGBT community: We volunteer time, donate resources and raise funds for numerous com- munity-based organizations. We also participate in the community’s leading business and advocacy organizations, events and conferences, such as Out & Equal, HRC, National Gay & Lesbian Chamber of Commerce, GLAAD, NCLR, International Gay & Lesbian Travel Association, National Lesbian & Gay Journalists Association, etc. This community con- nection is not only the right thing to do, it is essential for initiating appropriate relationships for our clients. VALUE

CommunityYou’d Marketing think & that Insights with this kind of specialization and experience, you’d be investing considerably more for services than for research from other companies. But it is due to our specific focus on LGBT market intelligence, and the cumulative 60+ years of dedicated LGBT research among the CMI team, that we can actually keep your costs low. We are not spending your money to locate qualified survey or focus group participants, nor are we spending our time (or your money) trying to source comparative data or case studies. We’ve done all that over the past 20 years for your benefit. And we are not running a large operation that juggles many accounts and projects of differing scope and focus. CMI’s client dedication and market specialization delivers you superior intelligence at a fraction of the cost of other firms. 584 Castro St. #834 • San Francisco, CA 94114 USA • Tel 415/437-3800 • Fax 415/552-5104 [email protected] • www.CommunityMarketingInc.com