Advertising that celebrates diversity is more likely to drive long-term business effects for brands [REPORT]

System1 released the findings from Feeling Seen USA, a comprehensive report examining diversity and inclusion in advertising. The report revealed that ads that successfully leverage emotional stories with diverse characters can contribute significantly more market share growth than the average U.S. ad. System1 analyzed 58 U.S.-based television ads that cast individuals from under-represented groups and highlighted diverse stories, conducting more than 150 tests among 18,500 people to measure their subsequent emotional responses via its Test Your Ad platform. Many of the ads scored well with both the general population and diverse audiences, demonstrating that diverse advertising techniques have a direct, positive correlation with business’ bottom lines.

Feeling Seen USA examined ads featuring numerous under-represented groups, including but not limited to Black people, Asian American people, people from the LGBTQ+ community and people with disabilities. The report reveals the presence of “diversity dividends,” which occur when an ad performs well among the general public and earns an even higher score among the diverse group featured in the ad. Furthermore, the report shows that diverse advertising is more effective at achieving long-term business effects due to the greater presence of happiness and intensity of emotion compared to non-diverse advertising.

The average score for the ads in the report was 3.8-Stars when shown to the general public, while the same ads scored an average 4.1-Stars when viewed by diverse audiences. Note that System1’s Star Rating from 1 to 5.9 predicts long-term brand growth based on an ad’s creative quality, with higher scores suggesting stronger brand and sales potential. Of the 98 tests System1 conducted among diverse groups, 38% showed an uplift of 0.5-Stars or more compared to the general public, highlighting the potential for brands to drive greater positive emotions and market share growth when diversity is celebrated.

The report also serves as a how-to guide for brands and agencies, offering insights like “avoiding the sadness trap” to create effective ads. Given that 20% of the tests among diverse audiences saw a downshift of 0.5-Stars or more compared to the scores among the general public, our insights suggest that brands must understand how to resolve feelings of sadness or anger prior to an ad’s conclusion. Given that our perspectives are shaped by our lived experiences, certain storylines resonate more firmly than others, and this is also true with diverse audiences.

Lisa Buckler, Senior Vice President of Growth and Partnerships in U.S., System1: “We’ve shown that by embracing diversity and inclusion in advertising, brands can create stronger relationships with consumers, build fame and generate sales. As more brands and agencies explore intentionally inclusive advertising, having the data in hand to back up their decisions and the best practices necessary to put them into motion will become even more critical. Our hope is that Feeling Seen USA will serve as their guide to developing and testing creative that has diversity, equity and inclusion at its core.”

To download report, CLICK HERE.