Report Also Reveals Mainstream Tipping Point,
as Multicultural/Diverse Consumers Drive Brand Choices for 57% of
the General Population
HOUSTON, April 2,
2024 /PRNewswire/ -- Direct Digital Holdings, Inc.
(Nasdaq: DRCT) ("Direct Digital Holdings" or the "Company"), a
leading advertising and marketing technology platform operating
through its companies Colossus Media, LLC ("Colossus SSP"), Huddled
Masses LLC ("Huddled Masses") and Orange 142 ("Orange 142"), today
released a new whitepaper, Cracking the Code: How Multicultural
& Gen Z Reshape Mainstream Marketing. The paper features
exclusive research along with insights from industry leaders and
academics.
Direct Digital Holdings' research shows that the outsized
influence that multicultural and diverse communities have on the
brand choices of mainstream consumers – especially Gen Z – should
be viewed as a seismic shift by brand marketers to intentionally
and authentically connect with multicultural and diverse consumers
to promote broader sales.
For the report, Direct Digital Holdings commissioned Horowitz
Research to survey over 2,300 U.S. consumers to understand how
Black/African American, Hispanic/Latin, AAPI and LGBTQIA+
consumers' brand perceptions and purchase behaviors affect the
general population overall, with a particular focus on Gen Z.
The findings show that 81 percent of Gen Zers – the most diverse
generation in history – and 72 percent of Millennials say that
multicultural and diverse consumers have a big impact on their
brand choices, and surprisingly, 48 percent of Gen Xers, and 32
percent of Boomers report the same.
While younger consumers are at the forefront of this market
shift, results reveal that the level of multicultural and diverse
peoples' influence on the overall market surpasses their current
share of the population – with more than half (57%) of today's
mainstream consumers saying that multicultural and diverse
communities' tastes and opinions strongly influence their own brand
preferences.
When looking at the impact specifically on major brand
categories, a very high percentage of Gen Zers said that
multicultural/diverse communities have an influence on a wide range
of product and service choices. Top categories where Gen Z cite
big/some influence, include:
- Food/Restaurants – 90%
- Fashion – 89%
- Entertainment – 88%
- Beauty/Wellness – 87%
- Household/Cleaning – 82%
- Technology – 76%
Michael Roca, Executive Director
of ELEVATE at Omnicom Media Group, shared his thoughts in the
whitepaper on what this means for brands. "There was a time when
brands had a Hispanic budget, a Black budget, etc. Today, it's
everybody's responsibility to reach these audiences. Brands and
agencies need to make this a business priority, and the siloed
approach doesn't work anymore."
Examining the presence of diversity in various circles of
family, friends, colleagues and neighbors – as well as celebrities,
influencers, and other public figures followed on social or other
media – Direct Digital Holdings' survey confirmed that
diversity is real and present in U.S. consumers' lives. Nearly
three-quarters (72%) of mainstream consumers say that at least some
of their closest connections do not share their race, ethnicity or
sexual identity. Gen Z consumers, however, were the most likely to
say that their connections, at every level, are primarily
diverse.
"These groups have been disproportionately influential. And
today, cultural circles are more heterogeneous than ever before,"
added Dr. Marcus Collins, Clinical
Assistant Professor of Marketing at the Ross School of Business,
University of Michigan, and author of
For the Culture. "Marketers have been a little slow to this.
Particularly the impact and influence of network effects."
The whitepaper tapped into the perspectives of a wide range of
leading executives from across the media and marketing industry, as
well as top academics. The full list includes:
- Alison Ciccione, Director, US Media, McDonald's
- Dr. Marcus Collins, Clinical
Assistant Professor of Marketing, University
of Michigan's Ross School of Business
- Sheryl Daija, Founder and CEO, BRIDGE
- MJ DePalma, Head of Inclusive Business Impact, Microsoft
Advertising
- Andrea Fischer, Senior Manager,
Media Strategy, Bayer Consumer Health
- Lashawnda Goffin, CEO, Colossus
SSP
- Maria Lowrey, Chief Growth Officer, Direct Digital
Holdings
- Caleb Pearson, Vice President,
US Customer Engagement, McDonald's
- Mark Prince, SVP, Head of Economic Empowerment, dentsu
Media
- Michael Roca, Executive Director of ELEVATE, Omnicom Media
Group
- Kana Schmidt, Marketing
Director, Pain/Cardio, Bayer
- Thomaï Serdari, Clinical Associate Professor of Marketing and
Director of Fashion and Luxury MBA, New York
University's Stern School of Business
- Natalie Shyu, Group Director, Digital and Programmatic
Strategy, dentsu Media
- Esther Uduehi, Assistant Professor of Marketing and
International Business, University of
Washington's Foster School of
Business
- Mark D. Walker, CEO and
Co-Founder, Direct Digital Holdings
- Arnetta Whiteside, SVP,
Multicultural Consulting, Agency and Brand Readiness, Publicis
Media
"Among the younger consumers who will dominate the market in the
future, the deep-rooted presence and influence of multicultural and
diverse people has become staggering – making intentional and
authentic connection with these communities critical for any brand
seeking success in the marketplace," said Mark D. Walker, CEO and Co-Founder of Direct
Digital Holdings, who wrote the introduction to the whitepaper.
"Moreover, the research makes clear that this isn't just about
tomorrow. Black/African American, Hispanic/Latin, AAPI and LGBTQIA+
people already have an outsized influence on the brand choices of
57 percent of the broader market today. It's a tipping point that
cannot and should not be ignored."
To download the whitepaper, Cracking the Code: How
Multicultural & Gen Z Reshape Mainstream Marketing, go to
https://hubs.ly/Q02r3Sb30.
Methodology
This study included quantitative research
and analysis conducted by Horowitz Research
(www.horowitzresearch.com). A total of 2311 online surveys were
conducted November 16-27, 2023. 1,021
general market interviews among 13+ U.S. consumers, plus an
oversample of 1,290 Black, Hispanic/Latin, and AAPI consumers. Data
have been weighted as needed to ensure results are representative
of each of the individual segments and the U.S. population as a
whole.
About Direct Digital Holdings
Direct Digital Holdings
(Nasdaq: DRCT), owner of operating companies Colossus SSP, Orange
142 and Huddled Masses, brings state-of-the-art sell- and buy-side
advertising platforms together under one umbrella company.
Direct Digital Holdings' sell-side platform, Colossus SSP, offers
advertisers of all sizes extensive reach within general market and
multicultural media properties. The Company's subsidiaries Huddled
Masses and Orange142 deliver significant ROI for middle market
advertisers by providing data-optimized programmatic solutions at
scale for businesses in sectors that range from travel to education
to energy to healthcare to financial services. Direct Digital
Holdings' sell- and buy-side solutions manage on average over
115,000 clients monthly, generating over 326 billion impressions
per month across display, CTV, in-app and other media channels.
Forward-Looking Statements
This press release may
contain forward-looking statements within the meaning of federal
securities laws, including the Private Securities Litigation Reform
Act of 1995, Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and which are subject to certain risks, trends and
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As used below, "we," "us," and "our" refer to Direct Digital
Holdings. We use words such as "could," "would," "may," "might,"
"will," "expect," "likely," "believe," "continue," "anticipate,"
"estimate," "intend," "plan," "project" and other similar
expressions to identify forward-looking statements, but not all
forward-looking statements include these words. All statements
contained in this release that do not relate to matters of
historical fact should be considered forward-looking
statements.
All of our forward-looking statements involve estimates and
uncertainties that could cause actual results to differ materially
from those expressed in or implied by the forward-looking
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that we have made in light of our industry experience and our
perceptions of historical trends, current conditions, expected
future developments and other factors we believe are appropriate
under the circumstances. Although we believe that these
forward-looking statements are based on reasonable assumptions,
many factors could affect our actual operating and financial
performance and cause our performance to differ materially from the
performance expressed in or implied by the forward-looking
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overall demand for advertising, which could be influenced by
economic downturns; any slow-down or unanticipated development in
the market for programmatic advertising campaigns; the effects of
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operational and performance issues with our platform, whether real
or perceived, including a failure to respond to technological
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retain qualified board members as a result of being a public
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distributions from Direct Digital Holdings, LLC to pay our taxes,
expenses and dividends; and other factors and assumptions discussed
in the "Risk Factors," "Management's Discussion and Analysis of
Financial Conditions and Results of Operations" and other sections
of our filings with the SEC that we make from time to time. Should
one or more of these risks or uncertainties materialize or should
any of these assumptions prove to be incorrect, our actual
operating and financial performance may vary in material respects
from the performance projected in these forward-looking statements.
Further, any forward-looking statement speaks only as of the date
on which it is made, and except as required by law, we undertake no
obligation to update any forward-looking statement contained in
this release to reflect events or circumstances after the date on
which it is made or to reflect the occurrence of anticipated or
unanticipated events or circumstances, and we claim the protection
of the safe harbor for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995.
Media Contact:
press@directdigitalholdings.com
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SOURCE Direct Digital Holdings