• Introduction
  
  • Background
  • Overview of Report
  
  
• Scope and Methodology
  
  • Market Definition
  • Methodology
  
  
• Current Population Trends
  
  • Gay and Lesbian Population Nears 15 Million
  • Self-Identified Gay Men More Prevalent
  • Gay Population Skews Younger
  • Gay Population Geographically Concentrated
  • Residential Patterns of Gay Men and Lesbians Differ
  • Gay Men More Likely to Live in Gay Neighborhoods
  
  
• Economic and Social Profile
  
  • Income Levels Analyzed
  • Census 2000 Reveals Income Data for Gay Men and Lesbians
  • Couples’ Educational Achievement Analyzed
  • Research Reveals Distinct Employment Patterns
  • Many Gays in Committed Relationships
  • Polls Show Increasing Tolerance
  • Younger Generation less Concerned about Gay Marriage
  
  
• Overview of Consumer Behavior
  
  • Gay-Friendly Corporate Policies Key Draw for Gay and Lesbian Consumers
  • Gay Consumers Relate to Gay Sales Persons
  • Gays Depend on the Internet
  • Gay Consumers More Likely to Buy Online
  • Internet Leading Source of Information about Products and Services
  • Gays Are Frequent Travelers
  • Gay Auto Buyers Value Style and Design
  • Gays More Likely to Own Personal Electronic Products
  • Redecorating a Higher Priority than Renovating
  • Gays More Likely to Seek Out-of-Home Entertainment
  
  
• Key Consumer Segments
  
  • Gay Men More Attuned to Gay Media
  • Gay Men Seen as Strong Shoppers
  • Gay Men Are Early Adopters
  • Lesbian Consumers Have Above-Average Incomes
  • Lesbians Remain Invisible Consumer Segment
  • Seniors Will Comprise Increasingly Large Segment of Gay Population
  • New Possibilities Arise for Gay and Lesbian Seniors
  
  
• Gay and Lesbian Families
  
  • Same-Sex Union Announcements Get Wider Play in Media
  • Number of Companies Offering Domestic-Partner Benefits Continues to Grow
  • Per Capita Income Higher
  • Census Counts Children in One in Four Gay Households
  • Gay Families Include Many Stay-at-Home Dads
  • Gay Marriages and Commitment Ceremonies Spark Marketers’ Interest
  • Gay Families Create New Consumer Segment
  
  
• Media Usage
  
  • Print Media Valued Highly
  • Gay Print Media Seen as Cost-Effective Advertising Vehicle
  • Premium Cable Networks Favored
  • Gay Characters and Themes Now Common on Mainstream Television
  • Number of Gay Television Outlets Reaches Critical Mass
  • Top Radio Formats Listed
  • Gays Turn to Online Media
  
  
• Marketing and Advertising Trends
  
  • Gay Pride Events Offer High-Profile Opportunities
  • Ad Industry Sees Profound Shift
  • New Media Outlets Will Increase Efficiencies in Reaching Gay Audience
  • Auto Industry Sharpens Focus on Gay Market
  • Firms Target Early Adopters in Gay Market
  
  
• Size and Growth of the Market
  
  • Gay and Lesbian Buying Power Totals $581 Billion
  • Buying Power of Gay Men Reaches $337 Billion, Lesbians $244 Billion
  • Leading Metro Markets Listed
  
  
• Trends and Opportunities
  
  • “Will & Grace” Generation Will Continue to Drive Shifts in Attitudes toward Gays
  • Younger Generation of Gays Begins to Have Impact
  • Under-25 Gays May Eventually Shift Direction of Gay & Lesbian Marketing
  • Growing Prominence of Gay Market Reflects Trend toward Micromarketing
  • Precise Segmentation Required to Take Advantage of Gay and Lesbian Market Opportunities
  • Possibilities Created by Moving Beyond Stereotypes

Section 1 The Gay and Lesbian Population Today
Chapter 2 Current Population Trends

• Overview
  
  • Population and Market Defined
  • Data Sources Reviewed
  
  
• Size and Growth of Population
  
  • Key Assumptions Highlighted
  • Gay and Lesbian Population Nears 15 Million
  • Table 2-1: Projected Growth of Total U.S. and Gay and Lesbian Population 18 Years Old and Over, 2004-2009
  
  
• Gender
  
  • Self-Identified Gay Men More Prevalent
  • Number of Gay Men Totals 8.7 Million
  • Table 2-2: Projected Growth of Total U.S. and Gay and Lesbian Population 18 Years Old and Over, by Gender, 2004-2009
  
  
• Age Structure
  
  • Gay Population Skews Younger
  • Table 2-3: Population of Gay Men by Age Group
  • Gay Men Over-represented in Younger Age Brackets
  • Table 2-4: Gay Men as Percent of Male Population as a Whole, by Age Group
  
  
• Geographic Distribution
  
  • Gay Population Geographically Concentrated
  • Table 2-5: States with Largest Gay and Lesbian Populations
  • Some States Have Above-Average Gay and Lesbian Population
  • Table 2-6: Ranking of States, Gay and Lesbian vs. General Population
  • Residential Patterns of Gay Men and Lesbians Differ
  • Table 2-7: Top 10 States, Gay Men vs. Lesbians
  • Table 2-8: Top 10 Counties, Gay Men vs. Lesbians
  • Lesbians Likely to Live in More Rural States
  • Table 2-9: Percent of Females in Population in Selected States, Lesbian Couples vs. Population as a Whole
  • Men More Likely to Choose Cities
  • Table 2-10: Percent of Females in Population in Selected Metropolitan Areas, Lesbian Couples vs. Population as a Whole
  • Lesbians less Likely to Live in Big Cities
  • Figure 2-1: Selected Residential Patterns, Lesbians vs. Gay Men
  • Table 2-11: Top 10 Metropolitan Statistical Areas, Gay Men vs. Lesbians
  • Suburbs More Common Destination for Lesbians Living in Metro Areas
  • Table 2-12: Residential Patterns of Lesbian Couples in San Francisco Bay and Los Angeles Metropolitan Areas
  • Table 2-13: Residential Patterns of Lesbian Couples in Chicago Metropolitan Area
  • Table 2-14: Residential Patterns of Lesbian Couples in New York Metropolitan Area
  • Gay Men More Likely to Live in Gay Neighborhoods
  
  
• Race and Ethnicity
  
  • Gay and Lesbian Population Reflects Racial and Ethnic Profile of America
  • Racial and Ethnic Profile at State Level Analyzed
  • Table 2-15: Percent of White Households in States, Gay & Lesbian vs. All Households
  • Gay Couples in Major Metro Areas Are less Diverse than Average
  • Table 2-16: Percent of White Households in Major Metropolitan Areas, Gay & Lesbian vs. All Households

Chapter 3 Economic and Social Profile

• Economic Status
  
  • New Studies Explore Income Levels of Gay Men and Lesbians
  • Census 2000 Reveals Income Data for Gay Men and Lesbians
  • Homeownership Rates Lower
  • Gay-Male Couples Live in Expensive Urban Housing
  
  
• Educational Achievement
  
  • Educational Levels Equal or Exceed General Population’s
  • Couples’ Educational Achievement Analyzed
  
  
• Employment Patterns
  
  • Research Reveals Distinct Employment Patterns for Gays and Lesbians
  • Self-Employment More Common
  • New Chamber to Represent Gay and Lesbian Business Owners
  
  
• Household and Family Structure
  
  • Many Gays in Committed Relationships
  • Couples Account for Substantial Segment of Gay and Lesbian Population
  • Table 3-1: Gay Men and Lesbians, by Living Arrangement
  • Table 3-2: Gay and Lesbian Households, by Type of Household
  
  
• Health Status
  
  • Gays Likely to Use Health-Care Services
  • Table 3-4: Visit to Doctor or Health-Care Professional in Last 12 Months, LGBT vs. Heterosexual Consumers
  • Table 3-5: Whether Health-Care Provider Is Aware of Sexual Orientation of LGBT Patients
  • Table 3-6: Withholding Information from Doctor by LGBT Patients
  • Health Insurance Less Common
  • Table 3-7: Whether Have Health Insurance, LGBT vs. Heterosexual Consumers
  • Table 3-8: Health Insurance Sources
  • Gays See Similar Health Risks
  • Table 3-9; Perception of Heath Risks, Gay & Lesbian vs. Heterosexual Consumers
  • Health Priorities Differ
  • Table 3-10: National Health Priorities
  • Internet Leading Source of Information about Health
  • Table 3-11: Sources of Health Information, LGBT vs. Heterosexual Consumers
  • Research Finds Mixed Health Profile
  
  
• Social Profile
  
  • Gays Comprise Significant Voting Bloc
  • Participation in Organized Religion Less Common
  • Polls Show Increasing Tolerance
  • Increased Openness Key Factor in Change in Public Opinion
  • Civil Unions Less Controversial than Marriage
  • Younger Generation Less Concerned about Gay Marriage
  • Record Number of Fortune 500 Companies Adopt Anti-Discrimination Policies
  • Acceptance in Workplace Remains Mixed
  • Table 3-12: Attitudes toward Gay Employees, Gay Men and Lesbians vs. Heterosexuals
  • Many Gays Still Cautious at Work
  • Table 3-13: Openness about Personal Lives in the Workplace, Gay and Lesbian vs. Heterosexual Employees

Section 2 Understanding the Consumer Behavior of Gay Men and Lesbians
Chapter 4 Overview of Consumer Behavior

• Key Factors Influencing Gay and Lesbian Consumer Behavior
  
  • Friendly Corporate Policies Key Draw for Gay and Lesbian Consumers
  • Table 4-1: Impact of Corporate Diversity Policies on Consumer Behavior, Gay and Lesbian vs. Heterosexual Consumers
  • Table 4-2: Reasons for Choosing One Brand over Another, Gay and Lesbian vs. Heterosexual Consumers
  • Boycotting More Common
  • Table 4-3: Boycotting Companies, Gay and Lesbian vs. Heterosexual Consumers
  • Table 4-4: Reasons for Boycotting Companies, Gay and Lesbian vs. Heterosexual Consumers
  • Gay Consumers Relate to Gay Sales Persons
  • Table 4-5: Impact of Identity of Sales Person on Purchasing Decisions, Gay and Lesbian vs. Other Consumer Groups
  
  
• Gay Consumers and the Internet
  
  • Gays Depend on the Internet
  • Gay Consumers More Likely to Buy Online
  • Table 4-6: Top Activities on the Internet, LGBT vs. Heterosexual Consumers
  • Online Advertising Influences Gay Buying Decisions
  • Table 4-7: Influence of Online Advertising on Purchasing Decisions, LGBT vs Heterosexual Consumers
  • Internet Leading Source of Information about Products and Services
  • Table 4-8: Sources of Information about Products and Services, LGBT vs. Heterosexual Consumers
  
  
• Travel
  
  • Travel-Related Web sites Most Often Used for Hotel Reservations
  • Table 4-9: Method for Booking Hotel Reservation, LGBT vs. Heterosexual Consumers
  • Gays Are Frequent Travelers
  • Criteria for Selection of Travel Service Providers Listed
  • Table 4-10: Reasons for Choosing Favorite Hotel Chain for Leisure Travel, Gay and Lesbian vs. Heterosexual Consumers
  • Table 4-11: Criteria for Selection of Hotels for Personal Travel
  • Table 4-12: Reasons for Choosing Favorite Airline, Gay and Lesbian vs. Heterosexual Consumers
  • Table 4-13: Reasons for Choosing Favorite Rental Car, Gay and Lesbian vs. Heterosexual Consumers
  • Budgets of Gay and Lesbian Travelers Less Impacted by Recession
  • Table 4-14: Mean Amount Expected to Be Spent for Travel by Category of Expenditure, Gay and Lesbian vs. Heterosexual Consumers, 2003 vs. 2001
  
  
• Automotive
  
  • Vehicle Expenditures Significant
  • Figure 4-1: Average Annual Expenditures by Single Men and Women for Vehicle Purchases, by Age Group
  • Online Information Sources Used in Auto Purchases
  • Gay Auto Buyers Value Style and Design
  • Word-of-Mouth Also Important in Choosing a Vehicle
  • Table 4-15: Reasons for Choosing Favorite Car, Gay and Lesbian vs. Heterosexual Consumers
  
  
• Technology and Consumer Electronics
  
  • Gays More Likely to Own Personal Electronics Products
  • Table 4-16: Ownership of Personal Electronics Products, Gay and Lesbian vs. Heterosexual Consumers
  • Table 4-17: Plans to Purchase Personal Electronics Products, Gay and Lesbian vs. Heterosexual Consumers
  • Digital Cameras High on List of Gay Consumers
  • Table 4-18: Ownership of Digital Cameras, Gay and Lesbian vs. Heterosexual Consumers
  • Factors in Choice of Electronics and Computer Brands Listed
  • Table 4-19: Reasons for Choosing Favorite Audio Electronic Brand, Gay and Lesbian vs. Heterosexual Consumers
  • Table 4-20: Reasons for Choosing Favorite Computer Hardware or Software Brand, Gay and Lesbian vs. Heterosexual Consumers Personal Care
  • Gays More Likely to Use Supplements
  • Table 4-21: Use of Supplements, Gay and Lesbian vs. Heterosexual Consumers
  • Table 4-22: Median Amount Spent on Supplements, Gay and Lesbian vs. Heterosexual Consumers
  • Use of Skin-care Products Differs
  • Table 4-23: Use of Skin-Care Products, Gay and Lesbian vs. Heterosexual Consumers
  • Table 4-24: Place of Purchase of Skin-Care Products, Gay and Lesbian vs. Heterosexual Consumers
  
  
• Home
  
  • Redecorating a Higher Priority than Renovating
  • Table 4-25: Redecorating and Renovating Plans, Gay and Lesbian vs. Heterosexual Consumers
  • Home Purchase Plans Analyzed
  • Table 4-26: Home Purchase Plans, Gay and Lesbian vs. Heterosexual Consumers
  • Pets More Common
  • Table 4-27: Ownership of Household Pets, Gay and Lesbian vs. Heterosexual Consumers
  • Pets in Gay Households More Likely to Get Special Treats
  • Table 4-28: Purchase of Special Pet Snacks, Gay and Lesbian vs. Heterosexual Consumers
  
  
• Other Industries and Products
  
  • Gays More Likely to Seek Out-of-Home Entertainment
  • Convenience Customer Service Most Important in Choice of Primary Bank
  • Table 4-29: Reasons for Choosing Primary Bank, Gay and Lesbian vs. Heterosexual Consumers
  • Word-of-Mouth Influences Choice of Discount Retailers
  • Table 4-30: Reasons for Choosing Favorite Discount Retailer, Gay and Lesbian vs. Heterosexual Consumers

Chapter 5 Key Consumer Segments

• Gay Male Consumers
  
  • Key Facts about Gay Male Consumers Highlighted
  • Table 5-1: Key Facts about Gay Male Consumers
  • Gay Men More Attuned to Gay Media
  • Table 5-2: LGBT Usage of Gay Media
  • Gay Men More Likely to Participate in Community Events
  • Table 5-3: LGBT Participation in Gay and Lesbian Community Events
  • Gay Men Seen as Strong Shoppers
  • Gay Men Are Early Adopters
  • Figure 5-1: Average Annual Expenditures by Single Men for Consumer Electronics Equipment
  • Expenditure Patterns of Single Gay Men Analyzed
  • Table 5-4: Expenditures of Consumer Units of Single Males, by Age of Reference Person and Selected Expenditure Category, 2002
  
  
• Lesbian Consumers
  
  • Key Facts about Lesbian Consumers Summarized
  • Table 5-5: Key Facts about Lesbian Consumers
  • Lesbian Consumers Have Above-Average Incomes
  • Figure 5-2: Annual Income, Lesbians vs. U.S. Women as a Whole, 2003
  • Lesbians Remain Invisible Consumer Segment
  • Lesbian Fashion Influence Seen as Unstereotypically Significant
  • Table 5-6: Expenditures of Consumer Units of Single Females, by Age of Reference Person and Selected Expenditure Category, 2002
  
  
• Seniors
  
  • American Population Will Age Rapidly
  • Figure 5-3: Percent Growth in Population, Total U.S. vs. 65+ Population, 2000-2020
  • Seniors Will Comprise Increasingly Large Segment of Gay Population
  • Figure 5-4: Gay and Lesbian Population 50 Years Old and Over, 2004 vs. 2020
  • Gay & Lesbian Senior Population Reflects Environment
  • Table 5-7: Percent of Population 55 Years Old and Over in States, Gay & Lesbian Couples vs. All People
  • Table 5-8: Percent of Population 55 Years Old and Over in Selected Metropolitan Areas, Gay & Lesbian Couples vs. All People
  • Los Angeles County Has Largest Population of Mature Gay Couples
  • Table 5-9: Counties with Largest Number of Same-Sex Couples 55 Years Old and Over
  • Older Gay Couples Have Greatest Impact in San Francisco
  • Table 5-10: Same-Sex Couples 55 Years Old and Over Vs. All People 55 Years Old and Over, by County
  • Gay Men and Lesbians Begin to Focus on Planning for Old Age
  • Public Policy Diminishes Financial Flexibility of Gay Seniors
  • Gay Seniors Lack Traditional Support Networks
  • Many Are Heavily Involved in Caregiving
  • New Possibilities Arise for Gay and Lesbian Seniors
  • Developers Prepare for Gay and Lesbian Retirees
  • Numerous Retirement Communities on Drawing Board

Chapter 6 Gay and Lesbian Families

• Introduction
  
  • Gay and Lesbian Families Achieve Greater Prominence
  • Gay and Lesbian Families Receive More Legal Protection
  • Legal Situation in State of Flux for Gay and Lesbian Families
  • Same-Sex Union Announcements Get Wider Play in Media
  • More Companies Offer Domestic-Partner Benefits
  • Business Cost Impact of Same-Sex Marriage Seen Minimal
  
  
• Demographic Overview
  
  • Many Gay Couples Previously Married
  • Per Capita Income Higher
  • Gay and Lesbian Couples Are Younger
  • Census Counts Children in One in Four Gay Households
  • Figure 6-1: Percent of Households with Children, Gay & Lesbian vs. All Households
  • More Gays Raise Children
  • Table 6-1: Gay and Lesbian Households with Children
  • Wide Variations in Location of Gay & Lesbian Families with Children
  • Table 6-2: Percent of Households with Children by State, Gay & Lesbian vs. All Households
  • Table 6-3: Households in Major Metropolitan Areas by Presence of Children, Gay & Lesbian vs. All Households
  • Gay Families Include Many Stay-at-Home Dads
  
  
• Strategic Implications
  
  • Gay Marriages and Commitment Ceremonies Spark Marketers’ Interest
  • Wedding Industry Takes Note
  • Gay Families Create New Consumer Segment

Section 3 Marketing to Gay Men and Lesbians
Chapter 7 Media Usage

• Print Media
  
  • Print Media Valued Highly
  • Table 7-1: Use of Print Media, LGBT vs. Heterosexual Consumers
  • National Magazines Remain Important
  • Local Publications Are Vital Advertising Medium
  • Ad Spending in Gay Print Media Reaches $162 Million
  • Magazines Offer Advice for Gay Parents
  • New Titles Continue to Be Launched
  
  
• Television and Radio
  
  • Premium Cable Networks Favored
  • Table 7-2: Use of Television, LGBT vs. Heterosexual Consumers
  • Viewing Habits Described
  • Gay Characters and Themes Now Common on Mainstream Television
  • “The L Word” Breaks New Ground
  • Gay-Themed TV Programs Do Well in Heartland of America
  • Number of Gay Television Outlets Reaches Critical Mass
  • Viacom and MTV Networks Launch LOGO
  • Other Gay TV Outlets Enter the Market
  • Talk Radio More Popular
  • Table 7-3: Use of Radio, LGBT vs. Heterosexual Consumers
  • Top Radio Formats Listed
  
  
• Online Media
  
  • Gays Turn to Online Media
  • Table 7-4: Use of On-line Media, LGBT vs. Heterosexual Consumers
  • Table 7-5: LGBT Use of Gay Media, Online vs. Other

Chapter 8 Marketing and Advertising Trends

• Overview of Marketing and Advertising Strategies
  
  • Gay Pride Events Offer High-Profile Opportunities
  • PepsiCo Takes First Step in 2004 Pride Parade
  • Ad Industry Sees Profound Shift
  • New Media Outlets Will Increase Efficiencies in Reaching Gay Audience
  • Studies Indicates “Gay Vague” Approach May Work Best
  • Celebrities Anchor Marketing and Advertising Campaigns
  • Pier 1 Turns to “Queer Eye” for New Spokesperson
  • Cartier Breaks New Ground
  
  
• Automotive
  
  • Auto Industry Sharpens Focus on Gay Market
  • Long-Term Commitment to Gay and Lesbian Market Pays Off for Auto Manufacturers
  • Subaru Maintains Visibility
  • Ford Motor Company Seeks to Position Luxury Brands in Gay and Lesbian Market
  • General Motors Moves Slowly into Gay and Lesbian Market
  • Local Car Dealers Leverage National Campaigns
  
  
• Technology and Consumer Electronics
  
  • Firms Target Early Adopters in Gay Market
  • Earthlink Looks to Gay Market
  • Gay Employees Take Lead for IBM
  • BellSouth Affiliates with Gay Pride Celebration
  • Adelphia Launches Gay Marketing Campaign
  
  
• Travel and Tourism
  
  • Avis Allocates Ad Budget for Gay Consumers
  • Tourism Campaigns Seek Gay Visitors
  • Kimpton Hotels and Restaurants Attracts Gay Business Travelers
  
  
• Other Products and Services
  
  • Miller Has Significant Advertising Budget for Gay Market
  • Del Monte Appeals to Gay Pet Owners

Section 4 Market Trends

Chapter 9 Size and Growth of the Market

• Buying Power of Gay Men and Lesbians
  
  • Buying Power Used as Measure of Market Size
  • Gay and Lesbian Buying Power Totals $581 Billion
  • Table 9-1: Projected Growth in Total Gay and Lesbian Buying Power, 2004-2009
  • Buying Power of Gay Men Reaches $337 Billion, Lesbians $244 Billion
  • Table 9-2: Projected Growth in Gay and Lesbian Buying Power by Gender, 2004-2009
  
  
• Major Geographic Markets
  
  • Leading Metro Markets Listed
  • Table 9-3: Metropolitan Areas with Largest Gay and Lesbian Populations, 2004
  • Gay and Lesbian Purchasing Power in New York Metro Area Totals $68 Billion
  • Table 9-4: Metropolitan Areas by Gay & Lesbian Buying Power, 2004
  • Gay Purchasing Power Concentrated in Metro Areas
  • Table 9-5: Gay and Lesbian Buying Power, Top 15 Metro Areas vs. All Other Areas, 2004

Chapter 10 Trends and Opportunities

• Strategic Trends
  
  • “Will & Grace” Generation Will Continue to Drive Shifts in Attitudes toward Gays
  • Mainstreaming of Gay Culture Provokes Discussion
  • Younger Generation of Gays Begins to Change Profile of Gay Community
  • Under-25 Gays May Eventually Shift Direction of Gay & Lesbian Marketing
  • Many Gay Neighborhoods in Transition
  • Gay Consumers Have Same Expectations as Other Consumers
  • Growing Prominence of Gay Market Reflects Trend toward Micromarketing
  
  
• Marketing Opportunities
  
  • Precise Segmentation Required to Take Advantage of Gay and Lesbian Market Opportunities
  • Possibilities Created by Moving Beyond Stereotypes
  • Gays Offer Trendsetting Opportunities
  • Marketers Can Leverage Technology to Reach Gay Consumers

Appendix I Definition of Terms
Appendix II Addresses of Selected Gay and Lesbian Market Resources

• Advertising/Marketing/Market Research
• Publications
• Other Media
• Organizations