A new study conducted by the National LGBT Media Association, or NGMA, announced this month that LGBTQ+ consumers are highly aware of the recent corporate shifts away from diversity and inclusion initiatives.
Consumers are also prepared to make decisive economic actions in response.
The survey was pulled from over 400 LGBTQ+ consumers, conducted throughout May 2025, and found that an overwhelming 88% have noticed companies reducing or pausing their LGBTQ+ support in marketing, advertising or DEI initiatives over the past year. The research was designed to understand consumer sentiment and purchasing behaviors in light of recent corporate actions around diversity and inclusion initiatives.
Readers of Watermark Out News also received the survey as Watermark Out News is a member of NGMA. NGMA works with organizations across the country to help effectively market to the LGBTQ+ community, reaching more than a million readers weekly.
The findings demonstrated that awareness is translating into concrete purchasing decisions that could impact corporations in the long run.
“This incredible survey by the National LGBTQ Media Association proves what we have touted for decades, that the LGBTQ+ community is a loyal supporter of those who support them, and they know who does and who does not show support,” says Rick Todd, publisher of Watermark Out News.
Economic consequences are approaching
When asked about their purchasing behavior, 75% of respondents indicated they would either stop buying entirely or reduce spending with companies that scale back LGBTQ+ marketing or diversity initiatives.
There were 85% who actively support competitors who maintain their LGBTQ+ commitments, creating a clear competitive advantage for companies that remain steadfast in their inclusion efforts.
“I have read a lot of surveys and when you get to near 90% on anything, it is reason for concern,” Todd Evans of Rivendell, an LGBTQ+ advertising agency and NGMA member, said.
The survey showed consumers have strong expectations for corporate courage. Over 90% of respondents said they are more likely to purchase from companies that both advertise to LGBTQ+ audiences and actively advocate for policies protecting LGBTQ+ rights, even in the face of potential backlash.
“These statistics are nothing to laugh at, especially when you consider that the reduction in presence to the LGBTQ+ consumer seems to be just a knee-jerk reaction to a short-term political administration,” Evans said.
A market that demands attention
If the global LGBTQ+ community were a country, it would represent the fourth-largest economy in the world. The LGBTQ+ community represents $1.4 trillion in U.S. purchasing power, according to recent Human Rights Campaign data, with global LGBTQ+ purchasing power reaching $3.7 trillion annually.
The National LGBT Chamber of Commerce estimates that there are 1.4 million companies run by members of the LGBTQ+ community in the U.S.
LGBTQ+ owned businesses are defined as being at least 51% owned, operated, managed and controlled by a person(s) who identify as part of the LGBTQ+ community (including non-binary and gender non-conforming individuals), according to the chamber.
The survey showed nearly 30% of Gen Z adults identify as LGBTQ+, which could also suggest the economic influence will grow.
“The corporate reticence has been palpable in our newsroom — we’re seeing major advertisers pull back from Pride sponsorships and LGBTQ+ marketing,” Benjamin Jenkins, publisher of Pride Source Media, said. “But what’s fascinating is how quickly local businesses are recognizing the opportunity these national corporations are leaving on the table.”
Long-term business consequences ahead
The survey response showed a clear understanding of market dynamics with 85% expecting companies to face long-term business consequences for cutting back their LGBTQ+ support. The majority believe these companies will lose both LGBTQ+ customers and their allies.
“Smart local businesses are stepping up their LGBTQ+ outreach right now, knowing they can capture market share and build incredible loyalty while their bigger competitors retreat,” Jenkins noted.
After Target rolled back its DEI programs, its stocks have plummeted nearly 34% since January and hit five-year lows. Foot traffic has also dropped nearly 10%.
Target issued an announcement, just four days after President Donald Trump’s inauguration, stating that it planned to eliminate hiring goals for minority employees and “stressed the need for staying in step with the evolving external landscape.”
Despite the rollback, the company still released an annual Pride collection.
Among the respondents whose companies previously sponsored Pride events but are no longer planning to do so, over 60% said they will either actively avoid the company’s products or that it negatively affects their perception of said company.
Several Pride parades were also short on cash. NYC Pride faced a $750,000 budget gap after losing corporate sponsors, according to its website. Mastercard, Citi, Pepsi, Nissan and PwC pulled sponsorship from NYC Pride. NYC Pride launched a peer-to-peer fundraising campaign to help cover production cost and support for the LGBTQ+ artists.
Pride parades in San Francisco and Kansas City were each about $200,000 short. For Chicago Pride, some of the corporate sponsors that were sponsoring Pride in 2024 did not sponsor this year’s parade. Some of those companies include Dyson, Nivea and Tiffany & Co.
In 2024, the Capital One Café sponsored Miami Beach Pride, however the company was not a sponsor this year. St Pete Pride has also faced headwinds this year.
There are still companies showing support, regardless of Pride Month. Liberty Mutual Insurance, PayPal, Grubhub, Adobe and others have shown support of the LGBTQ+ initiatives.
Beyond the passive consumption lies active advocacy
The survey revealed that LGBTQ+ consumers are willing to go beyond personal purchasing decisions to drive change. When asked what respondents would do when companies reduce LGBTQ+ support, they would:
- Stop buying products/services (85%)
- Voice concerns on social media (65%)
- Sign or support petitions advocating for corporate LGBTQ+ inclusion (70%)
- Actively support competitors who maintain LGBTQ+ commitments (85%)
“With this bizarre attack on diversity and retreat of national corporate support for our community, the door is open for our local business to step up and reap the benefits of supporting their LGBTQ+ siblings,” Todd says.
For more information about the National LGBT Media Association, visit NationalLGBTMediaAssociation.com.
