Madison Avenue made sweeping commitments to support Black-owned businesses and media networks following the 2020 murders of George Floyd, Breonna Taylor, Ahmaud Arbery and other Black Americans. But now that the #BlackLivesMatter hashtag has stopped trending as widely and black-square profile pictures have been replaced, have brands and agencies made good on their pledges?
“One-hundred percent I believe that the market has moved,” said Revolt CEO Detavio Samuels, a former Interactive One executive who was hired by Revolt in 2020 and elevated to lead Sean “Diddy” Combs’ media company in 2021.
“This was a history-setting, record-breaking year for Revolt,” Samuels said of 2021, suggesting that the fast-growing brand—which also launched an app for mobile and connected TV in November—was a beneficiary of more than just the unprecedented client-side demand for ad inventory that was recorded by many media companies.
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“It is also because there are a handful of brands and a handful of major media agencies that are showing up in a big way,” said Samuels, noting that Revolt added 75 new clients and reaped the rewards of ad deals with AT&T, Cadillac and Comcast. “I think most of us saw that growth,” he said of his peers in the Black-owned media sphere. “I think many of us have been able to [double] our advertising.”
At the end of last year, Revolt announced yet another addition to that roster of partners: Target. It's working with the retail giant to create a new business pitch competition series dubbed “Bet on Black,” which will debut on Revolt’s TV and digital channels in January. The show is also an opportunity for Target, which has pledged 5% of its annual media budget to Black-owned media companies starting in 2022, to back entrepreneurs of color by providing $500,000 in funding for the start-ups featured on the show without requiring any equity stake in return as is common practice on some similar shows, such as “Shark Tank.”
Supporting Black communities
Target is one of several high-profile brands that made commitments to shift more of their ad budgets to Black-owned media over the next several years. General Motors in April said it would increase its advertising spending on Black-owned media to 4% by 2022 and 8% by 2025 following allegations by leaders of Black-owned media channels that the automaker was ignoring requests for meetings.
To this end, General Motors hosted a Diverse-Owned Media Summit in 2021, which a spokesperson said was attended by more than 200 companies. The company is on track to exceed its commitment to increase spending with Black-owned media by 2% in 2021, according to the spokesperson, increasing its total number of Black-owned media partnerships to 23 from nine, and increasing spending with all of its Black-owned media partners. It is also offering 30-day payment terms to diverse media companies.
Coca-Cola said in June that it would nearly double its media spend with minority-owned companies over the next three years, pledging that no less than 8% of its yearly ad budget will be directed to Black-, Hispanic- and Asian American-owned platforms and their partners by 2024.
Verizon also pledged to increase spending in Black-owned media companies as part of its new responsible marketing action plan. The company said it would spend at least 2% of its ad budget with Black-owned media. Verizon also partnered with Byron Allen's media company in the spring to host a Black-owned media summit.
Verizon is “on track to exceed” the $25 million it previously committed to spend with Black-owned media companies in 2021, said Tony Wells, chief media officer.
“While we’ve made significant progress, it’s clear that there is more work to be done and more meaningful actions to take,” Wells said. “We believe that collaboration is the most powerful catalyst for change. Whether it be collaboration with our agency partners, competitors, and the industry at large, collaboration is essential to progress.”
Wells declined to go into detail on any new Black-owned media partnerships that Verizon has forged or is developing.
Likewise, ad agencies have committed to uplift BIPOC-owned businesses in the media world, with many prominent holding companies and their lengthy client rosters vowing to increase their annual spend with Black media.
WPP’s GroupM called in May for its clients to invest at least 2% of their marketing dollars in Black-owned media over the next year. That same month, IPG Mediabrands committed to invest a minimum of 5% in Black media across all of its clients in aggregate by 2023, and Dentsu urged its clients to publicly reveal just how much of their spending is placed with minority-owned media companies.
Mediabrands’ initial three-year plan is progressing at “a very nice pace,” said Dani Benowitz, U.S. president of Magna, Mediabrands’ global media and investment intelligence company. She added that in the approximately eight months since making its initial pledge, the IPG-owned agency has increased its spend with Black-owned media—both new and existing partners—by 245%, citing newly forged agreements with companies including ReachTV, which owns airport TVs; Group Black, a media collective and accelerator focused on the advancement of Black-owned media properties; and Ebony and Jet magazines. It's worth noting that the triple-digit increase comes off a very small base.
On top of its near-term investment, Mediabrands is also planning a second edition of its so-called “Equity Upfront,” the first iteration of which was hosted in March for minority-owned media companies that are often overlooked in upfront dealmaking. Brands featured included Essence Communications, Allen Media Group and Urban One.
But unlike its inaugural event last year, which Benowitz noted was “[thrown] together in six weeks,” Mediabrands will expand on the event. “We are going to do a proper event in the spring,” she said.
A GroupM spokesperson declined to provide an update on these initiatives.