Representation Matters: Driving Business Impact With Inclusive Holiday Advertising

As the holiday season continues, brands have a unique opportunity to craft campaigns that resonate deeply and drive sales. However, this requires advertisers to prioritize inclusivity. Kantar reported that 75 percent of consumers say a brand’s inclusivity influences their purchase decisions. Inclusive advertising isn’t just a moral imperative — it’s a necessity.

As brands look to connect strongly with their target audience during the holidays, strategic inclusion and representation can be key differentiators that drive a competitive advantage and fuel long-term business growth.

Inclusivity Drives Growth and Loyalty

Inclusive marketing is a powerful driver of brand growth and loyalty. During the holiday season, this translates directly into stronger sales. By authentically reflecting audiences, brands boost resonance and create deeper connections with people across diverse backgrounds, ages, gender, skin tones, body type and more.

Consumers who identify as people of color are 2.5 times more likely to notice and respond to a brand that prominently promotes diversity when making purchasing decisions. Among Gen Z, nearly half (49 percent) of students surveyed by Unidas claim they're more willing to purchase from a brand that has better gender representation and inclusivity in its marketing.

By committing to representation in advertising, brands not only cultivate loyalty, but also tap into significant economic opportunity. In the U.S., minority groups held a combined buying power of $4.2 trillion in 2020, projected to reach $7 trillion by 2025.

People want to see themselves in advertising, and inclusivity is about creating experiences that authentically reflect the world we live in today. This means reflecting all types of audiences across ages, gender expression, skin tone, body type, and accessibility.

Brands that embrace inclusivity can appeal to a wider range of audiences, building preference and engagement that drives improved business results.

Inclusive Advertising in Action: The Holiday Advantage

With 2024 holiday spending expected to hit a record $989 billion, brands have an unmatched opportunity to connect with audiences in meaningful ways.

Brands that prioritize inclusivity in their campaigns see stronger emotional bonds with audiences, driving engagement and profitability.

Consider Coca-Cola’s holiday campaigns, which use inclusive storytelling to evoke warmth and nostalgia. By showcasing diverse families celebrating together, Coca-Cola isn’t just selling a product — it’s offering a sense of unity that resonates across cultures. This commitment to inclusivity has made Coca-Cola a seasonal symbol worldwide.

Today’s inclusive advertising reflects a broader mix of ages, body types, race, ethnicity, gender expressions, and abilities. For example, Etsy’s latest holiday campaign features creators from across its marketplace, highlighting real people who mirror its diverse community. Etsy Chief Brand Officer Brad Minor explained, “We wanted to create a campaign that captures the emotional magic of meaningful gift-giving — how Etsy sellers create gifts that make people feel truly seen and understood.”

Marketers can amplify these efforts by investing in diverse media partnerships that resonate with specific communities, aligning with brand values. Paring inclusive creative with programs that resonate with target demographics drives personalization and strengthens brand relevance across TV and digital platforms.

The Way Forward: Make Inclusion Measurable

Inclusive advertising isn’t about checking a box; it’s about driving real progress, connections and creating measurable outcomes. During the holidays, brands should ensure that audiences feel seen and valued, enhancing the likelihood of purchase.

Artificial intelligence-driven models now enable brands to assess representation in advertising, streamlining inclusivity measurement and reducing bias. This advanced approach moves beyond single attributes, such as gender, to assess inclusivity across age, skin tone, body type, abilities, and more. Auditing creative messaging and talent for inclusivity not only holds brands accountable but also enables them to track, measure and optimize to improve representation in current and future campaigns.

In the crowded holiday market, inclusivity can be the gift that keeps on giving, driving lasting customer loyalty and business growth.

James Levy is senior vice president, global customer success at XR Extreme Reach, a global technology company that powers the creative economy.