ANA diversity supplier survey finds gap between brand interest and spending

Brands might be paying more attention to diverse suppliers, but many marketers are still not putting their money where their mouth is, suggests a new report from the Association of National Advertisers. The report, which surveyed 89 diverse suppliers in the fourth quarter of last year, showed that although 56% of suppliers said they’ve gotten higher levels of interest from marketers, only 38% said that this interest resulted in increased spending last year. Although the 38% jump is “a significant increase,” this disparity shows “a gap between intent (measured by interest) and action (measured by investment),” according to the report. It also found that 46% of suppliers expect investment to increase this year, a figure that ANA characterized in the study as showing that “respondents are therefore optimistic about the future.” The report, called “The Marketing Community’s Support of Diverse Suppliers: The Supplier Perspective,” comes as brands face more pressure to address inequities in investment. Read more: Guide for working with diverse media suppliers The report defines suppliers as including agencies, media companies and other businesses such as consultancies or printing operations. To be considered diverse, companies must have been certified by third-party organizations ranging from Disability:IN to the National Minority Supplier Development Council. According to the report, 47% of surveyed suppliers were women-owned; 35% were Latinx-owned; 23% were Black-owned; 14% were LGBTQ+-owned; 7% were Asian-owned and 4% were owned by people with disabilities. One percent were owned by Native American and Native Alaskan people, while another 1% were businesses owned by Native Hawaiians and Pacific Islanders. The report outlined the challenges diverse suppliers face when doing business with marketers and agencies. Of surveyed suppliers, 70% said that not getting feedback when they don’t win business is a “major challenge,” followed by 59% saying that they have difficulty getting in with national advertisers and agencies. Another 59% said that they find the extended payment terms that some advertisers and agencies ask for as difficult. Examples of other issues cited included not getting clear direction on how success is measured; not having enough access to capital and inventory and staff; and difficulty navigating RFPs and legal requirements. The report also stated that the way in which “the inventory supply of diverse media lags behind demand” is a reason for lower investment, adding that “buyers could help increase inventory by co-creating content with diverse media suppliers.” It also recommended that marketers turn to non-traditional media such as sponsorships. The ANA and 4A’s published guidelines for brands and agencies on working with diverse suppliers in May 2022, and released a separate set of guidelines, this time for suppliers, in August. The report and guidelines have come as brands and agencies pledged to spend more on Black and minority-owned media over the past several years. The survey “demonstrates that our industry is moving decidedly to support diverse suppliers,” said ANA CEO Bob Liodice in a statement. The ANA is working on more guidelines to help address the issues identified in the report, particularly for companies that don’t know how to get their foot in the door.

ANA diversity supplier survey finds gap between brand interest and spending

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