This excerpt taken from the LGBT 10-K filed Mar 12, 2007.
LGBT Demographics and Media Coverage
We believe the global LGBT market remains underserved, despite recent advances in the corporate, political and social environments, and despite the attractive demographic make-up of the gay and lesbian community. For example, in the United States alone, the gay and lesbian market had estimated buying power of over $641 billion in 2006, or approximately $43,000 per capita, compared to estimated per capita buying power of $21,000 in the African-American and $18,000 in the Hispanic-American markets.
Approximately 15 million adults of the general U.S. population identify themselves as gay, lesbian, bisexual or transgender, according to The Gay and Lesbian Market in the U.S. a report published by Packaged Facts in partnership with Witeck-Combs Communications, Inc. This report also estimates that the buying power of gay and lesbian consumers in the United States will grow to approximately $835 billion by 2011.
LGBT consumers are also loyal and active Internet users. Approximately 80% percent of gay men and 76% of lesbians actively use the Internet, and 63% of gay and lesbian consumers have made purchases online, compared to 53% of heterosexual consumers, according to Forrester Research. In addition, online advertising influences gay and lesbian buying decisions: according to The Gay and Lesbian Market: New Trends, New Opportunities 4th Edition published by Packaged Facts in partnership with Witeck-Combs Communications, Inc., while only 35% of heterosexual consumers say that online advertisements influence their purchasing decisions, 42% of gay and lesbian consumers are influenced by online advertisements. The same report estimates that 78% have reported switching to brands offered by companies with a commitment to diversity.
According to a leisure travel study conducted by Harris Interactive, Witeck-Combs Communications, Inc. and the Travel Industry Association in September 2006, Gay.com is the most accessed website and The Advocate is the most accessed publication among the LGBT audience. This study also found that when seeking a travel destination or provider that is gay-friendly, LGBT magazines and websites are among the most trusted endorsement sources.
As a leading LGBT-focused company with a variety of community and marketing services and competitive strengths, we believe we are uniquely positioned to take advantage of the opportunities presented by this market.