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Intention isn’t lacking. The funds are real. Since 2020, holding companies and brands have committed millions of advertising dollars to Black and minority-owned media, but too many of those dollars are sitting in the accounts into which they were deposited.
What’s holding them back? Is it demand? Or is it supply?
There is no lack of desire, but a lack of inventory. While there is no shortage of premium content or programming, the ecosystem is fragmented enough that it is hard to put capital directly into the hands of minority-owned media companies.
The good news is that there are several key players in the market working tirelessly to change that. Brands would be wise to educate themselves on how these companies are shoring up inventory so they can continue putting their committed dollars to work in new ways and places.
Spotlight on minority-owned businesses
As marketers try to push dollars top-down into the marketplace, these companies are successfully pushing dollars up into the ecosystem from its foundation, infusing creators and talent with resources that result in more content and programming.
Spotter
Spotter is one of the leaders of the pack; the company is committed to fueling diverse creators with the cash and resources they need to create.
Spotter empowers YouTubers to accelerate their business and unleash their full creative potential by giving them access to capital, which includes knowledge, and community, to succeed at scale. The company has given $740 million to creators as of Q4 2022 and plans to reach $1 billion in total creator funding in the first half of 2023.
What makes this a particularly encouraging data point for pledge makers is that 30% of that $740 million has been deployed to a diverse roster of creators from multicultural and diverse backgrounds; Aaron “AB” Brown, Deestroying, Lizzy Capri and Kinigra Deon, to name a few.
Group Black
Group Black is also working to build the marketplace. Launched in June 2021 with the goal of getting advertisers to deploy $500 million in ad dollars to Black-owned media businesses, the company invests in and takes ownership of Black-owned media companies. With over 150 portfolio companies, they have poured funding into the media sector, helping it grow and making it easier for brands and agencies to meet their DEI media investment commitments.
