Pink Money: Why You Should Advertise to LGBTQ+ People in LATAM

Sexual and gender minorities in Latin America have historically experienced fewer legal protections than their heterosexual, gender-normative counterparts (Malta et. al., 2019). To date, in most Latin American countries, they have also received considerably less support than the LGBTQ+ community in some other regions of the world.

While there has been progress in recent years, we must acknowledge that not all countries in Latin America are at the same stage when it comes to LGBTQ+ rights, nor do they all share the same level of acceptance towards those populations. 

The limitations and opportunities for the LGBTQ+ community vary significantly from one country to another. This landscape affects public discourse, and consequently, determines what companies tend to talk about.

As an example, in most LATAM countries, there are currently very limited marketing initiatives catering to these minorities. Most of them only happen during June (pride month in most parts of the world). So, is there space to talk about the LGBTQ+ in LATAM? Is it a niche that’s ready to be explored, or is this a subject that’s still too sensitive to touch on in the region? 

The Current Landscape of LGBTQ+ Rights Across LATAM Countries

As we said before - and we can’t stress this enough - the current state of LGBTQ+ rights is incredibly varied across Latin America. According to the 2023 Ipsos global report on LGBTQ+ Pride, Brazil has the highest concentration (15%) of LGBTQ+ adults of any other country in the world, staying way ahead of the 9% average, while Peru has the lowest (4%).

Argentina leads the Americas on same-sex marriage acceptance (70%), ahead of Canada and the U.S. On the other end of the spectrum, Latin American countries occupy 5 out of the top 6 positions of perceived transgender discrimination on the global list.

 Beyond just the social climate, however, the actual legislation around the LGBTQ+ community in LATAM has to be analyzed. While the decriminalization of sexual activity between consenting adults of the same sex has happened in all countries in the region (Statista, 2023), it's crucial to recognize that legality doesn't equate to acceptance.

Regardless of the privileged position some LATAM countries occupy when it comes to social acceptance, as we previously highlighted, opposition and disapproval still persist in several countries due to various factors, with religion being a primary one. 

Only a select number of countries recognize same-sex civil unions: Argentina, Brazil, Bolivia, Chile, Costa Rica, Colombia, Cuba, Ecuador, Martinique, Puerto Rico, Saint Barthélemy, Saint Martin, French Guiana, Uruguay, and Peru.

The approximately 12 remaining Latin American nations do not acknowledge same-sex civil unions of any kind. It’s also important to remember that marriage and civil union are different things. While these countries may recognize same-sex civil unions, many do not recognize same-sex marriage. 

Just 15 out of the 26 Latin American countries have legalized same-sex marriage to date. Adding to the complexity of the situation, the existence of constitutional bans in certain countries not only denies the LGBTQ+ community this fundamental civil right, but it also leaves them exposed to heightened vulnerability (Farrell, 2021).

That’s because denying marriage rights to same-sex couples perpetuates social and economic inequalities by withholding essential benefits such as healthcare and tax advantages, inheritance rights, and the right to adopt children. 

Amidst these legal challenges, however, many countries in Latin America have taken proactive steps to ensure legal protection for the LGBTQ+ community by passing anti-discrimination laws and incorporating clauses regarding gender identity and sexual orientation into their constitutions. These legal measures provide a crucial layer of protection for sexual and gender minorities, somewhat contributing to a more inclusive and tolerant environment. 

Pink Money In LATAM: Use It, but Use It Right

When brands consider approaching new audiences with any subject in mind, they must consider the social and political environment that surrounds that population. Naturally, the same holds true when it comes to topics that can potentially be inflammatory.

A company, domestic or foreign, must carefully assess if it’s safe to explore a given matter, and what the most sensible way to do so is. On the other hand, challenges can almost always be framed as opportunities - and in a region where certain discussions are scarce, speaking out for marginalized groups can be a big differentiator.

In many parts of the world, the term “pink money” describes the purchasing power of the LGBTQ+ community (Wolny, 2023). It covers the nuances of consumer behavior in this demographic, assessing the economic impact the community has on the general market.

The term is often confused with pinkwashing (or rainbow washing), which is used to describe brands purposefully advertising towards queer populations in a superficial, often disingenuous way, such as slapping rainbow colors on the company logo during pride month and leaving it at that - or worse, doing so while funding anti-LGBTQ+ parties or policies.

The latter is a known phenomenon, but still, in the U.S., LGBTQ+ audiences are more likely to support a brand that openly represent causes they believe in (Petrock, 2021). In Latin America, brand loyalty isn’t as easy to achieve. People tend to look at companies more like companies and less like integral parts of their social world, compared to the U.S. Though, this doesn’t mean what a brand says and does gets ignored.

We spoke to people from different backgrounds (both in-person and in online forums) to open up the conversation about how they would feel seeing brands openly advertise towards LGBTQ+ demographics in their country.

Upfront, skepticism is high - some have never seen pink money marketing, and think that they would question its sincerity if they did. Others fear that brands that did it would suffer boycotts from conservative and religious populations. Many dislike the thought of a foreign company coming in and profiting off of a local marginalized group (without offering much back).

People also note that, when there is advertising (usually in countries where the state of LGBTQ+ rights is more advanced), it’s often marketed towards white audiences, missing a big section of the people that make up those marginalized groups.

In spite of all of that, there’s a prevailing sentiment that talking about a subject forces it into the public eye. Even if the visibility promoted by brands is seen as superficial, most still value the fact that it puts these conversations under the spotlight.

They may not believe brands actually care about them, but as long as they don’t feel like they’re being shamelessly exploited, people (LGBTQ+ or not) want the societal benefits that come from companies bringing up those topics. To them, normalizing diversity beats normalizing discrimination. So, even if they don’t think marketing is “real support,” some still believe it’s time brands start showing where they stand when advertising in LATAM.

In Summary: What to Do

The LGBTQ+ market in LATAM is largely untouched. For brands, there’s opportunity to connect with a section of the population that’s underrepresented and that, in many cases, may be waiting to be seen. When considering taking this route, companies should put their efforts into building trust by demonstrating cultural understanding, researching what the climate and legislation around those topics are in the country of interest, and feature people and issues that directly speak to that population.

Hiring local advisors that are in touch with the LGBTQ+ community is a good strategy for receiving up-to-date, relevant insights into how to penetrate this mostly unexplored market. Furthermore, brands should, just in case, be prepared for some backlash, and assess those risks prior to any action.

In Summary: What to Avoid

Just like they should anywhere else, brands and professionals looking to advertise to LGBTQ+ populations in LATAM should avoid inauthenticity at all costs - it can be spotted from a mile away. Latin American consumers are just as sensitive (if not more, in some cases) to being treated like an expendable resource.

Brands need to be aware of that, and work around it by trying to genuinely connect with their audience. One cannot assume that the same strategies used in the U.S. or Europe will apply. By getting to know your audience, you can also avoid accidentally inflammatory approaches, which would risk spoiling the opportunity that lies in exploring this market.