The Economic Impact of Working with Diverse-Own Suppliers
Supplier diversity programs have gained momentum since 2020, when the Black Lives Matter movement significantly changed the nation’s dialogue.
In just four years, America’s 200 largest public companies announced plans to spend $50 billion with diverse-owned suppliers. While $50 billion sounds like a lot, it actually equates to just 4% of these companies' untapped revenue potential.
Committing to diverse-owned suppliers can significantly impact the economy, especially when corporations spend $.58 out of every dollar of revenue on payments to suppliers.
Reaching the true potential of diverse-owned companies—i.e., spending more than 4%—can add $1.3 trillion to the economy. According to McKinsey, diverse and women-owned companies offer their corporate partners year-over-year cost savings of 8.5%. The benefits of spending with diverse-owned suppliers are compelling and profitable.
The digital media and advertising sector has made similar commitments. For instance, in 2022, Nielsen launched its Diverse Media Equity Program to “elevate the visibility of diverse-owned media companies with advertisers and agencies.”
ANA partnered with the 4A’s to create guidelines to help marketers increase their investments in diverse media companies. They also maintain a Certified Diverse Suppliers Resource List to support supplier diversity in marketing and advertising.
Additionally, the ANA's Alliance for Inclusive and Multicultural Marketing (AIMM) focuses on increasing visibility and investment in multicultural and inclusive-owned media. It includes a comprehensive database of over 3,200 certified diverse-owned media vendors.
Despite these commitments, a 2023 study by the ANA found that just 38% of diverse-owned suppliers say they’ve received an increase in investment.
There must be a gap between a commitment to spend with diverse-owned suppliers and its actuality.
Buyer Assist by Colossus SSP
Recently, we introduced Buyer Assist by Colossus SSP, which can help buyers meet their diversity commitments. If you are a media agency or brand and work with Colossus SSP, you work with a fully diverse-owned supply chain.
DDH is only the 9th Black-owned company to go public in the U.S. Our employees are 57% women and 40% multicultural. Lashawnda Goffin, an African American woman, leads Colossus SSP itself.
But beyond meeting diversity commitments, Buyer Assist by Colossus SSP provides significant benefits to buyers, including:
- Access to general, national, multicultural, and niche audiences at scale—whether through your existing DSP or with our campaign execution assistance.
Colossus SSP nurtures diverse-owned publications through programs like Momentum. We are helping to bring minority-owned publications to the programmatic ecosystem, thereby increasing supply. - An extra set of hands when you need it. With Buyer Assist, a seasoned account team will take responsibility for planning, executing, optimizing, and reporting on campaigns on behalf of your account teams.
- We have a diverse point of view, which imbues us with a unique understanding and personal insight into these audiences. We know what it's like to be ignored and misunderstood, and this drives our commitment to ensuring our work is executed with both professional knowledge and personal experience.
- Complete marketing transparency, including every dollar spent on media and data. You won’t find any hidden fees because we don’t charge any!
The power of Buyer Assist by Colossus SSP goes beyond meeting diversity commitments; it plays a crucial role in driving economic growth by empowering diverse-owned companies. These businesses have immense growth potential, and by supporting them, we initiate a ripple effect that benefits everyone.
If you or one of your account teams is interested in Buyer Assist by Colossus, please contact Colossus SSP directly.
