The news: Target has launched the Roundel Media Fund, which will be granting more than $25 million in paid media to diverse-owned/founded firms by 2025, per the retailer’s corporate blog.
Brands take note: Target isn’t the only major player supporting racial equity through its approach to advertising and media spend.
Zoom out: Diversity is important to consumers, but it's not everything. At least 7.7% of US black adults cite a retailer's corporate social responsibility initiatives as an impetus for purchasing from them, lagging far behind more pressing criteria like deals/promotions (48.6%) and everyday pricing (40.5%).
Why it matters: Over 20 diverse-owned firms that participated in a test of Target’s fund during Black History Month averaged a 40% surge in revenue.
Go further: Listen to our Brand Anatomy podcast conversation with Sephora on how the retailer saw 96.8% positive feedback on its recent DEI campaign here.
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