‘We can’t cry about the milk that’s spilled’: As DE&I fallout continues, multicultural agencies grapple with changes

Of note:

Brands like Ford Motors, John Deere and Molson Coors, among others, have reversed course on their diversity, equity and inclusion commitments. The shift is leaving multicultural and diverse-owned agencies grappling with the fallout.

With a polarizing presidential election coming to a head tomorrow, hot-button issues like reproductive rights and affirmative action are now front and center. Over the past year, brands like Target and Bud Light have faced backlash for marketing campaigns and other work deemed woke. Since then, some brands have been increasingly steering clear of the so-called culture wars, quietly walking back DE&I commitments made in the post-George Floyd murder era. 

Notably, consumer spending has slowed and marketing budgets are facing constraints as economic uncertainty looms, making it easier for brands to make the case to divest from diversity efforts. Meaning, walking back the commitment is more a result of the need to tighten belts rather than a push to upend diversity initiatives, industry experts say.

That reversal has left multicultural and diverse-owned agencies dealing with the about-face from the boom seen at the height of the Black Lives Matter movement and subsequent DE&I commitments.

“It has definitely affected us,” said Dawn Wade, managing partner and chief strategy officer at NIMBUS, a Black-owned marketing agency. “We have many customers or clients who their DEI budgets were just completely cut.” In some instances, Wade added, diversity initiatives were axed, shifting dollars toward general marketing initiatives. It’s a stark comparison to 2020, when “phones were ringing off the hook,” she said, noting the agency had to turn work down to avoid onboarding too many clients at once, thus overloading the business. The agency has maintained around 20 clients since 2020. 

Recently, the agency lost a client whose diversity budget was completely slashed, she said. Meanwhile, some other clients have been in limbo, trying to find workarounds in light of DE&I budget cuts. (Wade did not offer the names of specific clients or budget figures.) 

Other multicultural marketers tell a similar story, noting the pendulum of brands’ commitment to diversity now swinging toward divestment out of fear of the so-called culture wars. At BGD Media, a multicultural and independently-owned marketing agency, potential clients have recently put conversations around working together on hold until 2025, said Latoya Bond, CMO of BGD Media. 

Source: ‘We can’t cry about the milk that’s spilled’: As DE&I fallout continues, multicultural agencies grapple with changes