Pride Month, first declared by President Bill Clinton in 1999, is no longer just a focus for the LGBTQ community. It's when brands turn their logos rainbow, roll out pride merch and try to show off LGBTQ credentials. But amid an unprecedented coordinated backlash on products and anti-LGBTQ legislation sweeping the US, 2023 could be a watershed moment for business participation in Pride Month.

Last week, ad agencies and organizations representing 90% of the world's advertisers tried to answer that question. In a pledge to the advocacy group Outvertising, they urged brands to back and continue pride marketing and, crucially, divest from media that spread misinformation and hate.

It's a crucial part of the picture lost in the heat of the last few weeks. Take the focus on Target.

Much of the media commentary was over the falsehood a tuck-friendly swimwear created for adults was instead aimed at children.

It was part of the age-old homophobic "groomer" narrative that paints the LGBTQ community as "perverts" with "propaganda" that tries to "recruit" people. This social contagion theory has been long studied and proved to be baseless, most recently in a Paediatrics study.

Yet, this was the theme the focus of much media reporting and punditry. Indeed, most of the social media hate towards Target. Something many advertisers - unwittingly - were funding with their ad spend.

"Advertisers are too removed from the impact of their ad spend," Marty Davies, Joint CEO of Outvertising, tells me.

"Many unknowingly funded the most extensive coordinated anti-trans campaign we've ever seen. As a collective force, business has substantial power to promote social good with values-driven investment and to render fear- and hate-mongering unprofitable in the same way: We know that 50% of news publisher revenue comes from this investment.

The misinformation that Target had created an "adult product" for children left the brand feeling nowhere to go but to pull the product entirely after threats were made to staff and stores.

Target isn't the only brand facing coordinated action from anti-LGBTQ voices. Elsewhere, Nike and Adidas have faced heat for trans-inclusive marketing. More broadly, on Pride campaigns, North Face has been a target, and this week Starbucks saw its union accuse the coffee chain of bowing to far-right anti-LGBTQ attacks by taking down rainbow decorations.

Target also isn't the only one to disenfranchise the LGBTQ community by withdrawing items and support.

Bud Light is the most vivid example and warning to brands of how poor handling Pride campaigns can damage bottom lines. Their sponsored content with trans-TikToker Dylan Mulvaney saw both sides boycotting the brand after it backpedaled on its support for trans people.

For Aby Hawker, founder of TransMission PR, a communications consultancy specializing in trans and non-binary inclusion and awareness - the lesson from this month's backlash is only to do LGBTQ marketing if you're in it for the long run.

"Short-term displays of solidarity for Pride are increasingly being called out for what they are: Blatant pinkwashing. This benefits no one, the community is turned off, the same for allies, and brands achieve very little."

Hawker says gains can be made when Pride Month is instead a display of the change you're making all year round:

"Brands need to understand how being inclusive of LGBTQ people plays into their values and develop strategies accordingly. Once brands have a clear picture of why it matters to their brand, they can bring their stakeholders along and more convincingly defend themselves against any potential backlash, ensuring they come across as authentic and with integrity."

Harriet Kingaby, Co-founder of Conscious Advertising Network, backs this up. She says actions should go beyond ad campaigns and into internal practices.

"Ensure LGBTQIA+ staff are supported and included. Ensure this applies to boardrooms and photo shoots, creative spaces and decision-making areas. Make sure there is LGBTQ input at every stage."

If brands want to tap into the growing power of the Generation-Z consumer base, navigating the nuances of marginalized communities will be crucial.

A recent study by Portland found two in three Gen-Z's think it's important to fight discrimination against LGBTQ people. Even more, three in five, want brands to play their part in creating positive change.

So what can that look like? Matt Dabrowski, CEO of OutBritain, the UK's LGBTQ Chamber of Commerce, says brands can take various actions.

He suggests a range, from dedicating profits to LGBTQ initiatives to providing pro-bono support to grassroots organizations and community centers. You could also consider whether you have LGBTQ-owned businesses in your supply chain. This, while looking internally at how your culture affects all your output:

"Consider taking the next leap forward and ensure there is enough representation in leadership and even mentorship at the c-suite level. Make sure it's geared towards inspiring the next level of potential leaders. Thinking of the future and what that looks like with us as an integral part of the picture should be at the heart of any project focusing on meaningful DEI."

Brands should also look to the increasingly "profitable" reasons to support LGBTQ people all year round. Something they should consider when it comes to planning for any backlash too. Dabrowski says there will always be bias and discrimination toward our community. So preparing for anti-LGBTQ action is part and parcel of reaping the benefits of a Pride campaign that lands well.

Brand expert Hawker says you need to risk assess the campaign, look at pushback that other brands have received, and understand the good and the bad of how they responded:

"Remember that the pushback comes from a place that is the antithesis of inclusion. So respond accordingly. Be more supportive of the community, not less."

"The often vitriolic noise generated in response to campaigns which are inclusive of trans and non-binary people should tell brands everything they need to know about why the trans community needs its allies to stand with them in solidarity."

As for whether this year's turmoil will see an end to the rainbow logo - 90% of the world's advertisers pledging to continue Pride month advertising speaks volumes.

But what might change is where we see Pride campaigns play out. In what media organizations get ad-spend from LGBTQ-inclusive brands. All the while, perhaps the real change will be how brands and agencies prepare.

To benefit from the long-term profitable value of siding with love, a universal value so much marketing relies on, brands will need to be ready to defend their actions to a vocal organised minority – even if that appears to have revenue implications in the short term. After all, as the Bud Light saga shows us, hedging your bets disenfranchises your brand to everyone.

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