Diversity in advertising is often framed as a question of ethics. New research suggests it may be just as much a question of economics.
Uzma Khan, an associate professor of marketing at the University of Miami Patti and Allan Herbert Business School, is taking a different approach. It is one that is grounded in business outcomes rather than moral arguments.
"This research is ethics agnostic," Khan said.
Instead, her research examines whether diversity in advertising delivers measurable value to companies and how it influences consumer behavior.
Her findings suggest that it does.
Khan's work shows that when consumers see diversity in advertisements—whether across race, age or nationality—they infer that the brand offers a wider range of products and services. That perception alone can drive stronger brand impressions, increased purchase intent and even a willingness to pay more.
"People assume that if you're catering to different types of individuals, you must be offering more variety," she said.
Those inferences happen quickly and often subconsciously. Consumers tend to associate visible differences with differences in needs and experiences, leading them to believe a brand is equipped to serve a broader audience, even when the actual product offering remains unchanged.
In one study, participants viewed advertisements for identical products, such as basic clothing items. The only difference was the diversity of the models featured. Those exposed to more diverse ads believed the brand was more creative and offered greater variety, were more likely to choose the brand, and indicated they would pay more for the same products.
The research challenges long-standing assumptions in marketing, where diversity has traditionally been used as a targeting tool to reach specific demographic groups.
"Most of the research has focused on matching consumers' demographics to the models in the ads," Khan said. "We're showing that diversity has a broader effect. It influences consumers who are not even represented in the ad."
That shift has practical implications for brands, particularly as they balance authenticity with strategy. Khan cautions that diversity efforts must be intentional from the outset, rather than reactive responses to public criticism.
"Anything that is reactive is not going to be seen as sincere," she said.
Looking ahead, Khan believes advances in data and technology, including artificial intelligence, will make it easier for companies to test and refine their advertising strategies.
Her hope is that marketers begin to rethink traditional approaches to segmentation and targeting, using new tools to better understand how consumers respond to representation in real time.
"We have access to tools and data that allow us to test these ideas much more easily," she said.
As brands continue to evolve their messaging, Khan's research suggests that diversity in advertising may be more than a cultural conversation—it may be a business advantage.
