The cultural wind is blowing in the wrong direction. Multicultural budgets are shrinking. “Woke” has been turned into a slur. Clients who once celebrated diversity now whisper it behind closed doors. And the same executives who built their careers touting inclusion are suddenly allergic to saying the word “equity” out loud.
For multicultural agencies, this is the toughest moment in years. The sentiment may be going one way, but the numbers —the demographics —are going the other.
Gen Z and Gen Alpha are the most racially and ethnically diverse generations in American history. Nearly half of Gen Alpha is nonwhite. Multicultural isn’t a vertical anymore; it’s the mainstream.
So the question isn’t whether multicultural agencies still matter. It’s whether they’re ready to evolve for a marketplace that’s trying to deny its own reflection.
The Perfect Storm
There are three forces converging right now:
- Shrinking budgets. In economic uncertainty, “specialty” shops are often the first to lose funding, as clients retreat to “core” spend.
- Political hostility. Anti-DEI sentiment has made brands skittish, afraid that inclusive work will spark backlash.
- Fear of the mob. Companies are paralyzed by the idea of being “canceled” by people who never bought from them in the first place.
That combination has made it easy for marketers to rationalize retreat. But retreating from diversity isn’t a strategy—it’s surrender.
The Pivot Point
To survive and thrive, multicultural agencies need to reposition themselves not as moral imperatives but as market necessities. This isn’t about “doing the right thing.” It’s about doing the smart thing.
Some pivots to consider:
- From Representation to Revenue. Lead with data. Use audience insights, purchasing power, and cultural consumption metrics to make the business case first, the moral case second.
- From Niche to Navigator. Position your agency as the expert in helping clients navigate culture, not just target it. Culture moves too fast for general-market agencies to keep up.
- From Specialist to Strategist. Move upstream. Don’t just make multicultural creative—help clients understand how diversity drives innovation, product design, and new market expansion.
- From Visibility to Vitality. Stop chasing “inclusion” as a talking point and start owning “growth” as a deliverable. Diversity isn’t a PR story; it’s a profit strategy.
The Real Opportunity
The backlash against DEI isn’t proof of its failure—it’s proof of its impact. People don’t attack what isn’t working. They attack what’s working too well.
While some brands cower, the smart ones will double down. They’ll see that the most powerful growth markets are still multicultural—Black, Latino, Asian, Indigenous, LGBTQ+, and intersectional. The opportunity is to help clients future-proof their business while everyone else retreats to the past.
The Instigation
The rhetoric may be loud, but the math is louder. America isn’t getting less diverse—it’s getting more so, by the day.
Multicultural agencies were built for this moment, even if it doesn’t feel like it. The job now isn’t to convince people diversity matters—it’s to prove that ignoring it costs money.
Because culture isn’t a cause. It’s the market.
Note: This story first appeared on Linkedin.
Corey Richardson is originally from Newport News, Va., and currently lives in Chicago, Ill. Ad guy by trade, Dad guy in life, and grilled meat enthusiast, Corey spends his time crafting words, cheering on beleaguered Washington DC sports franchises, and yelling obscenities at himself on golf courses. As the founder of The Instigation Department, you can follow him on Substack to keep up with his work.
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