Table of Contents
Key Points:
- Group Black, led by Richelieu Dennis, failed to fulfill a $500-million advertising commitment to Black-owned media.
- Despite substantial initial backing from major corporations, anticipated partnerships and deals did not materialize as expected.
- The company is now attempting to navigate a broader industry pullback on diversity and inclusion commitments made in recent years.
Group Black, co-founded in 2021 by Liberian billionaire Richelieu Dennis along with Travis Montaque and Bonin Bough, faces scrutiny for not meeting its $500-million advertising promise to Black-owned media. Initially, the company aimed to fulfill this pledge within 18 months, but it has significantly fallen short, raising doubts about its future actions and reliability.
The venture started with strong backing from major advertisers like Walmart and Coca-Cola, addressing the historic underfunding of Black-owned media, which received less than 1% of total ad dollars. A $75-million investment from GroupM, the largest media buying agency globally, and support from corporations like Proctor & Gamble initially buoyed Group Black.
Disappointments and discrepancies
However, the anticipated deals and partnerships failed to materialize over time. Todd Brown, CEO of Urban Edge Network focused on HBCU sports media, voiced his frustrations. Despite the partnerships, the promised funds did not materialize. “We only received invites to events,” Brown said, pointing out the gap between Group Black’s ambitious PR and its actual business results.
Amidst executive exits and a leave of absence by co-founder Montaque, Group Black sought to stay relevant. It acquired lifestyle network Galore Media and expanded its media partnerships to include NBCUniversal and Zeta Global. Despite these efforts, the mission to significantly boost financial support for Black-owned media is yet to be achieved.
Reflecting broader industry trends
This scenario mirrors a general pullback in corporate America from strong diversity and inclusion pledges made after George Floyd’s murder. Christopher Kenna, CEO of BA Diversity Media, highlighted a broader industry retreat. “The support for Black-owned businesses has diminished as the focus within the advertising industry shifts away,” he noted.
Group Black’s ongoing struggles underscore the difficulty of turning noble intentions into effective action, especially in a cautious economic climate returning to traditional media spending. The industry is watching to see if Group Black can recalibrate and truly revolutionize support for Black-owned media.
