Graves

Earl "Butch" Graves Jr., president-CEO of 'Black Enterprise' magazine, said the advertising industry is "licensed to practice racism" and has called for activism aimed at increasing the number of marketing dollars spent with black-owned media (via MediaBuyerPlanner). Graves said agencies that specialize in targeting blacks often are not responsible for media buying and planning for products bought by blacks, AdAge reports. "This is one of the most racist industries in this country," Graves is quoted as saying.

The comments were made at an event sponsored by the magazine to promote its annual "40 Best Companies for Diversity" special report. Graves cited figures from advertising agency Global Hue as an example of the disparity in marketing budgets and media buys: More than 20 percent of consumers who have bought a Chrysler 300C are black, yet far less than 20 percent of the vehicle's ad budget is being spent to target blacks directly.

The comments coincide with subpoenas being handed down last week by New York's Commission on Human Rights to 16 top executives from the city's advertising firms to testify in September in public hearings on agency hiring practices - with specific emphasis on the absence of blacks in senior positions.