Ogilvy Pride will work alongside the agency's existing practices to help new and current clients harness the consumer spending power of LGBT individuals through brand marketing and communication programmes.
The practice was developed by Andrew Barratt and is a partner of UK LGBT rights charity, Stonewall.
Ogilvy Pride recently worked with new client truTV, an entertainment brand owned by Turner Broadcasting, on the UK launch of US reality TV show, RuPaul's Drag Race.
Barratt said: "Shifts in social attitudes and the considerable spending power of LGBT people provides huge opportunity for brands to harness Ogilvy Pride’s specialist expertise.
"By 2020 it is estimated that in London alone the traditional mainstream majority will be outnumbered by minority groups. For a global brand campaign to be truly strategic in its communications, consideration of minority consumer audiences such as LGBT is now key."
Michael Frohlich, UK CEO at Ogilvy, said: "Ogilvy Pride began as a grassroots community to champion diversity in the workplace and has quickly grown into a key specialism for the business. Ogilvy Pride both responds to, and capitalises on, the huge appetite from brands to understand and tap into LGBT audiences in order to further diversify and grow their consumer audiences."