2024 Cannabis Advertising Trends: Navigating the Green Frontier
The cannabis industry, which includes hemp, CBD, and THC products, has experienced substantial growth in recent years. As more states legalize cannabis for both recreational and medicinal purposes, the market continues to expand. Forecasts predict the cannabis market will reach $50.7 billion in sales by 2028, an 88% increase from the $27 billion in 2022 (Brightfield Group, 2023). With this rapid expansion, cannabis marketers must skillfully navigate regulatory challenges, economic uncertainties, and an evolving digital advertising landscape.
Introduction to Pink Spot Media
At Pink Spot Media, we believe in the power of trusted strategies for optimal impact. With over 23 years of expertise, we deliver holistic, impactful campaigns that consistently exceed client goals. Our mission is to provide transformative marketing and advertising experiences that drive significant impact for our clients and their bottom line. We achieve this by leveraging our tech-driven, white-glove approach, ensuring meaningful, strategic relationships with our clients. Whether you're a small retailer or a large franchise, our personalized, holistic, omni-channel strategies are designed to cut through the noise and deliver results.
Overcoming Advertising Challenges
Operating within a stringent and varied regulatory framework, cannabis businesses must grasp and comply with diverse regulations at both the federal and state levels. To market cannabis products effectively, businesses need to leverage innovative advertising strategies while adhering to these regulations.
Key Trends and Tips for Maximizing Cannabis Ad Spend in 2024
Trend #1: Prioritizing Targeted Brand Awareness
With many consumers new to cannabis, education and brand awareness are paramount. Consumers often depend on budtender recommendations or select products based on appearance or price. To stand out, cannabis marketers should focus on educating consumers about their brands and generating interest in their products through channels like Connected TV (CTV), digital audio, and digital out-of-home (DOOH). Platforms such as Telaria and FreeWheel for CTV, cannabis-friendly podcasts, and DOOH partners like Place Exchange can be particularly effective.
Creating Consumer Personas
Marketers should identify specific consumer personas and create lifestyle content that resonates with these groups. For instance, targeting segments that enjoy cooking, gardening, or outdoor activities in addition to cannabis use can help tailor more effective advertising campaigns.
Contextual Targeting
In a privacy-first future, CTV and podcasts offer contextual targeting opportunities, allowing cannabis marketers to reach specific groups without relying on third-party cookies. This ensures that ads are seen by relevant audiences in a compliant manner.
Trend #2: Tapping Into Digital Out-Of-Home (DOOH)
While traditional out-of-home advertising is familiar to cannabis brands, 2024 should see increased investment in DOOH. DOOH combines the benefits of traditional out-of-home with digital advertising capabilities, such as targeting, tracking, optimizing, and measuring results. As more dispensaries emerge, in-store DOOH screens offer prime opportunities to reach customers ready to buy.
Advantages of DOOH
DOOH faces fewer restrictions than online advertising, allowing for more impressions from a broader audience. It provides a cost-effective way to maximize ad spend with less regulatory red tape, making it an attractive option for cannabis brands.
Trend #3: Branching Out Into Real World Engagement
In 2024, cannabis brands should invest more in real-world engagement to complement their digital strategies. Educating budtenders about products can significantly influence consumer choices in dispensaries. Additionally, participating in conferences, panels, and interviews can increase brand visibility and foster discussions about cannabis, helping to overcome advertising restrictions.
Engaging Budtenders
Budtenders play a crucial role in consumer decision-making. Investing in their education about products ensures they can provide informed recommendations, boosting sales and brand loyalty.
Industry Events
Engaging in industry events and B2B advertising opportunities helps brands connect with consumers and industry stakeholders, driving conversations and awareness in a highly regulated market.
Trend #4: Continued Digital Expansion
Increasing Brand Partnerships
Recent trends show a rise in mainstream brands partnering with cannabis companies. For example, brands like Jack in the Box, Ben & Jerry’s, Red Lobster, and BIC have launched cannabis-friendly campaigns. These partnerships are part of a growing trend as cannabis usage becomes more normalized in the U.S. (Gbemi Maiyegun, Weed for Black Women).
Experimenting with Paid Ads
With relaxed cannabis, hemp, and CBD regulations, advertisers are now experimenting with paid ads on platforms like Google, Pinterest, and Twitter. According to Lana Van Brunt, co-founder and co-CEO of Sackville & Co. cannabis company, this shift presents significant opportunities for brands to reach consumers directly.
Allocating More Ad Spend
Cannabis brands are increasing their digital marketing budgets. For instance, Kiva, a Cannabis-infused confections brand, has quadrupled its digital marketing budget, and Cann, a Cannabis-infused seltzer brand, now allocates 30-40% of its marketing dollars to digital advertising, up from 10%. This increase in ad spend is crucial for brands to compete and grow in the evolving market.
Leveraging Elon’s X
X’s recent policy changes have opened new avenues for cannabis advertising all in the name of expanded revenue goals under the newest head - Elon Musk. The platform now allows cannabis companies to post pictures of their products in ads, providing a significant opportunity for brands to connect with consumers directly. However, advertisers are still cautious about brand safety concerns on the platform that can rear their ugly heads in the form of bots, hate speech, and other KPI-crushing activity
Conclusion
As the cannabis industry continues to evolve, staying ahead of advertising trends and regulatory changes is essential for brands looking to maximize their reach and impact. By prioritizing targeted brand awareness, leveraging the benefits of DOOH, and engaging directly with consumers and industry professionals in currently available and forthcoming channels, cannabis marketers can navigate the complex regulatory landscape and achieve significant growth in 2024.
Contact Pink Spot Media to learn how we can help your retail brand maximize the potential of ROPIS and BOPIS strategies through strategic omnichannel advertising. Together, we can create a seamless, dynamic, and customer-centric shopping experience that drives growth and loyalty.