Leveraging advertising channels effectively is crucial for business growth and brand visibility. Given the unique challenges of cannabis advertising, marketers need to be innovative, compliant, and strategic in their approach.
What are Programmatic Platforms (DSPs)?
Programmatic platforms, commonly known as Demand Side Platforms (DSPs), enable advertisers to purchase advertising space efficiently and automatically. This automation is powered by data collection and algorithms, which streamline buying by selecting optimal ad impressions across various channels and formats.
In 2023 alone, the global cannabidiol market was valued at $7.71 billion. It’s also expected to grow at a compound annual growth rate (CAGR) of 15.8% from 2024 to 2030. With these, it’s essential to tap into this market
Why Programmatic Advertising Matters
The US’s global programmatic ad spend is estimated to surpass 700 billion by 2026. This position places the country alongside emerging countries such as the United Kingdom and China as one of the leading programmatic advertising markets in the world.
Here’s why programmatic advertising matters more than ever:
Automated Efficiency
Programmatic advertising automates the ad-buying process, eliminating manual negotiations and placements. This efficiency saves time and resources, allowing marketers to focus on strategy and creative development.
Global Reach
With programmatic advertising, brands can effortlessly scale their advertising efforts to reach global audiences, opening up new markets and opportunities for growth.
Real-Time Optimization
Advertisers can adjust their campaigns in real-time based on performance data, ensuring their advertising spend is continually optimized for the best possible outcomes.
Cost-Effective Targeting
The precise targeting capabilities of programmatic advertising minimize wasted impressions, ensuring that ads are only shown to the most relevant audiences. This targeted approach can lead to more efficient use of advertising budgets.
Access to Premium Inventory
Programmatic platforms provide access to a wide range of premium ad inventory across various channels and formats, often at a competitive price due to the efficiency of real-time bidding.
6 Cannabis Advertising Tips for DSPs
Whether you’re a seasoned marketer in the cannabis industry or just starting, these insights aim to equip you with the knowledge and tools needed to navigate the complexities of programmatic advertising. 1. Don’t Ignore Local Cannabis Marketing Regulations- Understanding Local Laws: Research and understand the specific cannabis advertising laws in your target markets. Regulations vary widely, and compliance is crucial.
- Be Cautious with Health Claims: Avoid stating or implying that cannabis or CBD can cure or treat medical conditions, as this can lead to legal issues.
- Target Adult Consumers: Ensure your ads clearly state that your products are for adult use only, especially when advertising infused products.
- Maintain Honesty in Advertising: To build trust and credibility, avoid making false or misleading statements in your advertising content.
- Avoid Endorsements and Testimonials: Do not use testimonials or product endorsements in your ads, as they can complicate compliance with advertising regulations.
2. Focus Your Ad on CBD Rather than Traditional Cannabis
- Highlight CBD Benefits: Emphasize the non-psychoactive benefits of CBD to navigate around stricter regulations associated with THC.
- Educate Your Audience: Use your advertising to educate consumers about the differences between CBD and THC, including legal status and usage.
- Target CBD-Friendly Platforms: Prioritize advertising platforms that are more receptive to CBD products due to their broader legal acceptance.
- Showcase Broad Spectrum Products: Promote broad-spectrum CBD products that cater to consumers looking for THC-free options.
- Leverage Health and Wellness Angles: Position your CBD products within the health and wellness sector to appeal to a broader audience.
3. Focus on Your Brand, Not Your Product
- Emphasize Brand Values: To stand out, highlight what makes your brand unique, such as sustainability, quality, or community involvement.
- Tell Your Brand Story: Use your advertising to tell a compelling story about your brand’s mission and vision.
- Build Emotional Connections: Create ads that forge an emotional connection with your audience, making your brand more memorable.
- Showcase User Experiences: Highlight positive user experiences and lifestyles associated with your brand rather than focusing solely on product features.
- Differentiate with Design: Use distinctive design elements in your advertising to make your brand visually stand out from competitors.
4. Define Your Programmatic Cannabis Goals
- Set Clear Objectives: Define what you aim to achieve with your programmatic advertising, whether it’s brand awareness, lead generation, or sales.
- Utilize Data for Targeting: Use data analytics to understand your audience and tailor your advertising goals to meet their needs and interests.
- Measure Campaign Performance: Establish key performance indicators (KPIs) to measure the success of your campaigns and adjust strategies accordingly.
- Balance Short and Long-term Goals: Plan your campaigns with short-term achievements and long-term brand building in mind.
- Allocate Budget Effectively: Determine your budget based on your advertising goals and allocate resources to the most effective channels and strategies.
5. Don’t Ignore the Human Touch
- Blend Automation with Personalization: Use programmatic tools to automate bidding and placement, but personalize ad messages to resonate with your audience.
- Incorporate Creative Storytelling: Use storytelling in your ads to connect on a human level, making your brand more relatable and engaging.
- Engage in Community Building: Use your advertising to foster a sense of community among your target audience, encouraging interaction and loyalty.
- Respond to Feedback: Monitor responses to your ads and engage with your audience, showing that you value their input and feedback.
- Utilize Human Oversight: Ensure skilled marketers review and optimize programmatic campaigns, balancing automation with strategic human insight.
6. Dissect Your Data
- Analyze Performance Data: Review data from your programmatic campaigns regularly to determine what’s working and what’s not.
- Segment Your Audience: Use data insights to segment your audience for more targeted and effective advertising.
- Optimize Campaigns Based on Insights: Adjust your advertising strategies based on data-driven insights to improve engagement and ROI.
- Personalize Ad Experiences: Use data to personalize the ad experience for different audience segments, increasing relevance and effectiveness.
- Refine Targeting Strategies: Continuously refine your targeting strategies based on data analysis to efficiently reach the most relevant audiences.
Where Can You Advertise Cannabis and CBD?
Here, we explore various avenues for advertising cannabis and CBD products, highlighting the unique opportunities and considerations for each.
Display Ads for Cannabis and CBD
To create effective display ads for cannabis or CBD, incorporating elements like your logo, high-resolution images, a compelling headline, clear copy, a call-to-action (CTA) button, and a link to your landing page is essential. The advantage of programmatic display ad campaigns is their ability to facilitate A/B testing, allowing you to refine your ads based on performance data to achieve the best conversions.
Mobile Cannabis Ads
With the surge in mobile device usage, mobile ads have become indispensable for reaching audiences. Programmatic mobile campaigns offer precision targeting based on users’ mobile activities and geographical locations, a strategy known as geofencing. Whether through cannabis-related apps or broader mobile browsing, targeting your ads to appear on smartphones and tablets is crucial for engaging today’s constantly connected consumers.
Connected TV Ads
Can you advertise cannabis on Hulu? Well, yes, and more. As households increasingly shift to CTV platforms like Hulu, Roku, Apple TV, and Sling TV, the potential for reaching a compliant audience grows. CTV ads allow for targeted messaging in an environment that’s becoming more open to cannabis-related content, providing a valuable channel for building brand awareness and engagement.
Propel Your Cannabis Brand to New Heights with CannaMack
CannaMack is a premier cannabis dispensary marketing agency dedicated to helping brands like yours thrive in the competitive cannabis market. Our team of experts specializes in crafting tailored advertising strategies that resonate with your target audience while navigating the complex regulatory environment easily. Reach out to us today, and let’s start building a brighter future for your cannabis brand together!