How to Stand Out in a Complex Market

Cannabis is one of the most exciting and rewarding industries you can work in. It’s also one of the most heavily regulated, especially around advertising. As a dispensary owner or operator, it’s critical to understand the specific rules of engagement that apply across different platforms and states. In this article, we’ll share insights from a recent webinar on navigating complex cannabis advertising laws. 

The webinar panel – which included executives from the Cannabis Media Council, embarc dispensaries, and the Green Market Report – offered actionable ideas cannabis operators can use to boost brand visibility, build trust, and ultimately bring in more customers. Below are some of our top takeaways for dispensary owners – have a look, and then watch the free webinar for even more expert insights!

1. Understanding the Cannabis Advertising Landscape

The global cannabis market is expected to grow to nearly $200 billion by 2028. While that means more opportunity for everyone, heavy advertising restrictions mean it’s still challenging to reach and engage new customers. Since cannabis remains federally illegal in the U.S., advertising policies vary by state, platform, and often by media outlet. Social media platforms like Facebook, X (Twitter), and Instagram have specific restrictions limiting cannabis digital advertising and blocking direct sales or pricing information.

To address this, organizations like the Cannabis Media Council have created guidelines for responsible advertising. These frameworks encourage brands to avoid targeting minors, steer clear of health claims, and maintain transparency – all of which help cannabis brands build trust with audiences and align with advertising regulations.

2. Defining Your Product and Message

A successful ad campaign in the cannabis industry starts with a clear, defined brand message. Effective dispensary advertising should target the needs and preferences of your unique customer segments. Are your products for recreational or medical use? Do they appeal to wellness-focused customers, or are they geared toward lifestyle consumers? In what age range do most of your customers tend to fall?

Developing brand loyalty in this market requires more than catchy slogans and flashy aesthetics. Remember that the stigmas surrounding cannabis have been deeply entrenched in American culture for decades, and the best way to combat those stigmas is with transparency and factual information. Whether focusing on CBD for wellness or THC-based products for recreation, your advertising should clearly convey product benefits and be consistent across your marketing channels.

3. Effective Advertising Channels for Cannabis Brands

Cannabis brands have access to a variety of marketing channels to reach potential customers. Here are some of the most effective ways to promote dispensary advertising across both digital and traditional media.

Digital Advertising and Programmatic Platforms

Digitally advertising your dispensary on programmatic platforms can be challenging, but it also opens up serious opportunities. Programmatic advertising uses automated technology to target potential audiences in real-time across multiple platforms. A programmatic advertising strategy enables brands to track engagement, optimize targeting, and refine messaging based on performance metrics.

Of course, advertising platforms need to adhere strictly to state-specific regulations. Working with experienced digital marketing partners who can ensure each ad meets platform and local guidelines can help you avoid costly mistakes in your dispensary advertising.

Can You Advertise Cannabis on Facebook?

Facebook’s policies are strict about cannabis and CBD products, often rejecting ads that promote these products directly. To comply with Facebook’s regulations, you should avoid direct sales pitches, pricing information, and health claims. Instead, focus on brand storytelling and product education without suggesting consumption or making explicit medical claims.

Despite their dispensary advertising restrictions, Facebook and Instagram are still some of the best tools for building brand awareness. By posting organic content that resonates with users and directing traffic to non-transactional pages, you can engage potential customers without violating policies. Working with social media influencers who are compliant with platform rules can also help boost your reach significantly.

Traditional Media

For cannabis brands looking beyond digital options, traditional media channels can offer more flexibility in certain states. Local publications with a cannabis-friendly stance are often willing to accept dispensary advertising, which allows you to reach more diverse demographics with fewer restrictions. Likewise, radio and outdoor advertising may offer more direct access, though these are still subject to local advertising regulations.

Events and Sponsorships

Sponsoring industry events and hosting educational panels are effective ways to enhance brand awareness in the cannabis market. Events like cannabis expos, festivals, and trade shows allow you to connect with your audiences in a controlled, engaging environment. Consumers attending these events are already interested in cannabis, making it an ideal place for your cannabis marketing initiatives.

Events can also be extremely valuable for lead generation, allowing you to gather insights and contact information for future email marketing campaigns. Engaging consumers directly helps build loyalty and provides an opportunity to answer questions in real-time, further building that sense of trust and transparency. And remember: You don’t have to wait for other events to get your name out there. For instance, you could host educational events at your dispensary to showcase different types of products, or throw themed celebrations that play into the spirit of the season.

5. Measuring the Effectiveness of Your Ads

Since direct sales data may be difficult to attribute, tracking performance metrics is essential for optimizing your dispensary marketing efforts. Here are some key indicators to consider when measuring your digital advertising campaigns:

• Engagement Rates: Measure user interaction, clicks, shares, and likes.
• Brand Awareness: Track reach, impressions, and recall rates to assess the visibility of your campaigns.
• Audience Demographics: Analyzing the demographics of your audience can help identify which channels work best for specific segments.
• Return on Ad Spend (ROAS): For campaigns driving traffic to an informational site, calculating ROAS can provide insights on ad effectiveness.

An experienced programmatic platform partner can assist with tracking these metrics and provide accurate insights, helping you to pivot strategies and refine targeting based on actual data.

5. Regulatory Considerations and Compliance

Dispensary advertising regulations are strict and vary widely by state. Adhering to these laws requires a solid understanding of state guidelines. Some of the more standard compliance regulations include avoiding ads that appeal to minors, not making exaggerated health claims, and refraining from any imagery that depicts cannabis consumption. Brands should also avoid promoting sales prices or discounts, as many regulations prohibit incentivizing purchases directly.

Following responsible advertising practices not only keeps you compliant but also helps keep your customers safe and sets a positive standard in the industry, building long-term consumer trust.

6. The Impact of Rescheduling on Cannabis Advertising

Federal cannabis rescheduling in the United States could soon ease some of the current advertising restrictions. If cannabis is reclassified under federal law, cannabis brands – including dispensaries and retail stores – could gain access to mainstream media channels, making it easier to reach wider audiences. While these changes will undoubtedly unfold gradually over the next few years, staying informed on regulatory developments can help you adjust and adapt your strategies to maximize compliance and effectiveness.

Watch Our Free Webinar for More Insights

To learn more about navigating the complexities of cannabis advertising and get in-depth tips from industry experts, you can watch the free webinar on this page right here. You’ll hear even more about specific strategies that can help your brand thrive in a highly regulated environment and gain actionable insights tailored to cannabis operators.

Conclusion 

Cannabis advertising presents unique challenges, but by understanding the landscape, choosing the right channels, and adhering to compliance standards, dispensary owners can create impactful campaigns that connect with their target audience. With a strategic approach, cannabis businesses can overcome limitations, grow their brand, and establish a trusted presence in the market.