The cannabis industry has been completely transformed over the past few years. Once criminalized and ostracized, businesses can now operate freely in the US, UK, Canada, and several other countries worldwide. Cannabis legalization in 2018 was a game-changer, and businesses in the niche are now thriving.
Establishing a cannabis business today is pretty much the same as starting any other company. With a few licenses, registration, and a thought-out business plan, you’ll be good to go.
However, starting a business in the cannabis industry and setting it on a path to success are two very different things. To ensure that your business thrives and outperforms the competition, you need a well-designed cannabis marketing strategy that spreads brand awareness, expands audiences, and establishes an impeccable brand reputation.
Unfortunately, this is often easier said than done. Despite cannabis legalization around the world, there are still many restrictions on cannabis marketing that you’ll need to respect. After all, marketing cannabis products is quite different from marketing sneakers, electronics, or other goods. It’s a bit more controversial and thus warrants more regulation.
But, just because it isn’t easy doesn’t mean that you should give up. Take a look at this thorough cannabis marketing guide for 2023 and see some of the best strategies for success.
Index
- What Is Cannabis?
- Different types of cannabis;
- How Big Is the Cannabis Market?
- The Marketing Challenges Cannabis Brands Face;
- Negative connotations;
- Cannabis legalization;
- The reluctance of marketing firms;
- Why Cannabis Marketing Is So Important;
- Establishing a strong brand presence;
- Educating target audiences;
- Standing out from the competition;
- What Can’t You Say With Cannabis Advertising?
- Making health claims;
- Recommending cannabis as a therapy substitute;
- Recommending cannabis to minors;
- Cannabis Advertising Restrictions in 2023;
- The Key to Marketing a Cannabis Company: Brand;
- 7 Strategies to Market Cannabis Online in 2023;
- Cannabis marketing research;
- Cannabis SEO marketing;
- Link building for cannabis companies;
- Cannabis content marketing;
- Guest blogging on informational cannabis sites;
- Cannabis email marketing;
- Cannabis influencer marketing;
- What Advertisers Need to Do Next;
- Conclusion;
What Is Cannabis?
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If you’re going to start a cannabis business and begin working with a cannabis marketing consultant, you first have to get acquainted with your product. You need to know what it is, how it’s used and why it’s used. So, let’s get started with the basics – what is cannabis?
It’s a plant like any other – it needs plenty of light and moisture to grow, it blooms when in season, requires healthy soil, etc. What makes it unique is that it can be harvested, dried, and used as a medicinal or recreational drug.
Cannabis is packed with hundreds of potentially beneficial compounds – cannabinoids, terpenes, and flavonoids. Some of those compounds are psychoactive substances like THC; others are substances with no psychoactive properties whatsoever, such as CBD. Recreational cannabis users generally prefer the THC-rich cannabis strains, while medicinal users go for the less psychoactive variety.
But whether it’s used for its potential health benefits or just for fun, cannabis is generally consumed in the same way. The dried plant is commonly rolled up in a joint and smoked. Its dried byproducts can also be used with dry herb vaporizers and hookahs; they can be mixed up with food and drinks, taken as edible gummies, extracted into oral drops, concentrates, and more.
As new findings keep popping up about the impact of cannabis on overall health, more and more consumers are becoming interested in giving it a try (for both recreational and medicinal purposes). As a cannabis business owner, you need to keep a close eye on new research and keep getting informed about your products so that you can adjust your business and cannabis marketing strategies.
Different types of cannabis
As you’re probably well aware, there isn’t just one type of cannabis. There are hundreds of strains with different cannabinoid, terpene, and flavonoid combinations and concentrations – cannabis Indica, cannabis Sativa, cannabis Ruderalis, and all their species and subspecies.
However, what matters to you and your business is that you can differentiate between hemp and marijuana.
Scientifically speaking, hemp and marijuana are the same species; they’re simply two different names for the same thing – cannabis. However, legally speaking, they’re quite different, and they’re treated differently.
Hemp is the legal variety. It’s used for industrial and medicinal purposes, and it’s the one that you’ll be dealing with the most. It has a high concentration of non-psychoactive compounds like CBD and less than 0.3% THC.
Marijuana is mostly illegal in most countries. It’s generally used for recreational purposes and has high THC concentrations, with some strains boasting well over 28% THC. You cannot legally possess, harvest, or sell marijuana or any cannabis variety with THC concentrations higher than 0.3%.
How Big Is the Cannabis Market?
Ever since cannabis legalization, the global market has been expanding at exponential rates. In 2020, the global cannabis market was valued at $20.5 billion. By 2026, it’s expected to reach the value of $90.4 billion, achieving a compound annual growth rate of 28%.
The top countries holding the biggest market share include:
- Asia Pacific;
- North America;
- Europe;
- Latin America;
- The Middle East and Africa;
As it’s becoming more evident how beneficial cannabis can be, the number of users continues to increase. Currently, there are well over 250 million cannabis users worldwide. It’s expected that the number will keep growing as new dispensaries and businesses in the industry set up shop and try to profit from the developing market.
While this does mean that competition is only getting fiercer, it also indicates that the possibility for profit is greater. In the US alone, sales of legal cannabis are expected to reach $24.07 billion by 2025.
Whether your business will get a chunk of those sales depends entirely on your cannabis marketing plan. The only way to succeed in this thriving market is by developing creative approaches and distinguishing your brand from the competitors through informational, attention-grabbing marketing. However, some cannabis marketing challenges could stand in your way.
The Marketing Challenges Cannabis Brands Face
The cannabis industry is unique, so your business will have to go through some hoops to become successful. While the global market is undoubtedly thriving, presenting lucrative business opportunities to anyone willing to grab them, you’ll still face a few challenges when you start digging deeper into your cannabis marketing strategy.
Negative connotations
The biggest challenge of cannabis digital marketing is managing the negative connotations that the public still has about this beneficial plant. Support for cannabis has never been higher, and millions of adults worldwide believe that both recreational and medicinal use should be fully legalized. Still, there are plenty of those who are fearful of cannabis and its effects.
Older generations, specifically, frown upon cannabis use. Exposure to years of marketing campaigns against cannabis, “Just Say No” propaganda, and the general war on drugs has left many skeptical. Millions of people are under the impression that legal, medicinal cannabis is a gateway drug or a liberal excuse to “get high” without repercussions.
While your target audience certainly doesn’t share this sentiment, they can still be influenced by public opinion, negative connotations, and the outright stigma surrounding cannabis. So, you must approach cannabis marketing with caution and forethought. You don’t want to add oil to the fire by using the wrong jargon or leaving a sketchy impression through your marketing. Your cannabis marketing manager should help you address negative connotations and adequately educate your audiences.
Cannabis legalization
Cannabis legalization is somewhat of a complicated issue, presenting unique challenges for cannabis marketing in the US. While the 2018 Farm Bill legalized hemp on a federal level, individual states still have the freedom to decide their own exact laws regarding cannabis.
Therefore, there’s a significant disparity between cannabis laws in each state. In Alabama and Idaho, for example, cannabis is currently entirely illegal. In Virginia, only CBD oil for medicinal use is allowed, while cannabis remains illegal. In California, medical and recreational cannabis is fully legal.
The legal inconsistencies present severe obstacles for the cannabis industry and marketing, especially if you want to import/export cannabis to other states. It’s critical to stay tuned to cannabis marketing news, research the laws in your area, and find out precisely what you can and can’t do with cannabis in your state.
The reluctance of marketing firms
Due to the stigma surrounding cannabis and, at the time, ambiguous laws, many marketing firms remain reluctant to take on clients in the cannabis industry – even though the cannabis market is expanding at unprecedented rates and the profit margin is quite appealing.
Some marketing firms are fearful of how cannabis marketing would affect their reputation and public perception. Others simply don’t have enough knowledge or expertise to go around cannabis marketing restrictions and legality concerns. Whatever the case is, it can undoubtedly be a challenge to find a cannabis SEO company.
On the bright side, cannabis-specific marketing companies started popping up. They’re marketing firms like any other but focus solely on marketing cannabis and related products. They’re field experts, familiar with all the necessary laws, regulations, and cannabis marketing restrictions, making them the best choice for your new business.
Why Cannabis Marketing Is So Important
Regardless of your niche and industry, you wouldn’t be able to lift your business off the ground without proper marketing. Cannabis marketing in the US, or any other country for that matter, is what will help you attract audiences and spread the word about your brand.
Even if you have the highest quality cannabis products available, you cannot hope to boost their sales without notifying your audience about them. And this is achieved through cannabis online marketing.
Most newly established businesses struggle to get on their own two feet, so, understandably, business owners are frightful about investing thousands upon thousands of dollars into elaborate cannabis marketing plans. However, there’s no need to immediately shoot so high and break the bank on a single marketing campaign.
As a general rule of thumb, investing between 6.5% to 10% of your revenue is more than enough to get you started.
As your business grows, so can your marketing. The higher your sales, the more you’ll spend on marketing if you hope to benefit from it.
Establishing a strong brand presence;
For new businesses, cannabis marketing isn’t so much about immediately shooting up sales and turning a significant profit. Initially, it’s about establishing a strong brand presence and boosting brand awareness.
These will help you form your audiences’ first impressions and opinions, which are crucial for leading them through your sales funnel and turning them from qualified leads into loyal customers. If the initial impression is less than ideal, you could lose customers before they’ve even tried your products.
So, the primary goal of your first few cannabis marketing campaigns should be spreading brand awareness. Introduce yourself to your audiences, get the word out about your brand, emphasize your USP, and form a positive first impression. It’s the only way to attract new audiences and expand your reach.
Educating target audiences;
We’ve mentioned the stigma surrounding cannabis despite all the research pointing to the plant’s benefits. If you want to go around this stigma and shed light on the truth about cannabis, the easiest way to do it is through cannabis online marketing.
You can use your marketing campaigns to educate your audiences and explain your products’ benefits and uses. Address the common concerns, like “will using medical cannabis get me high?”, explain how cannabis works, its effects on the body and mind.
Don’t exaggerate either the advantages or the disadvantages. Simply share accurate information and keep your audiences informed.
That will help you in more ways than one. Primarily, you’ll do your part to dispel the stigma, which can only be beneficial for your business and your industry as a whole. Secondly, you’ll inspire trust among your audiences by sharing accurate, relevant information that can help them understand what cannabis is and how it can help them. Providing “edutaining” content through cannabis marketing will keep your audiences interested and engaged.
Finally, you’ll successfully establish yourself as a leader in your niche. You’ll share your knowledge and expertise with the world, showing how well you know your products inside and out. Your target audience will look to you for answers, information, and high-quality products.
Standing out from the competition;
Since the cannabis market is so competitive, you need to make a strong entrance and immediately distinguish yourself from the competition through your marketing efforts. Of course, to do this, you’ll need to perform some cannabis marketing research and find out more about your competitors, the strategies they’re employing, their brand voice and persona, and more.
Competitor research is a crucial step to take when you’re establishing your cannabis business. It will tell you everything you need to know about your main competitor’s strengths and weaknesses, their marketing approach, and their brand story.
Moreover, you’ll gain valuable insights into the overall cannabis market and your target audience. You’ll see which products most of the audience enjoys, their main complaints, what they need and want, etc. You’ll quickly identify their pain points and see how you can address them in your marketing.
Once you’ve performed competitor research, you can develop unique cannabis marketing strategies that distinguish your brand and appeal to your target audiences. You can launch innovative campaigns that get your brand noticed and allow you to outperform the competitors.
Without impactful marketing strategies, you’ll be just another cannabis brand among hundreds of others.
What Can’t You Say With Cannabis Advertising?
Whether you’re marketing cannabis oil, dry buds, extracts, concentrates, or cannabis accessories, there are certain things you simply cannot say in your advertising. Unfortunately, though, as rules regarding cannabis marketing in the US are state-specific, it can be quite difficult to discern what’s allowed and what’s not. You’ll need to check your local laws to find out about advertising restrictions relevant to your business.
As a general rule of thumb, you’ll want to avoid the following in your cannabis advertising.
Making health claims
Although there’s an abundance of research and studies suggesting that cannabis can be beneficial for your health, you cannot make unsubstantiated health claims in your advertising. You cannot state that cannabis can cure diseases, heal illnesses, or treat conditions primarily because most states forbid such claims by law. You should also avoid this because these statements are not always true.
Cannabis affects everyone differently based on various factors – age, gender, metabolism, immune system, health, diet, genetics, etc. So, while it can certainly help with some conditions, there’s no guarantee that it will work for everyone. Therefore, you cannot make such claims.
If you do want to suggest the health benefits of cannabis, never use expressions like “will treat,” “will cure,” and the like. Instead, explain its potential with phrases such as “could help” or “might alleviate.”
Never exaggerate the therapeutic potential of cannabis, but focus on providing genuine, scientifically-backed facts and information. Both your lawyer and your audience will appreciate it.
Recommending cannabis as a therapy substitute
You’re legally forbidden from recommending cannabis as a substitute for any medical therapy that consumers might be using. Regardless of the legal status of cannabis in your area, whether it’s allowed for recreational use, medicinal use, or with prescription only, you cannot suggest it as a therapy substitute in any shape or form. Otherwise, you could face legal and financial repercussions.
Recommending cannabis to minors
Under no circumstances are you allowed to market cannabis to minors. In most states, cannabis consumers need to be 18 or over, and some forbid the sale of cannabis and related products to those under 21.
It’s critical to stay on the safe side and only sell and market to adult users, without exceptions. Avoid appealing to younger audiences through jargon or imagery such as cartoon characters. Don’t place ads or billboards near schools and playgrounds, and ensure that your cannabis website has all the necessary age restrictions in place.
Cannabis Advertising Restrictions in 2023
Most businesses today rely on digital marketing to reach a broader audience and get their brands noticed. Social media ads, Google ads, sponsored posts, PPC campaigns, and more are at the core of virtually every modern marketing strategy. However, you’ll want to be careful with cannabis digital marketing. There are many restrictions you’ll need to respect if you’re going to avoid getting blacklisted.
Google, for example, prohibits the advertisement of recreational drugs such as cannabis. You cannot advertise any products related to recreational drug use (including pipes, bongs, even cannabis coffee shops), and you cannot create instructional ads regarding cannabis consumption.
Facebook and Instagram have similar restrictions. Additionally, you cannot use the depiction of cannabis consumption on these platforms or detail your pricing.
Advertising restrictions regarding cannabis are constantly changing. You’ll need to keep up with the latest cannabis marketing news to ensure you’re in full compliance. Your cannabis marketing consultant will help you follow all relevant regulations and ensure you have a marketing strategy that doesn’t break any rules.
The Key to Marketing a Cannabis Company: Brand
Since there are so many rules and regulations regarding cannabis marketing, you’ll need to get creative with your approach to get your business noticed. And that means focusing on your brand.
You cannot advertise your cannabis products and services, you cannot make health claims, you cannot recommend cannabis usage, but you can recommend your brand and share your brand story.
Building your corporate brand is what will help you stand out from the competitors, engage your audiences, and ultimately boost your sales.
It’s your brand that your audience will fall in love with, not your product. In all likelihood, your products and cannabis-related accessories aren’t that different from any others. You probably have similar suppliers and distributors. Your cannabis products have similar benefits and potential as those of your competitors, and they can be used in the same ways.
So, you need to give your audiences a reason to notice you and start doing business with you. You need to create a compelling brand story, develop an engaging brand persona, come up with a unique USP, and establish a unified brand presence. It’s the key to succeeding in this competitive market and to enhancing your cannabis marketing.
7 Strategies to Market Cannabis Online in 2023
While there are many strategies that you and your cannabis marketing manager cannot employ, there are many more that you can. Take a look at the most effective cannabis marketing strategies for your business.
- Cannabis media coverage
Although digital marketing is the most effective way to get your brand noticed, that’s not a reason to completely forego the old-fashioned print advertising. Reach out to relevant magazines and media outlets that make sense for your niche, and see whether your brand can get some coverage there.
As the cannabis industry is currently thriving, the chances are that online and offline media outlets will jump at the opportunity to discuss and write articles about businesses in the niche. You can place brand ads in print, schedule interviews to discuss your business, or even get reviews.
Some of the most popular publications include Cannabis Culture, Strain Insider, Cannabis Business Times, and CBD Health and Wellness. You can even reach out to magazines like Forbes to get some positive coverage.
- Cannabis SEO marketing
While you can’t make use of paid ads on search engines, you can boost your organic traffic by focusing on cannabis SEO marketing.
Cannabis SEO works in the same way as it does for any other product or industry. On-page SEO involves optimizing your site for mobile, boosting your loading speed, using relevant cannabis keywords, and more. Many of the strategies we’ll discuss below are closely connected with SEO and will help you improve your ranking on search results pages.
It’s in your best interest to hire a cannabis SEO company to enhance every aspect of your website for the best SERP ranking.
- Link building for cannabis companies
Link building for cannabis companies is of the utmost importance, especially for new businesses that are still trying to make a name for themselves.
Using cannabis backlinks essentially means having other websites link back to your own. That accomplishes several things – it expands your audience since the site that includes your cannabis backlinks has unique visitors, it tells search engines that your site is trustworthy since another site recommends you, and it helps you establish your brand as an authority in your niche since the site will use your links as “further reading” or “relevant research.”
You need to keep relevance in mind with link building for cannabis because you only want your links to appear on high-authority websites. Your cannabis backlinks agency will make sure to reach out only to relevant, high-quality domains, but you’ll still want to know where your brand’s mentioned.
If you have cannabis backlinks from spammy sites with a bad reputation, you could hurt your SERP rankings and damage your own reputation.
- Cannabis content marketing
Content is king in digital marketing. It allows you to include all the relevant cannabis keywords naturally and effectively – web crawlers don’t like keyword stuffing and will punish your site if your content isn’t high-quality.
Cannabis content marketing allows you to share valuable information with your audiences, keep them educated and engaged, and keep them on your site longer. It enables you to improve your SERP ranking, boost your SEO efforts, and increase your website traffic.
Cannabis content marketing can come in many shapes and forms – you can create blog posts, infographics, instructional text, share social media posts, include funny quizzes, use video content, and so much more. Whether you’re marketing cannabis oil, edibles, dry herb, or paraphernalia, you can create content that’s relevant and valuable to your audiences.
- Guest blogging on informational cannabis sites
Guest blogging can be a major part of your link-building and cannabis content marketing strategies. It involves creating valuable content and publishing it on another site. Usually, your cannabis backlinks agency will simply partner with relevant sites and have them create their own content with your backlinks, but your agency can also create guest blog posts that retain your brand voice and persona. It’s a great way to get your brand noticed.
- Cannabis email marketing
The old-fashioned cannabis email marketing is still one of the best strategies you can employ. However, you’ll first need to create your mailing list.
To get started, you could include email capture forms on your website to collect visitor information. Just make sure to offer something of value in return as most visitors don’t like giving out their email addresses and having their inboxes filled with junk mail.
The most effective approach for capturing email information is providing rewards and discounts. Anyone who signs up for your newsletter, for example, could get 10% off on their first purchase or receive a gift with their subscription box.
- Cannabis influencer marketing
The best way to go around social media marketing restrictions and regulations is by investing in cannabis influencer marketing. For every $1 they spend on influencer marketing, businesses earn $5.20 on average. That’s an excellent ROI that can truly make an impact on your bottom line.
Most consumers trust influencer recommendations as much as they do friends and family. By partnering with the right person for your cannabis influencer marketing, you’ll enjoy a better reputation among your audiences and boost lead generation with relative ease since the trust consumers have in influencers will reflect on your brand.
What Advertisers Need to Do Next
After deploying these strategies, it’s critical to perform cannabis marketing analytics and adapt your approach as needed. There’s no such thing as a bulletproof strategy for success, so you’ll need to keep analyzing your performance and keep tweaking your strategies.
However, keep in mind that organic marketing strategies take time. Unlike paid advertising and PPC campaigns, which offer instant but short-lived results, organic marketing is an ongoing strategy that works overtime to provide long-term effects.
Once you’ve seen an improvement in your lead generation, you need to keep working on nurturing the relationship with your leads and slowly guiding them through your sales funnel.
Conclusion
Cannabis marketing can be a real challenge for new business owners, but with the right cannabis SEO company and the right approach, it can make quite an impact on your brand. Keep tweaking your strategies and keep an eye on your cannabis marketing analytics to pinpoint your strengths and weaknesses and perfect your marketing.
