A legal cannabis company can advertise its business using offline and online marketing methods. The most effective offline strategies for cannabis companies include in-store advertising, direct marketing at industry conferences and other events as well as street promotions in some locations depending on local regulations. Social media advertising, an example of online marketing, is a valuable tool for cannabis businesses when it comes to building brand awareness. Other methods of online marketing include SEO optimization, email and SMS campaigns, and in some locations even advertising on television and radio.

Offline Marketing Techniques

In-store advertising

Displaying products in unique and creative ways to draw attention, offering samples (if it is allowed), and using BOGO offers, coupons, and discounts, bulk deals and various types of loyalty programs to attract new customers and increase the loyalty of existing ones. The store can also offer branded items such as shirts, hats, grinders, cases/containers, etc.

Information kits for clients

Information kits may include registration forms, brochures, and general information about the use of cannabis products. They can also provide information on how to process orders.

Conferences and trade shows

Participating in cannabis-related conferences and trade shows gives businesses an opportunity to present their products and connect with individuals working in the industry. Designing creative booths enhances brand awareness and builds a strong brand image. Potential customers can be offered the chance to sample the product, if allowed by local regulations and the regulations of the cannabis expo or conference, and this can give positive exposure for the business, encouraging future purchases.

Collaborations and sponsorships

Collaborating with brands in industries connected to the cannabis industry or even those completely unrelated to it, can help to build brand recognition and potentially attract more target customers. An example of a successful collaboration is Serra’s (a chain of cannabis dispensaries) collaboration with Woodblock (an artisanal chocolatier situated in Portland). Through collaborating with Woodblock, Serra released its first edible – a collection of Serra x Woodblock Chocolate bars with cannabis as one of its ingredients – and strengthened its image as a luxury cannabis brand in the eyes of Oregonians.

Similarly, having a cannabis brand sponsored by businesses in connected industries will also help to increase brand awareness.

Online Marketing Techniques

Website

A well-designed website that is easy for consumers to navigate is essential for successful marketing. It should be easy for customers to find cannabis products they are looking for and check FAQs (Frequently Asked Questions) in case they are wondering about any of the products being offered by the business. An easy-to-use and informative website will improve customer satisfaction and increase the likelihood of customers returning to make purchases in the future, helping to build brand loyalty. Data from 2022 shows that only 51% of current customers in the cannabis product industry are excited to try new products after finding out about them. This suggests that businesses should place emphasis on making customers’ experience of ordering from their website as pleasant as possible in order to increase customer retention.

While use of paid advertising is limited due to restrictions on terms like cannabis, it may be more effective to build a strong organic following of customers using search engine optimization. Some keywords: best recreational (or medical) cannabis dispensaries (location), cannabis wholesale (location).

Social media

The social media platform X allows approved cannabis advertisers to target Canada and the United States with “informational or brand-preference content” as long as the advertisers comply with all laws and regulations and in the case of advertising in Canada, they must also be licensed by Health Canada.

On other social media platforms such as Facebook and Instagram, brands can share informational and brand-related content about cannabis in order to build brand awareness organically and encourage potential customers to find their website.

Television, radio, print and internet

Depending on state regulations, in some states it is possible to advertise on radio, television, print publications or on the internet. For example, both medical and retail cannabis businesses can promote on TV, radio, print and the internet in Colorado if they can reasonably expect that at least 71.6% of the audience is over the age of 21.

SMS marketing

SMS marketing has the highest opening rate in marketing at 98%. Using this to inform customers about discounts and loyalty rewards can be a valuable asset to a cannabis business’s marketing strategy. One example of successful use of SMS marketing is from a dispensary in Los Angeles which sent a text with a code for obtaining a discount to 21 consumers who opted-in to receive text message marketing. The Los Angeles dispensary was able to convert 14.92% of those customers to sales in 24 hours.

Email marketing

Email marketing can be an amazing way to increase traffic to the website through sending reminders about special offers or recommendations of products customers may be interested in based on their past purchases. This can add an element of personalization and build customer loyalty. Email marketing has an average ROI of “£42 for every pound spent”.

It is essential that the business follows CTIA (a trade association representing the wireless communications industry in the United States), TCPA (Telephone Consumer Protection Act), CAN-SPAM Act and other federal laws when undertaking this type of marketing. Cannabis businesses must also take care to not use words related to marijuana in their promotional text messages or emails.

Podcasts

Podcasts are not regulated and this provides the opportunity to discuss cannabis-related topics and inform the audience about cannabis products offered by businesses. Through the sharing of experiences and honest reviews by podcast owners, stigmatization can be overcome and listeners are encouraged to try cannabis products from a brand mentioned in the podcast. This allows to build close relationships with customers based on trust. Advertising through podcasts that focus on cannabis topics can help businesses to reach their target audience and increase their ROI as listeners of such podcasts are more likely to be interested in buying the brand’s products.

Influencers

Influencers’ audience is likely to include potential customers – people who are already interested in buying cannabis products. Influencers can introduce a brand’s product to their viewers and explain its benefits, helping to build brand awareness as well as trust in the brand. According to the statistics, “69% of respondents are likely to trust a friend, family member or influencer recommendation” rather than information that the brand communicates itself. This demonstrates that using influencers as part of a marketing strategy can unlock deeper trust in potential customers for cannabis products sold by a brand.

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