Legal cannabis is worth roughly $13.6 billion in the United States, growing at about 32 percent year-over-year. Even though federal law treats cannabis as a controlled substance, states continue to legalize its sale and use. As a result, promoting cannabis products (and related products such as CBD oil) online is a murky but a rapidly evolving affair. Major platforms such as Facebook prohibit the advertising of cannabis products for sale but permit Facebook pages and content sharing that falls short of directly offering to sell cannabis. But the tide is changing as Facebook and Google look at loosening their standards to keep pace with state and federal laws. There is just too much potential revenue from cannabis related advertising to remain inflexible.
In light of the progressing world of cannabis promotion online, we’ve published answers to some commonly asked questions about this topic. These are based on our client work with cannabis brands, both retailers and growers:
It’s tempting to dive into the restrictions surrounding cannabis marketing. But one thing cannabis marketing has in common with all other forms of online marketing is this: you need to have a strategy for moving your audience through the marketing funnel. Yes, restrictions exist (and we discuss those below), but those restrictions are manageable.
At the top of the funnel, you can use a variety of tactics to make yourself known to an audience. Those tactics range include a strategy campaign that spans carefully vetted native advertising, social media, programmatic, and display. Once they become a connected audience, you can understand their interests, preferences, and behaviors. This is done through a carefully constructed customer journey and content strategy. When the prospect provides you their contact information (e.g., email), the conversation changes dramatically. For instance, you can market particular products to them.
Google prohibits advertising that promotes cannabis products. Running standard ads on Google promoting cannabis products and their sale will run afoul with Google’s policies creating potential trouble for your brand and likely cause serious damage to your online presence. But the promotion of CBD oil is acceptable so long as the CBD oil does not contain THC. Here are some latest suggested approaches for digitally promoting cannabis/CBD products, per se:
All that said, promoting CBD products on Google is, at best, a proceed-with-extreme caution scenario. But the rules of engagement are changing rapidly, so stay tuned.
Yes. Some platforms are emerging to make advertising available to premium publishers online. They include:
The ground rules are restrictive, and definitely unsympathetic to cannabis and CBD brands. As with Google, major social media networks prohibit promoting the sale of cannabis because federal laws still ban their sale. But cannabis brands are very carefully learning how to find creative workarounds to bolster their social presence nevertheless.
Let’s take a look at Facebook and Instagram given their size.
Only recently has Facebook even allowed cannabis brands to operate pages at all, and even so, under strict guidelines. For example, a cannabis brand’s Facebook page cannot say that a product is for sale, trade, or delivery; ask people to buy a product; or list prices. You cannot show images that depict the sale of cannabis products, and you cannot post anything that instructs people how to grow or sell cannabis.
But brands can post educational content and advocacy content. They can even post images of products so long as there is no suggestion that the products are for sale or delivery.
And for Instagram (which is owned by Facebook)? Well, according to Instagram’s community standards, “buying or selling firearms and illegal or prescription drugs (even if it’s legal in your region) is not allowed.” So forget about selling cannabis products on Instagram given marijuana’s illegal status at the federal level.
As with Facebook, it’s possible for cannabis companies to have accounts so long as they tread carefully. Cannabis brands cannot reference prices, sales, offers, product menus, links to stores, or images of cannabis and cannabis products. So brands have gotten creative by featuring their people or lifestyles in images (as with this example).
The good news for cannabis companies is that a number of social media sites cater to their customers and welcome their presence. They include:
You have plenty of tools at your disposal. They include:
The major digital marketing platforms have historically stayed very closely aligned with Federal regulatory definitions and classifications. We expect that as federal definitions and regulation relax, Google and Facebook will also relax their own restrictions. When they do, be prepared to select a budget to test on their platforms as soon as possible.
For more insight, contact Investis Digital. We’re helping cannabis brands build their business.