The Adoption of Programmatic Advertising in the Cannabis Industry

The cannabis industry is rapidly growing, and with this growth comes the need for effective marketing strategies. Programmatic advertising is a powerful tool that can be used to reach a targeted audience of cannabis consumers.

What is Programmatic Advertising?

Programmatic advertising is a form of digital advertising that uses software to automate the buying and selling of ad space. This means that advertisers can target their ads more precisely and efficiently than with traditional advertising methods.

There are many different ad formats available in programmatic advertising. Here are some of the most common:

Display ads: Display ads are the most common type of programmatic ad. They are typically images or videos that are placed on websites or apps. Display ads can be static or dynamic, and they can be targeted to a specific audience based on a variety of factors.

Native ads: Native ads are designed to blend in with the surrounding content. They are often used on social media platforms and news websites. Native ads can be text, images, or videos, and they can be targeted to a specific audience based on a variety of factors.

Video ads: Video ads are a popular way to engage users and tell a story. They can be used on websites, apps, and social media platforms. Video ads can be targeted to a specific audience based on a variety of factors, including interests, demographics, and even past purchase behavior.

Audio ads: Audio ads are a newer type of programmatic ad that is gaining popularity. They are typically used on podcasts and streaming music services. Audio ads can be targeted to a specific audience based on a variety of factors, including interests, demographics, and even past purchase behavior.

Interstitial ads: Interstitial ads are full-screen ads that appear between pieces of content. They are often used on mobile apps. Interstitial ads can be targeted to a specific audience based on a variety of factors, including interests, demographics, and even past purchase behavior.

Rewarded ads: Rewarded ads are a type of interstitial ad that rewards users for watching or interacting with the ad. The rewards can be in the form of points, coins, or other virtual items. Rewarded ads can be targeted to a specific audience based on a variety of factors, including interests, demographics, and even past purchase behavior.

The best ad format for a particular campaign will depend on the goals of the campaign and the target audience. For example, if the goal of the campaign is to increase brand awareness, then a display ad or native ad may be a good option. If the goal of the campaign is to drive traffic to a website, then a video ad or interstitial ad may be a better option.

It is important to note that not all ad formats are available on all platforms. For example, video ads are not available on all websites. It is important to choose an ad format that is available on the platforms where the target audience is most likely to be found.

The advertising of cannabidiol (CBD) products is regulated by a variety of factors, including the laws of the country or state where the ads are being run, the platform where the ads are being displayed, and the policies of the advertising network.

In the United States, the Federal Trade Commission (FTC) regulates advertising for all products, including CBD products. The FTC requires that all advertising for CBD products be truthful, not misleading, and adequately disclose all material facts. This includes disclosing the risks associated with CBD products, such as the potential for drug interactions and the lack of research on long-term safety.

The platforms where CBD ads can be run are also regulated. For example, Google and Facebook do not allow ads for CBD products that are ingested or smoked. However, they do allow ads for CBD products that are applied topically or used as dietary supplements.

Finally, the advertising networks that sell ad space also have their own policies on CBD ads. Some networks may allow all types of CBD ads, while others may only allow ads for certain types of CBD products.

It is important to research the laws and regulations in your country or state, as well as the policies of the platforms and advertising networks where you plan to run your ads, before you start advertising CBD products.

Here are some of the restrictions on CBD ads:

• Do not make any claims that CBD can cure or treat any medical condition. This is a violation of the FTC's advertising guidelines.

• Do not target ads to minors. CBD products are not intended for use by minors.

• Do not make any false or misleading claims about CBD products. This includes claims about the safety and effectiveness of CBD products.

• Disclose all material facts about CBD products, including the risks associated with their use. This includes the potential for drug interactions and the lack of research on long-term safety.

How is Programmatic Advertising used in the Cannabis Industry?

Programmatic advertising can be used to reach a targeted audience of cannabis consumers in a variety of ways. For example, advertisers can target their ads based on demographics, interests, or even past purchase behavior. This allows them to ensure that their ads are seen by the people who are most likely to be interested in their products or services.

How many percent of the Cannabis Industry is using Programmatic Advertising?

According to a recent study in 2020, about 25% of cannabis businesses are using programmatic advertising. This number is expected to grow in the coming years, as more businesses realize the benefits of this powerful marketing tool

What are the Benefits of using Programmatic Advertising for Cannabis Businesses?

There are a number of benefits to using programmatic advertising for cannabis businesses, including:

Reaching a targeted audience: Programmatic advertising allows businesses to target their ads to a specific audience of cannabis consumers, which can help them improve their return on investment (ROI).

Increase brand awareness: Programmatic advertising can help businesses increase brand awareness among cannabis consumers by exposing them to their brand repeatedly. This can help businesses build trust and familiarity with their brand, which can lead to more sales in the long run.

Drive traffic to your website or store: Programmatic advertising can help businesses drive traffic to their website or store by directing interested consumers to their online or physical location. This can help businesses generate leads and sales.

Generate leads and sales: Programmatic advertising can help businesses generate leads and sales by encouraging interested consumers to take action, such as signing up for their email list or making a purchase.

Measure results: Programmatic advertising platforms allow businesses to track the results of their campaigns, so they can see what is working and what is not. This information can be used to optimize campaigns and improve results.

Use a variety of ad formats: Programmatic advertising allows businesses to use a variety of ad formats, such as display ads, video ads, and native ads. This can help businesses to reach their target audience in a more engaging way.

Use retargeting: Retargeting is a type of programmatic advertising that allows businesses to show their ads to people who have already visited their website or app. This can help businesses to reach people who are already interested in their products or services.

What are the Challenges of using Programmatic Advertising for Cannabis Businesses?

There are a few challenges to using programmatic advertising for cannabis businesses, including:

Regulation: The cannabis industry is heavily regulated, so businesses need to make sure that their programmatic advertising campaigns comply with all applicable laws and regulations.

Fraud: There is a risk of fraud in programmatic advertising, so businesses need to take steps to protect themselves.

Complexity: Programmatic advertising can be complex, so businesses need to have the technical expertise to set up and manage their campaigns effectively.

How can Cannabis Businesses Overcome the Challenges of Programmatic Advertising?

There are a few things that cannabis businesses can do to overcome the challenges of programmatic advertising:

Work with a reputable programmatic advertising partner: There are many different programmatic advertising platforms available, so it is important to choose one that is reputable and has a good track record of success in the cannabis industry.

Set clear goals and objectives: Before you launch your campaign, it is important to set clear goals and objectives. This will help you track your results and measure the success of your campaign.

Target your audience carefully: As mentioned earlier, programmatic advertising allows you to target your ads to a specific audience. This is essential for reaching your target audience and achieving your marketing goals.

Use relevant creative: Your ad creative should be relevant to your target audience and the products or services you are promoting. This will help you capture their attention and encourage them to take action.

Track your results: It is important to track the results of your programmatic ad campaign so you can see what is working and what is not. This information can be used to optimize your campaign and improve your results.

Conclusion

Programmatic advertising is a powerful tool that can be used by cannabis businesses to reach their target audience, increase brand awareness, drive traffic, and generate leads and sales. However, it is important to be aware of the challenges and take steps to overcome them. By doing so, businesses can use programmatic advertising to achieve their marketing goals and grow their business.