For businesses in the marijuana industry, the list of marketing challenges that have to be overcome in order to raise awareness, recognition, sales, and loyalty for brands and products is very long. As part of a highly regulated industry, marijuana marketing requires deep understanding of local and state laws to ensure the companies behind the promoted brands stay out of trouble.
This might seem like an insurmountable task, but marijuana is not the only highly regulated industry. The pharmaceutical, alcohol, cigarettes and nicotine products, finance, insurance, and gambling industries are also highly regulated. I spent a decade of my career directing marketing programs for some of the largest financial companies in the world, and I can assure you that regulations made it very difficult to hype product benefits in the most effective way. Instead, messages were watered down by the legal team who, understandably, wanted to avoid more class action lawsuits.
However, the marijuana industry is a bit different than other industries. Medical marijuana isn’t provided via prescriptions that patients can pick up at a local pharmacy. Instead, in most states where medical marijuana is legal, marijuana is recommended to patients by participating doctors, and patients must register to purchase it at a local dispensary. In states where marijuana has been approved for recreational use, consumers can usually purchase it from retail locations and in many states, they can grow their own plants. Every state has different marketing rules, and many local municipalities have even more or sometimes contradicting rules. And don’t forget, marijuana is still illegal at the federal level.
For example, Washington State, where medical and recreational marijuana are legal, recently released new marijuana laws that will go into effect on June 23, 2017. These laws affect marijuana growers, processors, and retailers across the state, and the list of restrictions related to advertising and marketing is quite long. Some of the rules that marijuana license holders must follow include:
- Marijuana businesses must disclose all intellectual property licensing deals to the Washington State Liquor and Cannabis Board
- No advertising marijuana products within 1,000 feet of a school or area where children often spend time, which includes television, radio, or print ads that could be seen, heard, or distributed in those areas
- No advertising on public or private vehicles
- No marketing that targets tourists
- No marketing to children, which also means no using toys, inflatables, cartoon characters, or anything else that appeals to children in marketing efforts
- No mascots (human, animal, or mechanical such as inflatable tubes, people in costumes, or sign spinners)
- No billboard advertising unless the business is a marijuana retailer
- All outdoor advertising may only include text that identifies the marijuana licensee’s business name, the business’s location, and the type or nature of the business
- All ads must include text that says marijuana products can only be purchased by people who are 21 years of age or older
- No indoor advertisements unless minors are not permitted in the facility
- No advertising in arenas, stadiums, state fairs, shopping malls, arcades, and farmers markets
Based on information from Cannabiz Media’s Marijuana Licensing Reference Guide: 2017 Edition, most of these rules are not unusual when compared to other states’ laws. They do the job they’re intended for – significantly limiting the marketing of marijuana businesses and products.
What Should Marijuana Businesses Do?
Despite the many regulations, marijuana businesses can still promote their brands and products. They just have to get back to basics and get creative. Ultimately, the secret to success when marketing in a highly regulated industry is to promote a lifestyle rather than product or service benefits.
For marijuana businesses, the first step is to leverage print advertising in industry publications and marijuana-friendly publications. Furthermore, direct mail offers a big opportunity for marijuana businesses. Many of these traditional marketing tactics are overlooked by businesses today, but for highly regulated businesses, they’re the foundation of a successful marketing plan.
All hope isn’t lost for digital marketing either. Marijuana advertisers just have to be very familiar with their state and local marketing rules for marijuana marketing. They also need to think outside-the-box. For example, content marketing is essential. In states that allow marijuana businesses to publish blogs, blogging should be a top priority. Next, writing articles for other websites by reaching out to sites where a business’s target audience already spends time is very important. This will help businesses build credibility and brand trust that can lead to word-of-mouth marketing and sales. Keep in mind, the content should not be promotional. It should be educational, so people will want to share it with their own connections (and so the business stays out of legal trouble).
Next, businesses should think about social media, which is usually very tricky in the marijuana industry. If a business is allowed to create Twitter, Facebook, Instagram, YouTube, and other social media profiles and pages, then they absolutely should do so. If they’re not allowed to publish promotional content, they should use social media as a way to share the business’s educational content as well as educational content from other influencers.
For digital advertising, businesses look for marijuana-friendly websites or use marijuana friendly ad networks such as Mantis or Adistry. Publishing sponsored posts (i.e., native advertising) on blogs where target audiences spend time is another great way to put a marijuana brand in front of wider audiences (as long as those websites don’t market to children and allow the business to target its local area).
It’s also important to invest in search engine optimization (SEO) to build organic traffic to the business’s website. Furthermore, marijuana businesses should make sure their websites are well-designed and mobile-friendly. Most people view web content on a mobile device in 2017, so it’s essential that a marijuana business’s website presents a professional, trustworthy impression on desktop and mobile devices.
Local community service and sponsorships are also extremely effective for marijuana business marketing. In addition, businesses should position their leaders as experts in the marijuana field. By using public relations and media outreach to book interviews and speaking engagements, they can increase brand awareness and word-of-mouth marketing significantly. A key part of marijuana business marketing is building trust with consumers and changing the perception of the marijuana industry to make the products more mainstream. Public speaking, sponsorships, and community service can go a long way to make that happen.
The Future of Marijuana Marketing
Marijuana marketing challenges aren’t going to disappear any time in the near future. Rules will still vary from state-to-state, so marijuana businesses must educate themselves about the regulations that apply to them before investing time and money into any marketing campaigns. Unfortunately, operating with strict marketing regulations is a cost of doing business in a highly-regulated industry like marijuana.
Have you invested in marketing campaigns in the marijuana industry? What challenges did you face? Share your thoughts in the comments below.