• by Sean McConnell , January 27, 2021

On Nov. 3, 2020, four states -- Arizona, Montana, New Jersey and South Dakota -- passed measures allowing adults to use marijuana medicinally and/or recreationally. So far, 11 states have fully legalized marijuana use and 34 allow medicinal use, meaning about one-third of U.S. citizens live in places where marijuana is legal for adults over 21.

I’ve executed ad campaigns for a number of large cannabis distributors in Canada, where it was legalized nationally in 2018. We’ve had it “easy” compared to marketers in the U.S. -- who must navigate state regulations, a dearth of advertising platforms, and measurement issues typical of any relatively new industry.

Still, there are plenty of lessons learned in Canada that can be applied in the U.S. Here are three considerations for U.S. cannabis as the market matures.

Build your measurement infrastructure. All too frequently, startups go all in on marketing, with digital and traditional media placements, concert sponsorships and the like, but they still can’t analyze how those efforts impact sales.

That’s why it’s important to build a system that shows where your money is working -- and with which audiences. First, ensure you have connectivity between your sales and marketing. Then, appropriately tag your website for online digital measurement. You should be tracking both online and offline activity through footfall measurement, and your POS should be connected to your media activity.

Choose media partnerships wisely. There are two main ways to get brands in front of the public: cannabis-centric platforms, and consumer lifestyle and news outlets. Leafly, a cannabis platform, lists products and publishes sponsored content and contributed articles that can lift brand visibility.

Other publishers like Grassroots and WeedMaps provide ripe advertising opportunities. These platforms generate  age-gated and intent-based data that marketers can leverage in choosing media for their next route: consumer lifestyle and news publications

Cannabis and CBD ads can be found in outlets like ESPN, Huffington Post, Newsweek, Politico and USA Today. Understand your target audience’s habits inside and out, and match them with the right publishers.

Exercise an abundance of caution. The cannabis industry is full of companies trying to do (and spend) too much too soon. This “frontier mentality” has resulted in stiff fines for violating regulations. One Canadian company bought tent space at a music festival open to patrons of all ages, unaware that fans had to be 19+ to get into the tent. That cost the company millions in fines.

While it’s easy to get excited about being in one of the fastest growing markets, brands should take a measured approach.

U.S. cannabis industry moving forward

The Biden/Harris administration tees up the possibility of national legalization in the future. This will lead to greater industry stabilization, more uniform regulations and ultimately more marketing platforms. As the industry begins to take these calculated baby steps, it’s imperative that cannabis marketers work with experienced agencies and partners that can help navigate the state-by-state nuances of acceptable practices

For now, it’s up to marketers to make the most of the states where cannabis is legal.