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When it comes to emerging markets, just selling cannabis might seem like it’s enough. However, this advantage is short-lived as more brands join the market. To stand out, it’s crucial to have a captivating narrative, a strong brand, memorable taglines and other distinguishing features, especially as competition increases.
By comparison, established markets demand that your brand has something more significant than just its price point. Otherwise, you might find yourself in a “race-to-the-bottom” price war or competing with a high-end brand that can outspend you. This is most evident in how so many cannabis brands market to and acquire customers.
Ensuring your cannabis brand has an effective marketing strategy behind it is more important than ever — especially given the ever-increasing saturation of local markets in each state. Without an effective marketing strategy, brands are unable to differentiate from one another and connect with their target market effectively. They find themselves stuck with the decision to either compete solely on price (aka a race to the bottom) or lose market share to more effective brands.
For those brands competing on price, performance advertising is often their go-to marketing strategy. Performance advertising focuses on driving conversions. This type of advertising is usually focused on generating leads, sales or other specific actions, and it is often measured by metrics such as cost per action (CPA), return on investment (ROI) and conversion rates.
Another misunderstood and seldom used marketing approach is contextual advertising or contextual targeting. Contextual advertising refers to a type of digital advertising that involves placing ads on websites, blogs and social media platforms that are related to the content of the page, making the ads “contextually relevant.” Just think of independent cannabis publications such as TheBluntness.com or Sensi Magazine that regularly cover various aspects of cannabis and the cannabis industry or articles in local or national media channels that also delve into relevant pro-cannabis topics.
While those commonly used marketing tactics have their own unique advantages, there are a number of reasons why contextual advertising may be the better option for cannabis brands.
To stand out, it’s essential to choose the right advertising strategy, and contextual advertising is a great option for cannabis brands. Contextual advertising delivers a cost-effective way to reach a targeted audience, increase brand awareness and drive sales.
The Benefits
Here are some of the key advantages of contextual advertising for cannabis brands to consider:
1. Reaches A Targeted Audience
Contextual advertising enables brands to reach a targeted audience by placing ads on websites, blogs and social media platforms that are related to the content of the page. This means that the people who see your ads are more likely to be interested in the product or service being advertised. For cannabis brands, this is especially important because it allows them to reach an audience that is already demonstrating interest in cannabis, increasing the chances of attracting new customers.
2. Increases Brand Awareness
Contextual advertising is also a great way to increase brand awareness among potential customers. By placing ads on websites, blogs and social media platforms that are related to the content of the page—e.g., an article about a particular strain or the medical benefits of cannabis—brands can reach a large audience, which can help increase brand recognition and recall. Furthermore, the use of eye-catching graphics and creative ad copy can also help capture the attention of potential customers and create a lasting impression.
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3. Cost-Effective
Contextual advertising is also a cost-effective advertising option compared to more traditional performance advertising methods. This is because contextual advertising allows brands to reach a targeted audience at a lower cost per impression. This is especially beneficial for small and medium-sized cannabis brands that may have limited budgets for advertising.
4. Measurable Results
Contextual advertising provides measurable results, which is critical for determining the success of an advertising campaign. Brands can track the number of impressions, clicks and conversions generated by their ads, which can help them adjust their advertising strategy as needed. Additionally, the use of analytics tools, such as Google Analytics, can help brands understand the effectiveness of their advertising campaigns and make data-driven decisions.
5. High Engagement Rates
Contextual advertising has high engagement rates, which means that users are more likely to interact with the ads. This is because the ads are aligned to the content of the page, which makes them exponentially more interesting and relevant. And, as noted above, the use of eye-catching graphics and creative ad copy can also help increase engagement rates and drive conversions.
Is It Right For You?
When considering whether contextual advertising is right for your cannabis business, there are a few key factors to consider:
1. Target audience. Contextual advertising is most effective when targeting specific audiences. If your cannabis brand has a well-defined target audience or buyer persona with clear interests and needs, contextual advertising is likely a good fit.
2. Ad content. The content of your ads should be relevant and engaging to users. If your ads are not well targeted or do not provide valuable information, users are unlikely to engage with them.
3. Marketing goals. Contextual advertising is best suited for businesses looking to increase brand awareness, generate leads and drive conversions. If your business has different marketing goals, other forms of advertising may be more effective.
In conclusion, contextual advertising is an often overlooked or misunderstood option for cannabis brands looking to reach a targeted audience, increase brand awareness and drive sales. However, it is cost-effective, delivers higher ROI compared to other forms of advertising, provides measurable results and has high engagement rates and therefore should be a more integral part of every cannabis marketing strategy.
By incorporating contextual advertising into their overall advertising strategy, cannabis brands can more effectively compete in an increasingly crowded market and reach their target audience in a meaningful way. Contextual advertising also supports independent cannabis publishers and media who have spearheaded the destigmatization and mainstreaming of cannabis for years and deserve to be a bigger part of the industry’s marketing mix in 2023.
