Advertising Challenges for Cannabis Brands
For U.S. cannabis brands, many restrictions exist on how and where a brand can advertise. Due to these limitations, options are scarce, and programmatic advertising can seem like a valuable solution.
Introduction to Programmatic Advertising
Programmatic advertising uses automated software to buy media space for placing digital ads on websites, streaming services, and other digital platforms. This method allows a cannabis brand to purchase ad space on relevant platforms and reach the right audience.
Its flexibility and accessibility make programmatic ads a fitting addition to any marketing plan. However, understanding how to leverage this tool effectively is crucial, especially for brands focused on Return on Ad Spend (RoAS).
What Is Programmatic Advertising?
Programmatic advertising is an automated system of buying ad space in real-time. Ads are placed on web pages or other digital platforms almost instantly after the space is purchased. The process uses algorithms based on specific targeting criteria set for the campaign.
This method ensures that ads reach the intended audience without requiring constant manual adjustments. As programmatic advertising grows more efficient, smaller cannabis brands will find more marketing opportunities opening up.
Leveraging Programmatic Digital Advertising
A Cost-Effective Solution
Programmatic advertising can be a cost-effective option for cannabis companies. Marketing agencies typically handle the media buys, so companies do not need large in-house teams. By setting budget, targeting, goals, and audience parameters, the agency manages the rest.
This approach benefits both established enterprises and smaller startups by providing a top-funnel traffic source with minimal effort required from the business.
Avoiding Ad Restrictions
An additional benefit is avoiding strict advertising restrictions on platforms like Google, Facebook, and Instagram. While there are ways to advertise cannabis products on these platforms, programmatic advertising provides a direct route to consumers without dealing with restrictive policies.
The process enables ads to be shown to specific users in various locations, such as Colorado or Michigan, through websites or digital signage. This makes programmatic advertising a valuable opportunity for cannabis brands looking to expand their reach.
