Cannabis Targeted Advertising Guide 2024

Here’s a quick overview of cannabis advertising in 2024:

Federal laws prohibit cannabis ads, but state rules vary
Targeted ads help reach the right audience and stand out
Key targeting methods:
- Age, gender, income
- Lifestyle and values
- Buying habits
- Location-based
Ad creation must follow strict compliance rules
Measure ad performance with metrics like CPA, CTR, and ROAS
Emerging trends: AI-powered ads, voice search, streaming TV

Quick Comparison of Cannabis Ad Platforms:

Platform	Specialization	Ad Types
Mantis	Cannabis & CBD	Display
Traffic Roots	Cannabis	Display, Video
MediaJel	Cannabis	Software, Various

Remember: Always check local laws, target responsibly, and prioritize ethical advertising practices.

Cannabis Ad Rules and Laws

Federal Guidelines

The U.S. government has strict rules for cannabis ads:

It’s illegal to advertise selling cannabis under federal law
Breaking this law can lead to up to 4 years in jail
Using the internet to advertise cannabis sales is not allowed

State-by-State Rules

Each state has its own cannabis ad rules:

State	Ad Rules
Minnesota	Only 2 outdoor signs allowed on business property
Mississippi	No ads in any media

Cannabis businesses must know and follow their state’s specific rules.

Key Compliance Points

To follow cannabis ad laws, businesses must:

Not make false claims about health benefits
Avoid ads that appeal to kids
Not show people using cannabis
Avoid slang terms for cannabis
Check ages properly
Follow local rules for signs and marketing

Grouping Cannabis Ad Audiences

Age, Gender, and Income Targeting

Cannabis businesses can aim their ads at specific groups based on:

Age
Gender
Income

This helps them reach the right customers. For example:

Age Group	Potential Interest
65+	Symptom relief
18-34	Recreational use

Women are buying more cannabis products, often for wellness reasons. Targeting different income levels can help sell high-end or basic products.

Lifestyle and Values Profiles

People who use cannabis have different lifestyles and values. Here are some examples:

Profile	Interest
Health-conscious	CBD products
Creatives	Focus-enhancing products
Parents	Alternatives to regular medicine

Knowing these profiles helps make ads that speak to each group.

Targeting Based on Buying Habits

Cannabis businesses can also target customers based on how they buy. For instance:

Buyer Type	Possible Offer
Frequent buyers	Loyalty programs
Occasional buyers	Discounts

Businesses can also target people who have bought specific types of products before, like edibles or concentrates. This helps create ads that encourage people to buy again.

Targeting Without Cookies

Using Your Own Customer Data

In 2024, cannabis brands need to use their own customer data for ads. This means:

Collecting email addresses, phone numbers, and purchase history
Using this data to make personalized ads

For example, a brand can make ads based on what a customer bought before. This helps:

Improve customer experience
Make ads work better

New Ways to Find Users

Without cookies, cannabis brands need other ways to find their audience:

Contextual targeting: Putting ads on websites that fit the brand’s audience
Other data tracking: Using new ways to track users without cookies

Targeting Method	How It Works
Contextual	Place ads on health websites
Alternative tracking	Use new ID solutions or work with platforms that have user data

Targeting Whole Households

Cannabis brands can target entire households instead of just one person. This means:

Using data from many sources
Creating a full picture of what a household likes

Benefits of Household Targeting
Better ad results
Improved customer experience
Personalized offers for the whole family

Automated Ad Buying for Cannabis

Why Use Automated Ad Buying

Automated ad buying, or programmatic advertising, helps cannabis brands reach their target audience better. It makes ad buying faster and cheaper. With this method, cannabis companies can:

Show ads to specific groups based on age, gender, income, and interests
Reach more people
Spend money on ads more wisely

Top Platforms for Cannabis Ads

Here are some popular platforms for cannabis ads that use automated buying:

Platform	What It Does
Mantis	Runs ads for cannabis and CBD brands
Traffic Roots	Shows display and video ads for cannabis brands
MediaJel	Offers software for cannabis advertising

Tips for Success

To do well with automated ad buying for cannabis:

Know who you want to reach
Set clear goals for your ads
Pick a platform that knows how to work with cannabis brands
Keep an eye on how your ads are doing and make changes as needed

Location-Based Cannabis Ads

Location-based cannabis ads help businesses reach people near their stores. These ads use a person’s location to show them relevant offers.

Using Location to Target Ads

Location-based ads work by:

Using GPS, Wi-Fi, or cell data to find where a person is
Showing ads to people close to your store

For example, you could make an ad that shows up for people within 1 mile of your store. This ad might offer a discount to get people to visit.

Following Location Ad Rules

Each state and ad platform has its own rules for location-based ads. Some key points:

Some states don’t allow ads targeting people under 21
There may be rules about ads near schools

Always check your state’s rules before making location-based ads.

Setting Up Location Fences

A location fence is an area where your ads will show up. Here are ways to set them up:

Method	How It Works
Geofencing	Draw a line around an area using GPS
Geotargeting	Use IP addresses or device IDs to find users
Beacons	Use small Bluetooth devices to spot nearby users

These methods help you show ads to people who are most likely to visit your store.

Creating Cannabis Ad Content

Making Ads That Follow Rules

When making cannabis ads, you must follow federal and state rules. This means:

Not appealing to people under 21
Not using false or misleading information
Targeting only adults 21 and older

Your ads should have:

Ad Element	Details
Image	High-quality
Logo	Your company’s logo
Headline	20-35 characters
Body text	50-75 characters
CTA button	Clear action for users
Landing page link	Where users go after clicking

Make sure your ad design follows your state’s rules. This might mean using specific words or pictures.

Writing Good Ad Messages

To write ads that work well:

Keep them short and clear
Talk about how your product helps people
Use eye-catching headlines and CTAs
Use the same message in all your ads

Your ad should speak to the people you want to reach and make them want to act.

Trying Different Ad Versions

It’s important to try different versions of your ads. This means making several ads with different:

Pictures
Headlines
CTAs

By trying different ads, you can:

Benefit	Explanation
Find the best ad	See which one works best
Save money	Spend less on ads that don’t work
Get more results	More people might click or buy

This helps you make your ads better over time.

Checking How Well Cannabis Ads Work

Key Numbers to Track

To see if your cannabis ads are doing well, keep an eye on these numbers:

Metric	What It Means
Cost per acquisition (CPA)	How much you spend to get one customer
Cost per click (CPC)	How much you pay for each ad click
Conversions	How many people buy or sign up
Return on ad spend (ROAS)	How much money you make compared to what you spend on ads
Total revenue	How much money you make overall
Ad performance	Which ads work best (using A/B testing)
Click-through rate (CTR)	How many people click your ad
Keyword performance	Which search words work best
Geographic performance	Where your ads work best
Impressions	How many times people see your ad
Site traffic	How many people visit your website
Time on site	How long people stay on your website
Page views	How many pages people look at
Bounce rate	How many people leave your site quickly
Overall engagement	How people interact with your ads and website

By looking at these numbers, you can see what’s working and make your ads better.

Fixing Ad Credit Problems

If you have issues with ad credits, like wrong billing or spending, try these steps:

1. Check your ad platform’s reports to find the problem

2. Contact the platform’s help team

3. Give them details about the issue, like screenshots and transaction numbers

Tools to Measure Ad Results

Here are some tools to help you check how well your cannabis ads are doing:

Tool	What It Does
Google Analytics	Shows you how people use your website
Ad platform reports	Built-in tools from places like Facebook Ads or Google Ads
Other analytics tools	Extra tools like Mixpanel or Kissmetrics for more info
A/B testing tools	Tools like Optimizely or VWO to test different ads

These tools can help you understand how your ads are working and make them better.

New Cannabis Ad Methods

Using AI for Better Ads

AI is helping cannabis brands make their ads work better. Here’s how:

AI Benefit	Description
Better targeting	AI looks at what people like and buy to show ads to the right people
Improved ad content	AI can change pictures and words in ads to make them more appealing
More sales	By using AI, brands can get more people to buy their products

Ads on Voice Search and Smart Speakers

People are using voice search more often. This means new ways for cannabis brands to advertise:

Ads can work with devices like Alexa and Google Home
People can talk to brands through these ads
It’s a more personal way to reach customers

Ads on Streaming TV

Streaming TV is another new place for cannabis ads:

Streaming Service	Why It’s Good for Ads
Netflix	Lots of people watch it
Hulu	Can show ads to specific groups
Disney+	Reaches families and adults

By using streaming TV ads, cannabis brands can:

Show their ads to more people
Make their ads more interesting to watch
Stand out from other brands

These new ad methods help cannabis brands reach more customers in different ways.

Doing the Right Thing in Cannabis Ads

Rules for Fair Cannabis Ads

When making cannabis ads, it’s important to follow these rules:

Rule	Explanation
Don’t target young people	Ads should not appeal to anyone under 21
Be honest	Don’t make false claims about cannabis products
Promote safe use	Encourage responsible consumption
Follow local laws	Obey rules about signs and marketing

Breaking these rules can lead to big fines or even legal trouble.

Including Everyone in Cannabis Ads

Cannabis ads should:

Show respect for all people
Avoid using stereotypes
Not use images that might appeal to kids
Focus on the good points of cannabis products in a careful way

Selling Safely and Responsibly

Cannabis businesses need to sell their products safely. This means:

Responsibility	Action
Proper labeling	Make sure products have clear labels
Correct packaging	Use packaging that follows the rules
Customer education	Tell customers about the risks and benefits
Promote safe use	Encourage customers to use cannabis carefully
Offer help	Provide information for people who need support

What’s Next for Cannabis Ads

The cannabis ad world is always changing. Here’s what we might see soon:

Changes We Expect to See

More AI Use: AI will help make ads more personal and find the right people to show them to.
Voice Ads: More ads will work with things like Alexa and Google Home.
Fun Events: Cannabis brands might host parties or sponsor festivals to connect with customers.

Possible New Rules

As cannabis gets more popular, we might see:

New Rule	What It Means
Stricter Age Checks	Making sure ads don’t reach kids
Product Limits	Rules about what can be advertised
Ad Content Rules	How products can be shown or talked about

Getting Ready for Future Changes

Cannabis brands can prepare by:

Staying Informed: Keep up with new rules and trends.
Using New Tech: Try AI tools to make better ads.
Building Customer Relationships: Create good experiences for customers to build trust.

FAQs

What are the federal cannabis advertising regulations?

Federal rules for cannabis ads are strict. Here’s what businesses need to know:

Rule	Explanation
Truth in Advertising	Ads must be honest and not mislead people
No health claims	Can’t say cannabis cures or treats serious illnesses
Research-backed	Any product claims must have real research to back them up

The Federal Trade Commission (FTC) watches over these rules. Breaking them can get a business in big trouble.

Key points for cannabis businesses:

Don’t lie or exaggerate in ads
Don’t promise health benefits without proof
Make sure all product info is correct