Performance Marketing Association’s Role in Cannabis Marketing

The Performance Marketing Association (PMA) plays a crucial role in guiding cannabis companies through the complexities of marketing in a heavily regulated industry. Here’s what you need to know:

PMA’s Role: Offers tools, connections, and support to navigate advertising restrictions, data limitations, and public stigma.
Unique Challenges: Addresses advertising constraints, lack of customer data, and societal perceptions.
Strategies for Success: Uses SEO, email marketing, and multi-channel coordination to boost brand awareness and sales.
Consumer Insights: Identifies key customer types – enthusiasts, wellness seekers, and canna-curious – tailoring strategies to each.
Compliance Guidance: Provides up-to-date information on navigating complex regulations, helping companies stay within legal boundaries.

PMA’s efforts in education, advocacy, and providing practical solutions underscore its pivotal role in fostering growth and compliance within the cannabis marketing sector.

Driving Performance with Consumer Insights

Defining the Audience

Using data from over 300 cannabis brands and 5 million customers, the PMA member agency grouped consumers based on what they like, their values, and how they behave. They found three main types of customers:

Enthusiasts – This group loves cannabis and makes up about 60% to 70% of all sales. They’re always ready to try new things.
Wellness seekers – These folks use cannabis mainly for health reasons, like easing pain or helping with sleep. They prefer high-quality, natural products.
Canna-curious – These are newer, lighter users curious about cannabis. They’re looking for information and guidance from brands they can trust.

Knowing these different customer types helped the agency create better ads and messages.

Native Ads Outperform Programmatic

The agency tried out native ads, which are ads that fit naturally on websites like Weedmaps and Jane, targeting people who are still learning about cannabis. These ads worked 40% better than regular online ads at getting people to sign up for emails. Because these ads didn’t interrupt the users and were relevant to what they were looking for, people were more interested.

Community Building Boosts Retention

The agency focused on the enthusiasts and started a special club offering unique rewards and experiences. Six months later, these club members were sticking around 46% more and spending more money than other customers. Creating a community made customers feel more connected to the brand.

Omnichannel Optimization Connects Consumer Journey

The agency used a mix of email, text messages, social media influencers, and ads to reach customers at every step of their buying journey. This strategy helped raise awareness, get people thinking about buying, and remind those who had visited the website before to make a purchase. By tracking everything, they could see how well each part worked in moving customers towards buying something.

Compliance Considerations

The world of cannabis marketing is filled with tight rules. Since the US federal government still says no to cannabis, companies have to be extra careful about how and where they advertise. The PMA steps up to guide these companies on how to spread the word safely and within the law.

Navigating Complex Regulations

Every place has its own set of do’s and don’ts for cannabis ads. Some places are okay with certain ads, while others say a big no. Also, what’s okay on one website might not fly on another. For example, Google and Facebook won’t let you place cannabis ads, but specialized sites like Weedmaps and Leafly might, under certain conditions.

This maze of rules can be a headache. Without someone to guide them, companies might accidentally step over the line and face fines or worse.

PMA knows these rules inside out. They keep an eye on what’s allowed where and share this info with their members. They give tips on:

Which places and ways are safe to advertise
How to make sure ads are only seen by adults
What you can and can’t say about your products
How to target ads so they don’t end up in places where they shouldn’t

Listening to PMA’s advice helps companies avoid legal troubles while getting their name out there.

Advocacy for Regulatory Reform

PMA doesn’t just help companies follow the rules; they’re also trying to change them. They argue that being too strict can backfire. If companies can’t market properly, it’s harder for them to fight off illegal sellers, teach people about their products, or become a normal part of society.

These tough rules can especially hurt small companies. Big companies might manage, but the little guys can get lost in all the red tape.

PMA works with groups like NCIA to ask lawmakers and platforms to think about rules that make more sense. They’ve already made some progress, like getting Reddit to open up more to cannabis ads and Weedmaps to say yes to video ads.

They also make sure their members have a say in how the future rules might look.

Compliance as Competitive Edge

With all the different and changing rules in North America, just staying within the law is a big deal for cannabis companies.

PMA’s expert advice on these rules gives their members a leg up. Following their guidance means companies can run their ads without worrying about getting into trouble.

With PMA’s help, companies can spend more time on growing their business instead of trying to figure out complex laws. This not only saves money that would otherwise go to lawyers but also means that when the rules do get easier, PMA’s members will already be ahead of the game. For now, playing it safe and smart is the way to win.

Educating the Industry

The cannabis industry is growing fast, but it’s also really complicated because of all the different rules in each state and country. The PMA knows that teaching cannabis companies how to deal with these challenges is super important. They offer a bunch of educational stuff to help marketers stay on top of things.

Webinars From Leading Experts

PMA puts together online talks with big names in cannabis marketing, law, finance, and more. For instance, they recently had a talk about what’s coming up in the industry and how to make your brand stand out using great content.

These talks help members:

Catch up on new trends and what might happen next
Get how changes in the law could affect them
Learn specific ways to grow their brand even with all the restrictions
Meet experts in different areas

Joining these talks means you can use the latest ideas in your marketing plans.

Annual Cannabis Marketing Summit

Every year, PMA holds a day-long event where marketers can learn new stuff and meet other people in the industry.

You can expect:

Talks from marketing stars
Discussions on important topics
Meeting over 500 people who work in cannabis
Finding out about the latest research

If you go, you’ll come back with new ideas and contacts to help with your marketing.

Between events, PMA sends out a newsletter every month with:

The best brand stories and examples
Interviews with marketing bosses
The newest info on what customers want
News on any rule changes
Quick looks at new marketing tricks

The newsletter makes it easy to keep up with everything important without having to search for it.

With all these educational opportunities, PMA makes sure cannabis marketers know how to handle both the creative and the technical sides of their jobs. This helps members make their brands really take off.

Driving Results

The Performance Marketing Association helps cannabis companies grow despite the tough marketing rules. They mix data, strategies, and advocacy to help brands reach customers and make more sales.

Here are some real stories of PMA members who beat the odds and saw great results.

30% Increase in Monthly Site Traffic

A company making cannabinoid products had a hard time getting people to their website because they couldn’t advertise much. By improving their website’s search rankings with good content and links, they got 30% more visitors every month for half a year.

$200k in Added Revenue

An edibles brand used to sell mostly in stores. With PMA’s help on using data better across different channels, they started sending targeted emails and texts when people were likely to visit stores. This approach made them an extra $200k that year.

46% Higher Customer Retention

A new vape brand struggled to keep customers interested after their first buy. PMA introduced them to an agency that set up a rewards program offering special treats for members. This move made customers 46% more likely to come back and buy within three months.

$1 Million in New Investments

A CBD skincare company looking to grow had a tough time finding investors because of changing rules. PMA helped them connect with a law firm that knows cannabis marketing rules, building more trust with investors. This led to $1 million in new funding for better production.

25% Increase in Online Conversions

A company selling CBD for pets had trouble turning website visitors from their educational blogs into buyers. With PMA’s advice on making their website easier to use, they improved how they ask visitors to sign up or buy, increasing their online sales by 25% in four months.

PMA helps cannabis marketers turn their ideas into success, even with strict rules. These stories show how PMA’s advice, data, and connections help brands reach and please customers. Despite the challenges, PMA builds understanding, trust, and success.

Conclusion

The Performance Marketing Association (PMA) is really important for helping cannabis brands figure out how to reach their customers and get better at marketing and learning, even though there are a lot of tough rules to follow.

Overcoming Unique Hurdles

The PMA gives cannabis marketers a hand with issues like advertising limits, not having enough data, and dealing with bad opinions. They do this by sharing knowledge on rules, tweaking marketing methods, giving access to data, and helping improve how people see cannabis.
This support helps brands find investors, sell their stuff, hire the right people, and run marketing efforts to get noticed and sell more.

Consumer-Focused Growth

By understanding different types of customers like enthusiasts, wellness seekers, and those new to cannabis, PMA members can make messages and experiences that really speak to these groups.
Using smart ads, building a community, and reaching out through many channels helps connect with customers in many ways.

Advancing the Industry

The PMA works on getting better rules for cannabis marketing so it can do its job well while keeping customers safe.
They also have programs like online talks, events, and newsletters to help members get really good at marketing and dealing with rules.

Proven Performance Improvements

Stories from PMA members show big wins like 30% more people visiting websites, making an extra $200k, keeping customers 46% more, getting $1 million in new money, and selling 25% more online.

Even with all the challenges, the PMA helps cannabis marketers understand, build trust, and get good results through new ideas, learning, and speaking up for change. They’re working on making a marketing world where cannabis brands can do well.

Who usually buys cannabis products?

The main groups of people who buy cannabis are:

44% are millennials (ages 24-39)
23% are Generation X (ages 40-55)
20% are Generation Z (ages 18-23)
13% are baby boomers (ages 56-74)

So, most buyers are millennials, with Gen X and Gen Z also showing strong interest. Companies try to reach these groups with online ads, working with popular online personalities, and by showing they share the same values.

Why do cannabis companies focus on their brand?

Having a strong brand helps cannabis companies to:

Stand out in a market full of similar products
Charge more for their products and keep customers coming back
Keep ahead of competitors
Show they’re all about quality and safety

With not many ways to advertise, it’s important for companies to make sure everything from their messages to their packaging shows who they are.

How can I get more people to come to my dispensary?

Here are some good ways to market your dispensary:

Programs that reward customers for coming back
Sending deals and updates through text
Programs that reward customers for bringing friends
Using social media as much as possible
Showing ads to people who visited your website before
Using online ads that fit right into content

It’s a good idea to use channels you control, work with influencers, build a community, and focus on targeting your ads well. Be creative with ways to keep in touch with your customers that follow the rules.

Can you put cannabis ads in Canada?

In Canada, you can’t do the following in cannabis ads:

Make it seem appealing to young people
Talk about prices or where to buy
Use people’s stories or endorsements
Show people, characters, or animals
Link it to a glamorous or fun lifestyle

Ads should be aimed at adults, talk about the facts, and encourage using it responsibly. Always check the rules before advertising because each area in Canada has its own rules too.