Cannabis Programmatic Advertising Made Simple

In 2021, the cannabis industry exceeded legal sales by $25 billion in the United States alone. This figure is set to rise rapidly over the next few years. But for cannabis brands, gaining visibility in the digital world presents a host of unique obstacles. Persistent regulatory restrictions, platform bans, and prohibition on cannabis stigmatize almost every traditional form of digital advertising. Thus, cannabis programmatic advertising comes into its own.

With this groundbreaking new approach, cannabis businesses are able to target the digital audience in ways never before possible. If you are a dispensary owner, a cannabis marketer, or a professional interested in exploring this rapidly developing niche, this guide will teach you what cannabis programmatic advertising is, why it is important, and how to put it into practice.

What is Cannabis Programmatic Advertising?

Programmatic advertising is an automated method of buying and selling digital ad space. Using artificial intelligence and real-time bidding (RTB), programmatic advertising targets specific audiences based on data such as demographics, interests, and behavior. It’s like quicker underscores a wise man or woman, if you will, for placing ads than traditional techniques.

Cannabis programmatic advertising is to application of this advanced technology to the cannabis sector. Unlike traditional online advertising through platforms like Google Ads or Facebook Ads, which severely restrict or completely prohibit cannabis promotions, programmatic advertising lets your brand break out of these limitations and send marketing messages to targeted audiences with compliant websites/apps.

Why Cannabis Programmatic Advertising Matters

The cannabis industry faces an uphill advertising battle due to stringent regulations and stigma. Here’s why programmatic advertising is a game-changer:

1. Overcoming Advertising Restrictions

Major digital platforms like Google, Facebook, and Instagram have strict policies against cannabis advertisements. This makes it challenging for brands to reach potential customers through traditional pay-per-click advertising. Programmatic advertising provides a workaround by targeting compliant publishers and allowing your ads to appear on vetted websites and apps.

2. Precise Targeting

Cannabis programmatic advertising thrives on precision. By leveraging data, you can ensure your ads are seen by the right audience. For example:

Demographic Targeting: Reach audiences based on age, gender, and location.
Behavioral Targeting: Adapt your campaigns to target users based on their interests, such as those who frequently research wellness or alternative medicine.
Geotargeting: Focus on consumers near dispensaries or in regions where cannabis is legal.

3. Real-Time Optimization

One of the major advantages of programmatic advertising is the ability to adjust campaigns in real time. You can analyze how your ad is performing on a particular publisher or zone and shift budgets to maximize ROI, making every dollar count.

4. Increased Efficiency

Manually negotiating ad buys can be time-consuming. With programmatic advertising, the process is fully automated, saving valuable time and resources for cannabis businesses.

How Cannabis Programmatic Advertising Works

At its core, cannabis programmatic advertising relies on a tech-driven ecosystem. Here’s how the process typically unfolds:

Step 1: Demand-Side Platform (DSP)

A cannabis business partners with a demand-side platform (DSP) to access ad space available across a network of compliant websites and apps. DSPs like StackAdapt, PrograMetrix, and Traffic Roots specialize in facilitating cannabis advertising.

Step 2: Data Acquisition

Using AI algorithms, the DSP collects and analyzes data to identify the ideal audience for the campaign. This data can include browsing history, location, device type, and more.

Step 3: Real-Time Bidding (RTB)

Once the right audience is identified, the DSP participates in real-time auctions to bid for digital ad inventory. If the bid is successful, the cannabis ad is displayed to a highly targeted audience.

Step 4: Analysis and Optimization

Throughout the campaign, the DSP gathers performance data and optimizes the campaign in real time, ensuring maximum efficiency and better ROI.

Best Practices for Cannabis Programmatic Advertising

If you’re ready to incorporate programmatic advertising into your cannabis marketing strategy, here are some actionable tips to help you get started:

Understand Advertising Regulations

Navigating the complex web of cannabis advertising laws is crucial to avoid penalties. Laws vary from state to state, so ensure your campaigns comply with all local and federal regulations. For example, ads should only target consumers in regions where cannabis is legal and must avoid making unverified claims about health benefits.

Use Compliant Platforms

Partner with DSPs that are experienced in cannabis advertising and operate within the legal guidelines. Platforms like PrograMetrix and Traffic Roots specialize in placing compliant cannabis ads, ensuring that your campaigns adhere to the law while still reaching your target audience.

Focus on Quality Content

Your ads should do more than promote your product; they should educate and inspire your audience. High-quality copy, professional visuals, and clear calls-to-action can make your ads stand out in a crowded marketplace.

Leverage Audience Segmentation

Take advantage of the targeting capabilities that programmatic offers. For example:

Use geotargeting to promote in-store discounts for users near your location.
Segment audiences by product preferences, such as edibles, concentrates, or CBD products.

Track and Measure Performance

Use analytics tools to measure your campaign’s success. Monitor key metrics such as click-through rates (CTR), conversions, and cost-per-acquisition (CPA). This data allows you to tweak and refine your campaigns for even better results.

Educate Your Audience

The cannabis industry is still plagued with misconceptions. Use your ads as an opportunity to educate the public on the benefits of cannabis, its safety, and its legalities. This not only builds trust but also helps normalize cannabis use.

Success Stories in Cannabis Programmatic Advertising

Several cannabis companies have achieved remarkable success with programmatic advertising. Here are a few inspiring examples:

Brand 1 boosted dispensary sales by 25 percent by using programmatic geotargeting to promote exclusive in-store offers.
Brand 2, a CBD company, achieved a 3x return on ad spend (ROAS) through personalized, audience-targeted ad copy tailored to wellness enthusiasts.
Brand 3 gained 15,000 brand-new website visitors in one month by running ads across a network of compliant publishers.

While these success stories demonstrate the power of cannabis programmatic advertising, they also show how critical it is to tailor campaigns according to specific business goals and audiences.

How to Get Started with Cannabis Programmatic Advertising

Excited to kick off your first campaign? Here’s how to get started:

Partner with a cannabis-compliant DSP like PrograMetrix or Traffic Roots.
Define your target audience and campaign goals.
Create captivating ad creatives, complete with high-quality visuals and compelling calls-to-action.
Launch your campaign and continuously analyze performance.
Refine your strategy based on data insights.

Stay Ahead with Programmatic Advertising

The cannabis trade is changing fast. For this reason, keeping up with the latest developments means accepting programmatic advertising for example, as a technical solution. By using AI and data, not only can you overcome advertising restrictions but also make genuine connections with your audience. Programmatic advertising offers the tools for getting where you need to go, whether that means driving foot traffic to your dispensary and increasing sales on the internet or ensuring that people are aware of your brand.

Are you ready to harness the power of programmatic advertising for your cannabis business? Take the first step today and explore this revolutionary marketing approach.