Do You Have a Cannabis Marketing Plan? How Much Do Cannabis Companies Spend on Marketing?
A cannabis marketing plan is a crucial element to achieving your business’s goals. Marketing in the CBD industry is a little different when compared to other types of sectors. For example, suppose your company offers CBD cosmetics or oils. In that case, you often need to comply with more strict regulations regarding online advertising, as although CBD products became legal in many regions in the US in the span of the last few years ago, some platforms still prohibit promoting them openly.
Nowadays, using the internet is among the most effective ways of promoting anything. But apart from that, many larger cannabis companies also advertise their products more traditionally - in newspapers or TV. The market is growing exponentially, so it comes as no surprise that they want to have an advantage over their competitors.
You may think to yourself that this probably costs a lot of money for a cannabis marketing plan. And in fact, you are right. Six hundred sixty-one million dollars were spent on advertising cannabis in North America in 2018 only, and since then, the amount has been predicted to increase further. If you want to know how much do cannabis companies spend on marketing, check out this article!
What Are The Costs Of Online Marketing?
If you are running a small local cannabis store, you probably don’t think much about online marketing. But in fact, it’s one of the easiest ways to attract new customers, and what’s more, you can advertise your place for free - just put your store in Google My Business and set up a Facebook page to reach out to your potential customers.
However, if you want to expand your business, for example, by opening an online store, you may consider more comprehensive marketing strategies. And here the fun begins. One way to do that is by investing in ads. Many ad platforms offer very flexible advertising options, so it is up to you to choose whether you want to spend only a few dollars or over one hundred thousand.
Buying ads isn’t the only option available - you can also invest in link building. While it won’t bring as immediate results as buying ads, the idea behind it is to present your online store as more reputable when someone searches for any related topic on Google. And when it comes to cost, it greatly depends on the quality and complexity of the plan you choose. For example, if you go to https://huskyhamster.com/cbd/snap-pack, you can see that the prices might be higher when compared to regular ads, but most of those services guarantee noticeable results over longer periods, which can’t be said about ad services.
What About The Costs Of Advertising In Other Media?
Once your business develops more thoroughly, you may want to expand your advertising to other means, like newspapers, TV spots, or out-of-home options like billboards. There, things get more complicated, and each offer is different when it comes to the price and the service. So if you want to market your cannabis company this way, you’d better have a well-defined idea for your advertising campaign; otherwise, you may simply waste your money.
The cost of a full-page ad in a newspaper ranges from about two to over one hundred thousand dollars, depending on how big the newspaper is. Many cannabis businesses opt for the cheaper alternative, which is small modular ads. This way, they can advertise their products for a more extended period or split their advertising among multiple newspapers at once, which is essential when trying to target a broad audience. It is worth mentioning that the total money spent on newspaper marketing almost doubled the amount spent on online advertising in 2019.
Such methods of advertising can be beneficial for local cannabis companies. Apart from the aforementioned online services, many businesses also spend their money on local newspapers or billboards. Like advertising in various newspapers, this also allows them to reach as many potential customers as possible, especially those that don’t use the internet often. If done right, it can be cost-effective too - billboard prices start from below one thousand dollars a month.
Cannabis companies put a lot of effort into getting the word out about the products they offer, as the more people know about the store, the more potential customers they get. A cannabis marketing plan can give a small business the edge. Depending on the size and goal, businesses pick different means of marketing, including online ads, link building, but also newspaper and out-of-home advertising.
How much do cannabis companies spend on marketing? Cannabis is still not legal in the entirety of the US, yet the business in many regions is flourishing already. The cost of cannabis marketing is expected to surpass five billion dollars in the near future, so the only answer is - a lot! Advertising products is essential for any business, and the cannabis industry is no different.
So if you want to advertise your business, be prepared to spend a lot of money on it. Whichever marketing method you decide to go with, it is essential to prepare a budget and set a clear goal. Otherwise, you might spend too much money on an ineffective strategy. Maybe it would be a good idea to get in touch with a marketing agency too?