Programmatic advertising is a game-changer for brands and dispensaries looking to reach their target audiences with precision and efficiency. But what exactly is programmatic advertising, and how do you use it to drive growth for your cannabis business?
In this guide, we’ll dive into the essentials of cannabis programmatic advertising, exploring its benefits, best practices, top ad formats, and actionable strategies to help you get started.
Understanding Programmatic Advertising
Programmatic advertising is the automated buying and selling of online ad inventory in real time through an auction-based system.
For cannabis brands and dispensaries, programmatic advertising opens up a world of opportunities to connect with niche audiences at scale, even in a highly regulated industry with advertising restrictions. With programmatic ad tech, you can bypass traditional advertising roadblocks using data and algorithms to serve highly targeted ads to specific audiences across a vast network of websites, apps, and digital channels.
Benefits of Cannabis Programmatic Advertising
Programmatic advertising offers a multitude of benefits for cannabis brands and dispensaries looking to maximize their digital marketing efforts. From precise audience targeting to cost-efficiency and compliance, consider the advantages of incorporating programmatic into your advertising strategy.
Precise Audience Targeting
Programmatic advertising allows you to target your ideal customers with unparalleled precision. Leverage granular targeting options based on demographics, interests, behaviors, location, and even cannabis-specific data points like dispensary visits or app usage. This means you’re focusing your ad spend on reaching the most relevant and high-value audiences.
Cost-Efficiency and Real-Time Optimization
You can set your budget and bid for ad space in real-time auctions so that you get the most value for your advertising dollars. Advanced algorithms continuously optimize your campaigns based on performance data, allowing you to allocate resources to the best-performing ad placements, creatives, and audience segments.
Compliance and Brand Safety
Leading cannabis programmatic platforms have built-in safeguards to help you make sure your ads comply with state and local regulations. They also offer brand safety tools to protect your reputation and avoid associating your brand with unsuitable content, giving you peace of mind as you scale your advertising efforts.
Omnichannel Reach and Engagement
Programmatic advertising lets you engage your target audience seamlessly across devices and channels, from desktop and mobile to connected TV, digital out-of-home, and more. This omnichannel approach allows you to tell a cohesive brand story and drive meaningful interactions at every touchpoint.
Top Programmatic Ad Formats for Cannabis
To make the most of your cannabis programmatic advertising efforts, understand the various ad formats available and how you can use them to achieve your marketing goals.
Display Ads
Display ads are the foundation of programmatic advertising, accounting for the majority of programmatic ad spend. Run eye-catching banner ads across a network of mainstream and cannabis-focused websites, using A/B testing to optimize ad sizes for maximum impact.
Mobile Ads
With the average person spending hours on their mobile device daily, mobile ads are a must for cannabis brands. Target users based on mobile app usage, such as cannabis delivery or dispensary finder apps. You can also use geofencing to reach potential customers near relevant locations like dispensaries, events, or competitors.
Native Ads
Native ads blend seamlessly into the surrounding content, offering a less intrusive and more engaging experience for users. Craft compelling ad copy and visuals that align with your brand and resonate with your target audience, driving higher click-through rates and conversions.
Digital Audio Ads
Audio ads, delivered through streaming platforms and podcasts, provide an immersive and captivating way to reach cannabis consumers. With high listener engagement and a 100% share of voice during your ad spot, audio ads can be particularly effective for building brand awareness and affinity.
Connected TV
As more consumers shift toward streaming their favorite shows and movies on CTV platforms, cannabis brands have an opportunity to reach their target audience in a highly engaging environment. CTV offers precise targeting, measurable performance, and immersive storytelling capabilities that drive brand recognition and action.
Actionable Strategies for Cannabis Programmatic Advertising
- Define your target audience and goals: Start by developing detailed buyer personas based on your ideal customer profiles. Clearly define your advertising goals, whether it’s driving online sales, increasing dispensary visits, or building brand awareness. This will guide your targeting, ad creative, and overall strategy.
- Choose the right programmatic platform: For CBD and hemp brands, mainstream programmatic platforms offer access to a wide range of ad inventory. For plant-touching cannabis businesses, opt for cannabis-specific programmatic platforms that guarantee compliance and reach relevant audiences.
- Develop engaging ad creative: Create compelling ad creative that aligns with your brand identity and resonates with your target audience. Experiment with different ad formats, messaging, and visuals to find what works best. Always include clear calls-to-action (CTAs) to drive desired actions.
- Optimize landing pages for conversions: Make sure your ad click-throughs lead to relevant, user-friendly landing pages optimized for conversions. Streamline the user experience and make it easy for visitors to take the desired action, whether it’s making a purchase, signing up for a newsletter, or finding a nearby dispensary.
- Continuously monitor and optimize performance: Track key performance indicators (KPIs) like impressions, clicks, conversions, and return on ad spend (ROAS). Use this data to identify top-performing ad placements, creatives, and audience segments. Continuously test and refine your campaigns to improve results and maximize your advertising ROI.
Ready To Take Your Cannabis Marketing to the Next Level?
At HIGHOPES, our team of experienced digital marketing experts will work closely with you to develop a customized strategy that aligns with your unique goals and target audience. From content development to campaign optimization and performance tracking, we’ll be with you every step of the way as you grow your business. Contact us today to learn more about how we can elevate your cannabis marketing efforts and drive measurable results for your business.
