Programmatic advertising provides new capabilities for cannabis brands seeking to engage their core endemic audiences digitally. While search and social options remain limited, programmatic allows precise targeting beyond basic demographics. Automated buying and optimization also enable efficient spending and optimization at scale. For cannabis, programmatic offers advanced targeting to reach valuable but elusive consumer segments.
The Value of Cannabis' Endemic Audience Segments
Cannabis has a passionate, loyal endemic audience. These consumers actively participate in cannabis culture, keep up on trends, and purchase new products. Their behaviors and psychographics differentiate them from casual cannabis users. Endemic users drive significant value:
25% of cannabis consumers use it daily, generating predictable repeat purchases
Weekly users spend on average 2.5x more than infrequent users
Early adopters willing to pay premium prices for new innovative products
Vocal on social media and active in online cannabis communities
Lifetime value is up to 4X higher than non-endemic consumers
However, endemic users are difficult to target through conventional digital methods:
Platform restrictions prevent targeting interests like “cannabis enthusiast”
Limited demographic and basic interest data to identify high-value users
Anonymous profiles on platforms hide cannabis purchase intent signals
As the legal market expands, identifying and engaging endemic cannabis audience segments will only become more crucial for brands. Programmatic advertising provides powerful tools to reach this valuable yet elusive audience.
Why Programmatic Advertising is the Next Frontier for Cannabis
Programmatic display and video campaigns access key tools not available through search and social platforms alone:
Precise Targeting
Programmatic exchanges integrate data from first and third-party sources. This enables creating highly-specific audience segments beyond basic demographics. Targeting can include interests like different cannabis product types, preferred consumption methods, events, and hobbies. Contextual placements also reach consumers interested in cannabis-related topics.
Cross-Device Reach & Optimization
While cookies are being phased out, alternative identifiers like IDFA, GAID, and hashed emails allow programmatic campaigns to continue determining common users across devices. This allows tailoring messaging when consumers are likely to convert. As programmatic learns more about a user over time, it optimizes the products and messages that perform best.
Real-Time Automation & Optimization
Programmatic bidding happens in an instant, automatically adjusting bids and placements based on campaign goals. Machine learning combined with efficient buying mechanics constantly refine targeting and creative combinations that resonate best.
Transparent Reporting
Robust analytics provide transparency into metrics that matter most for cannabis brands. Custom attribution models accurately track the influence each touchpoint has in driving a conversion. Brand safety settings also ensure ads run in safe environments.
Together, these programmatic capabilities provide cannabis brands the tools needed to engage their core consumers more precisely and effectively. As the legal market matures, programmatic adoption will rapidly accelerate to meet endemic audience demand.
Contextual Targeting Strategies for Cannabis Marketing Campaigns
Contextual targeting places ads on publisher sites and sections relevant to cannabis:
Cannabis & Alternative Health Content
Target sections on sites focused on medicinal use, clinical research, policy news, and benefits of compounds like CBD. Displays ads alongside contextually relevant content.
Cannabis Culture & Lifestyle Content
Reaches consumers reading cannabis news, entertainment stories, events listings, product reviews and cannabis-friendly recipes.
Endemic & Closely Related Interest Content
Sites focused on holistic living, herbalism, mind-body practices, and psychedelic therapy align well with psychographics.
Geo-targeting Around Events & Dispensaries
Geo-conquesting targets users near festivals, dispensaries or other relevant local destinations.
Contextual targeting enhances relevance, especially for endemic consumers immersed in cannabis content. Retargeting display ads after site visits or video views also reminds users of products.
Start Running Cannabis Programmatic Campaigns
For cannabis brands struggling to connect with core endemic consumers, programmatic advertising overcomes the limitations of other digital channels. Unprecedented targeting, efficient automation, and optimization capabilities provide the tools to reach high-value audiences.
As the legal cannabis market grows, programmatic adoption will escalate across the vertical. Brands should move quickly to become first-movers. Partnering with experienced agencies ensures you capitalize on programmatic’s benefits to achieve tangible business results.
Now is the time to harness this new frontier, reach untapped endemic audiences, and fuel your growth.
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