As the legal cannabis and cannabidiol (CBD) landscape expands across the United States, brands in this industry are pioneering digital advertising.
With more viewers now using connected TV (CTV) devices, CBD, and ultimately cannabis brands, are at the cusp of a marketing opportunity to improve accuracy, reach, and engagement.
As more states adjust their laws and prepare for federal legalization, CTV devices are emerging as a powerful tool.
Reach your target audience through CTV
CTV advertising offers an unprecedented level of audience specificity. This feature is especially beneficial for CBD brands that are new to the market and need to answer the important question, “Who is my customer?”
Unlike traditional TV advertising, which broadcasts broadly, CTV allows brands to target viewers based on detailed data such as viewing habits, age, interests, and demographics.
This precision allows CBD brands to tailor messages that resonate with individuals who are likely to be interested in their products. For example, a CBD brand that offers products aimed at pain relief could target consumers who are statistically more likely to experience chronic pain, but with a focus on relaxation or anxiety reduction. Brands that do so may target a completely different wellness-focused audience.
Also, don't be fooled into thinking this is only aimed at younger consumers. While Gen Z and Millennials are the main supporters of CTV, with 63% of 18-34 year olds using it daily, CTV is popular across all age groups, with 58% of 35-54 year olds using it, and 55% of 35-54 year olds using it daily. Used by 27% of people over the age of 2. It's every day.
Some brands, understandably, still believe that CTV advertising is too expensive or that they can't promote products that aren't trending. However, with the right strategic approach, these are no longer rigid barriers to entry.
As laws evolve, cannabis brands can also take the same targeted approach to connect with consumers who are interested in their content. Focusing on specific segments facilitates higher engagement rates, better product education, and clarity on who to reach to achieve the best ROI.
ACR technology and personalization
Once you understand your audience, it's time to figure out where to reach them. The way to do this is by using Automatic Content Recognition (ACR) technology.
This allows advertisers to segment their campaigns and target different demographics based on viewing patterns. For CBD brands, this means the ability to differentiate between viewers who prefer wellness products and those who enjoy cooking shows, and tailor messaging to appeal to each audience's interests and potential CBD usage. .
With ACR targeting, CBD brands can reach self-care-focused audiences with educational messages about the benefits of CBD for health, while delivering CBD-infused edible oils to food lovers. You can market it.
This strategic segmentation not only makes your ads more relevant, but also increases your chances of conversion.
Today's digital advertising offers the flexibility of customization to ensure that the content being served is delivered to the most relevant enthusiasts and potential buyers.
These units can include various elements such as testimonials, geo-targeting, daily proration features, ISI information, QR codes, etc., ensuring an engaging advertising experience.
For example, late-night ad slots may feature products for sleep, while daytime programming may be better suited for products focused on stress relief.
While there is still a market reluctance to embrace this growing category, creating a barrier to scalable advertising, CTV provides a careful and personalized way to educate and market to interested consumers. We will provide you with a method.
Increased usage of CTV
At this point, CTV is not a new field. It has become the main stage. According to TV Technology, the number of cable subscribers is expected to decline by 11% in 2022 and 16% by 2025, equating to approximately 7.37 million households in 2022.
Meanwhile, over-the-top (OTT) is poised for continued growth driven by the availability of over 80 OTT services, historically ad-free platforms that have introduced ad-supported options, and real-time content. It is predicted. The interactive nature of the CTV platform also enables innovative ad formats that increase viewer attention, such as clickable ads that link directly to product pages or nearby retailers.
As cannabis brands watch the market mature, they can look to CTV as fertile ground for when federal legalization allows them to take advantage of its full potential.
Increasing CTV adoption not only means a wider audience, but also an increased acceptance and expectation of seeing cannabis-related advertising in mainstream media. However, being the “first'' in anything does not come without hurdles.
At least some CTV platforms currently require ad creatives to be reviewed before final approval, and may only allow you to promote certain products. This highlights the importance of working with an ad tech partner who is familiar with these complex issues, is scalable, and can support your compliance efforts.
Streaming TV devices are paving the way to a new era of digital marketing, especially in this category. With the ability to target specific audiences, increased adoption, and advances in personalization, CTV helps CBD brands reach different demographics and understand their audiences for highly effective campaigns. It is an ideal platform for
View all posts
