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Increasing rates of legalization across the US are creating a massive boom for the cannabis category. Combined US medical and recreational marijuana sales are projected to top $33 billion in 2022, which represents a 32% increase year-over-year. This number is expected to rise again to $38.8 billion in 2023—and that growth comes against the backdrop of a 2022 executive order that may have far-reaching consequences for the industry and its financing.
Today, as cannabis comes to our cities’ Main Streets and category players enjoy greater market opportunities, there is more investment going into cannabis advertising and marketing in an effort to break down the stigmas, expand awareness, and attract sales. Moving into 2023, here are three trends to watch out for:
Before Google finally sunsets third-party cookies on its Chrome browser, brands will want to start utilizing a data management platform (DMP) to capture consumers’ first-party data—whether that’s online or offline. Cannabis brands essentially need to modernize how they collect and manage that data and parse it into segments to execute targeting strategies within the digital ecosystem.
Adjacent to cookieless data, advertisers should look to establish lookalike audiences. This is a great way to capture new customers and foster greater levels of brand perception in the cannabis space. Marketers will also want to build sound retargeting campaigns to keep the loyalists they’ve already earned.
Location-based targeting and digital out-of-home (DOOH) placements are going to skyrocket within the programmatic space, especially as DSPs continue to get access to more DOOH inventory. So in cities, for example, advertisers can run campaigns at gas stations and bus stops that point consumers in the direction of the nearest point of purchase.
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Want to learn about some of the macro trends affecting digital marketing more generally? Check out our 2023 Trends Report to stay ahead of the curve as you plan for the year ahead.