As of 2022, 19 states have legalized the recreational use of marijuana and 37 states permit the use of medical marijuana to treat disease, while also allowing the sale of cannabis products like edibles and CBD oils. Even though the cannabis industry is still young, cannabis users have increased by 85% since 2009 to more than 123 million. As you may imagine, the industry is also growing, reaching revenues of $10 billion in 2018 and expected to surpass $40 billion in 2030. With each state that enacts more liberal cannabis laws, cannabis use increases in the US and so does cannabis advertising.
Cannabis advertising spend in the US has grown into the billions. In outdoor advertising, cannabis ad spend doubled from 2017 to 2019, rising to $110 million.
With this type of budget, it's no surprise cannabis ads have become more common. Advertisers are beginning to better understand cannabis audiences and how outdoor ads can increase store purchases, online visits, and word of mouth referrals.
Cannabis OOH Ads Drive Action
According to a report by the Out of Home Advertising Association of America (OAAA), cannabis outdoor ads are not only effective, but they drive a varied amount of actions that can help you stand out above your competitors. When we take a look at the data, it’s clear why cannabis advertisers are turning to outdoor advertising for its sales potential.
In the US, 47% of people in cities with a population of over 1 million recently noticed outdoor ads for cannabis products. That’s basically half of all adults in urban centers like Chicago. Your OOH ad in the Windy City will get noticed.
The actions audiences take are also promising. After seeing a cannabis outdoor ad, 54% of people shared the information on the ad with someone else through word of mouth. Word of mouth is our most trusted form of referral, so knowing that more than half of the people who see cannabis ads are excited to share the information with someone else and recommend it is incredible news.
What’s more, 45% of US adults made an in-store purchase after seeing an outdoor ad. The correlation is there: seeing an outdoor ad gets people to visit stores and make purchases.
The actions taken online are also positive for cannabis outdoor ads. For all US adults who have recently noticed a cannabis outdoor ad, 48% visited the advertiser’s website and 36% made a purchase online. These are highly encouraging numbers; it tells advertisers that when it comes to cannabis, over a third of people are willing to make purchasing decisions based on outdoor advertising. And the number grows when we look at younger generations: 46% of Millennials make purchases online, a whopping 10% more than the US average. Even though outdoor ads are considered traditional advertising, they have highly effective campaigns for the younger generations who are refreshed to see a creative in the real world rather than being barraged on their phones.
Outdoor ads also boost engagement on social media. After seeing a cannabis outdoor ad, 39% of people followed the brand on social media. People trust brands more when they see them on outdoor ads, and they tend to want to keep in touch with the brand. Following them on social media is a simple way to keep getting information about this brand. But the social engagement doesn’t stop there. 25% of people who recently saw a cannabis outdoor ad took a photo of the creative to share on social as well. When people share your creative on social media, you get even more impressions on your ad, boosting your reach and effectiveness. We can help you make compelling creative for higher engagement.
Finally, cannabis audiences are also willing to use technology to find out more about an advertiser. Of those who recently saw a cannabis outdoor ad, 27% use QR codes and SMS to engage with cannabis brand content. And of course, this number rises for younger generations, up to 34% willing to use QR codes and SMS. This is good news for advertisers looking to use QR codes or SMS for increased analytics in their cannabis outdoor ad campaigns.
Because the industry is still in its nascent stages, now is a great time to capitalize on the growing interest in cannabis products. New and existing brands are starting to face tough competition in this sector due to larger brands trying to enter the cannabis industry. The competition makes marketing and advertising even more essential, and with outdoor ads, you can rise above the growing competition.
Regulations on Cannabis OOH Advertising
Most states have some type of restriction on advertising, such as what imagery or words can be displayed. Some states ban cannabis advertising outright, citing federal law that continues to classify marijuana as a Schedule I controlled substance. When planning a cannabis outdoor campaign, it’s important to be aware of the restrictions in each state, though these can often be easily followed while still creating compelling campaigns.
In Illinois, some of the restrictions on cannabis ads include no cartoons or other imagery appealing to minors. The restrictions also include no ads on public transit or bus shelters, and no use of imagery depicting the use of cannabis products. As a cannabis advertiser, you’re not allowed to put an outdoor ad within one thousand feet of places that cater to minors such as schools, parks, playgrounds, arcades, libraries.
Your best path going forward is to enlist the help of an advertising agency who can help you navigate the laws surrounding cannabis advertising. At View Chicago, we know Illinois advertising laws and have ran successful cannabis OOH campaigns in Chicago. We’d be happy to schedule a free consultation and answer any questions you may have.
Cannabis Advertising Tips
We’ve carried out some successful cannabis outdoor campaigns in Chicago, and we often get asked how to maximize results. Below are some of the tips we suggest cannabis brands to take into account in their next outdoor campaign.
Go Hyper Local
Due to the legal limitations of cannabis outdoor ads, the best path of action is often a hyper local campaign focused on a neighborhood approach.
Hyper local campaigns have an amazing benefit: you’re able to customize the location of the ads to better reach a target audience. Take a street in Chicago as an example. If you advertise on a street full of bars and restaurants, you’re almost guaranteed to have an adult target audience and won’t have to worry about showing your creative to minors.
And that’s just a benefit that pertains to cannabis outdoor ads. Hyper local campaigns are flexible, customizable, and effective. You’re reaching people many times in their neighborhood, which means increased ad recall and increased trust in your brand and messaging.
In the coming years, we will see greater certainty over cannabis laws and regulations as well as more consistent decisions by local authorities regarding the legality of billboards and other outdoor cannabis advertising options.
Cannabis Customers Are Changing
The average cannabis fan is changing, and marketing and advertising needs to understand how their consumer profiles are changing.
For instance, the stereotypical image of a “stoner” is no longer the largest target market in cannabis outdoor ads. Millennials and Gen Z enjoy using cannabis products but can come from all walks of life. High power executives use cannabis, and bartenders enjoy it as well. As the stigma is removed, so are the boundaries between the consumers.
The trick here is finding the messaging that resonates with the key demographics you’re looking to target. Not all cannabis products are for everyone, so making sure you target the right people via messaging and location is key to help your campaign be a success.
Brands Need to Educate Consumers
Cannabis is a relatively new product, with many different products like edibles, flower, and oils. With so many products, brands, and regulations, one of the most effective strategies for a cannabis brand is to establish themselves as a trustworthy organization that can help people find the most enjoyable products for them.
You can help educate people on so many different aspects of the industry: where cannabis is grown and how that affects the effects, how to roll joints or blunts, local laws regarding the use of marijuana, and much more. With a focus on education, you focus on building credibility and visibility (two things that outdoor ads are perfect for) and stand out from the competition.
Messaging Around Vacationing
People enjoy using cannabis products when they’re relaxing. When are most people trying to relax? When they’re going on vacation. If you’re looking for increased effectiveness in your cannabis outdoor ad campaign, tie your messaging to vacationing.
In fact, the cannabis outdoor ad research supports this. 38% of people surveyed were likely to consume legal recreational cannabis on vacation. For those who were regular cannabis users, that number jumps to 88%.
The vacation activities most likely to generate interest for recreational cannabis use among adults included seeing a concert, going to a bar or restaurant, participating in tourist attractions, hiking or other outdoor activities, and museum and art exhibits. Knowing this can help you position your outdoor ads near locations that offer these services, and even tie your messaging to these activities. For Chicago residents leaving the city or state, they’ll be more likely to buy cannabis products before they leave rather than looking for them in a different place they don’t find familiar.
Cannabis is a billion-dollar business, and there’s a lot of money to be made as CBD oil and other forms of legalized cannabis make their way into the mainstream. With outdoor ads, you can capitalize on finding the right audience and guiding them to make purchases, speak with one of our outdoor advertising experts today to see what makes sense for you.