Skip to main content
Cannabis Advertising ROI

Whether you are attending expos, handing out marketing assets, using social media, or advertising on billboards, you are expecting some sort of return on the investment.  Social media and google analytics provide the data for the traffic to your website, however how do you quantify the return on billboard advertising?  In theory, billboard advertising seems like a great way to communicate to any and everyone driving or walking down the road.  However, a few challenges may potentially prevent your business from billboard advertising in the area you desire.

According to the Advertising Association of America, “Billboard advertising should produce big profits.  For every $1 spent on outside of home advertising, about $5.97 in sales are generated.”  Weedmaps has 416 billboards in 10 states and 55 billboards in Canada.  I can only imagine the price tag for each billboard, although, it is public information that Weedmaps brings in $400,000 in revenue per day.


I think one of the hardest pills to swallow for any cannabis company looking to advertise on billboards is the fact they do not have the luxury to use the investment as a tax write off (per 280E Provision of the Federal Code).  Another challenge is adhering to the BCC advertising regulation, which states that all printed communication may only be displayed where at least 71.6% of the population is reasonably expected to be 21 years of age or older as determined by reliable up to date audience composition data.  As a business owner, do you focus on other channels of marketing or do you tread carefully in your advertising words and use the ever popular medium, billboards?


Comments

Popular posts from this blog

Dichotomy In the Industry
Who wants to own a cannabis company?  Who owns many of the existing cannabis companies?  Who are the people investing in new canna ventures?Is it wiser to invest in an existing brand or create your own from scratch?  The answers to these questions may not be as obvious as many would assume.  The first question is simple…. Everyone wants to own a cannabis company.  The other answers would surprise many people. 
Most associate cannabis companies with the typical stereotypes.They expect guys like Willie Nelson or Bob Marley to be the CEO.  These assumptions are so far from the truth it’s scary.  The average canna investor seemingly own suits valued more than some cars.They are high net worth, serial entrepreneurs that see not only the potential, but also the rewards associated with the cannabis industry.  Many of these investors do not even use the products regularly, however, they see the green!  We are in the midst of a modern day green rush.  Many other states …
Location, Location, Location.
The time has finally arrived! The first adult use cannabis customer has made a purchase legally in California.Although CA is not the first state to legalize cannabis is it by far the largest.It is not breaking news that thousands of people have been and will continue working to enter the cannabis space in California in hopes of capitalizing on the huge opportunities.A lucky few have already begun or completed the process to enter the market legally starting January 1, 2018.Most of these businesses have been operating in the medical market and have a proven track record, others will be opening their doors or hitting the shelf with their product for the first time.Either scenario has one common denominator - they have a location. The most well thought out business plans are just words on paper until a location is secured.It seems so simple, buy or rent a space and open your business.Thousands if not millions of people have started their own small busines…