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?