A new report by NXTeck (New Frontier Data's Adtech division) and the Cannabis Marketing Association (CMA) has revealed that most cannabis Marketers have to work with an annual budget that's worth less than $50,000. The report dubbed “2022 Cannabis Digital Marketing Survey: How Cannabis Marketers Are Chasing Their Share of a $32 Billion Market” was released in the month of May and detailed the results of a recently concluded survey.
In spite of a limited budget, most marketers have ambitious goals; national-wide goals that thin out an already lean budget. The cannabis consumer market is also growing in size and diversity, making it harder for cannabis marketers to get their message across to the right audience.
Surprisingly, regulatory hurdles did not feature among the top 3 marketing challenges faced by the marketers. This is in spite of the strict marketing rules that have been imposed on the cannabis industry. Budget and staffing constraints were the most significant challenges that the surveyed marketers cited.
Here are a few of the things that were revealed by the survey:
- Over 80% of the surveyed cannabis Marketers face difficulty in trying to get their message to their target audience
- Most of the marketing budget is spent on social media marketing and other top-of-funnel awareness campaigns
- Almost 50% of the surveyed marketers reported working with constrained budgets; less than 50% annually
An analysis of the report revealed that most cannabis Marketers are probably focusing on the wrong channels while ignoring channels that perform well. According to Lisa Buffo (CEO of CMA) and Gary Allen (CEO of NFD), most cannabis Marketers are headed in the right direction but can do much better with more support.
Lisa picked a disconnect from the survey where nationwide marketing efforts coupled with early awareness did not produce large and less refined databases. She suggested that this was something to be addressed. For Gary, it was the declining use of programmatic ads that caught his attention. But overall, they concluded that there's an opportunity to improve marketing results by putting more effort into bottom-of-funnel strategies such as email marketing and other programmatic ad campaigns.
The surveyors asked the cannabis market to name a charity (cannabis-related) that NFD and CMA should send a contribution to and most suggested the Last Prisoner Project. The Last Prisoner Project aims to ensure that all those who are in prison for cannabis-related non-violent crimes are released. It seems that social justice is close to the heart of most cannabis marketers, and the cannabis industry as a whole. NFD and CMA have made the donation. Readers who wish to read the full report can access it through this link.