The cannabis industry is experiencing a fascinating dichotomy: while states like California and Colorado are seeing market consolidation after years of growth, newly legal states like Ohio and New York are just beginning their green rush. For cannabis brands, this creates both challenges and opportunities in connecting with consumers. Let’s dive into how smart brand advertising can make the difference between thriving and merely surviving in both market conditions.

The Tale of Two Markets

Mature Markets: Survival of the Fittest

Remember when every other week seemed to bring a new cannabis brand to market in California? Those days of explosive growth are evolving into something more complex. In mature markets like California, Washington, and Colorado, we’re seeing a natural market consolidation that separates the wheat from the chaff.

Recent data from BDSA Analytics suggests that in California alone, the number of active cannabis brands decreased by approximately 15% in 2023, while total market revenue remained relatively stable. This isn’t a sign of market weakness – it’s a sign of market maturation. The brands that are thriving are those that have built strong connections with their consumer base.

The challenge? Standing out in a sea of established players. The opportunity? A more sophisticated consumer who knows what they want and is loyal to brands that speak to them authentically.

Emerging Markets: The Gold Rush 2.0

Meanwhile, in states like New York, New Jersey, and Ohio, we’re seeing the exciting early stages of market development. The energy is palpable – new brands are launching weekly, and consumers are eager to explore. But this creates its own set of challenges.

According to MJBiz Daily, new cannabis markets typically see a 200-300% increase in brand presence within their first 18 months of operation. While this presents enormous opportunities for first-movers, it also means brands need to work harder to capture consumer attention before the market becomes saturated.

The Power of Point-of-Purchase Advertising

This is where strategic brand advertising becomes crucial – particularly at the point of purchase. Think about it: the average cannabis consumer spends 8-12 minutes in a dispensary making their purchase decision. That’s your window of opportunity to make an impression.

Digital out-of-home (DOOH) advertising, especially in-dispensary displays, offers a unique advantage in both market scenarios:

In Mature Markets:

• Helps established brands maintain visibility in a crowded field
• Reinforces brand recognition at the crucial moment of purchase
• Enables dynamic messaging to highlight promotions and new products
• Reaches consumers who are actively in buying mode

In Emerging Markets:

• Creates immediate brand awareness with new consumers
• Educates customers about product features and benefits
• Builds trust through professional presentation
• Establishes brand presence before the market gets crowded

The Numbers Don’t Lie

Recent studies have shown that DOOH advertising in retail environments can increase brand recall by up to 52% compared to traditional static displays. For cannabis brands specifically, a 2023 study by Cannabis Business Times found that dispensaries using digital displays reported an average 23% increase in featured product sales.

Making the Most of Your Advertising Dollar

Whether you’re defending your territory in a mature market or staking your claim in a new one, here are some key strategies for effective dispensary advertising:

• Know Your Audience: Different markets have different consumer profiles. Mature market consumers often seek specific experiences and value consistency, while emerging market consumers may need more education and guidance.
• Timing Is Everything: Use day-parting in your digital displays to match your message to shopping patterns. Morning shoppers often have different preferences than evening customers.
• Keep It Fresh: Regular content updates keep your brand relevant and give consumers a reason to pay attention to your messaging.
• Track and Adapt: The beauty of digital advertising is the ability to measure results and adjust strategy in real time.

The Future of Cannabis Brand Advertising

As more states legalize cannabis and markets continue to evolve, the importance of strategic brand advertising will only grow. The winners in both mature and emerging markets will be those who understand how to effectively communicate their brand value to consumers at the moment it matters most.

The cannabis industry is unique – it’s simultaneously a mature market and an emerging one, depending on where you look. This creates unprecedented opportunities for brands that understand how to navigate both landscapes effectively.

Making Your Move

Whether you’re fighting for market share in California or launching in New York, the time to invest in brand advertising is now. The cannabis market waits for no one, and the brands that succeed will be those that effectively capture consumer attention and build lasting relationships.

Ready to elevate your brand’s presence in dispensaries? Let’s talk about how digital out-of-home advertising can help you connect with cannabis consumers when and where it matters most.

Note: This blog post references data from various industry sources including BDSA Analytics, MJBiz Daily, and Cannabis Business Times. For the most current statistics and market data, please refer to these organizations’ latest reports.

References:

• BDSA Analytics: “2023 Cannabis Market Overview”
• MJBiz Daily: “Cannabis Market Analysis: Emerging States Report 2023”
• Cannabis Business Times: “Retail Technology Impact Study 2023”
• Geopath: “DOOH Effectiveness in Retail Environments Study”