By 2025, the CBD consumer market is expected to generate more than $ 26 billion in revenue. This means more product choice, but also more competition. As CBD becomes more mainstream, creating a campaign that stands out from the crowd will be critical to continued growth and success. When done correctly, a digital marketing campaign can increase sales, increase brand and product awareness, and retain loyal customers.
Dive into the data
In a saturated digital market, the efficient use of data is a non-negotiable key to success. The tool will help you identify, attract and retain customers effectively.
In the beginning, market research will provide basic benchmarks for creating your product and campaign. The more details you get, the more specific, targeted and effective your campaigns will be from the start. Here are some basic ideas of New border data every CBD marketer should know:
- Eighteen percent of Americans have tried CBD, and users are consistently young, with 18 to 34 year olds being the most common users. However, those over 55 are twice as likely to be daily users.
- The three most popular form factors for CBD are, in order, oil / tincture, food / edibles, and topical / external. Gummy candies are experiencing a resurgence in popularity.
- The COVID-19 pandemic has caused a sharp increase in the consumption of CBD, especially in candy. About half of Gen Z and Millennials used CBD more frequently during the pandemic.
- Another side effect of the pandemic is that online CBD purchases have almost doubled, from 29% in the first quarter of 2020 to 47% in the second quarter.
- The top three reasons for using CBD are pain management, stress relief, and anxiety reduction.
- Among CBD users, more than 50 percent always or usually use familiar brands, while the percentage of those who try new brands and those who never notice the brand is around 25 percent.
Finding your audience is a crucial aspect of data collection. A common mistake among CBD marketers is to promote their product to a THC audience. While there is some overlap, audiences for CBD are much more wellness-oriented, while THC has a large recreational user base. Building comprehensive and targeted audience profiles takes time, but will pay off a lot.
To create these audiences, rely on first-party data. This is data that you collect yourself, giving you full control over collection methods and security. First party data may include email addresses, website browsing activity, information shared with you through surveys, etc. This data will go a long way in profiling and retargeting existing customers, as well as creating similar audiences for prospecting.
First-party data will continue to be valuable for the duration of your campaign and beyond. Metrics such as impressions, frequency, cost per acquisition, reach, website visits, specific page views, completion / re-observation rate, microconversions, cost per user, cost per add to cart, attribution / cross-device, convert / view-through, and more will provide granular insight into your marketing effectiveness and allow micro-adjustments to get the best possible return on ad spend .
Follow the rules
CBD marketing has the added complication of being banned – formally or unofficially – by some of the world’s busiest digital platforms. This includes Google, which explicitly prohibits CBD marketing, and Facebook and Instagram, which formally allow it, but meeting their compliance standards is virtually impossible. Everyone knows someone who accidentally crossed a very vague line and risked their entire presence on a network.
Some marketers may be tempted to try their luck on these platforms, but if your goal is lasting and effective campaigns, that energy is best spent on maximizing your efforts where they are most welcome. For example, you can alleviate the lack of Google ads with solid content and organic search engine optimization. This is especially important, as consumers looking for CBD products are likely already interested in purchasing and most will never get beyond the first page of Google. To reach young audiences on social media, Snapchat is generally more accepting of CBD ads and features fewer hoops to jump through, along with valuable behavioral information and campaign feedback.
Digital Marketing Options
Most importantly, CBD marketers always have access to programmatic advertising. While programmatic involves several different media formats, in general, once an ad or site is approved, it’s easier to scale to other platforms.
Programmatic is invaluable for CBD marketing because you can target almost anyone you love through such platforms, which means this is where being a data scientist really pays off. The key is to use a multi-channel approach to strategy. To fully exploit the impact of programmatic campaigns, dig deeper into multiple ad types, including display, native, audio, preroll, and connected TV.
When you dive into programmatic, use first-party data to gauge what you know about your customers and who your most valuable users are, then build predictive modeling to find more like-minded people to grow your audience. . The reports and data analysis provided by the programmatic platforms are very valuable and will help you to continuously optimize the campaigns.
The attractiveness of the ads and the liveliness of the copy won’t resonate if you don’t reach the right audience. Respecting the regulatory line and adopting a data transmission approach are fundamental elements of the campaigns that will stand out in this crowded industry.
Scott waldman is an account executive at the digital marketing agency Adtaxi. Prior to joining Adtaxi, he held sales and marketing positions in various verticals including e-commerce, CBD, health and beauty, technology, and retail. In his spare time, he enjoys traveling and cooking and believes that helping others is the key to achieving his goals.