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In the rapidly growing cannabis industry, CBD brands face unique challenges when it comes to marketing their products online. With strict regulations and fierce competition, simply having a great product isn't enough - you need effective CBD digital marketing strategies to stand out and reach your target audience.
Fortunately, by implementing the right best practices in your CBD marketing efforts, you can navigate the complexities of promoting CBD online and grow your brand successfully.
In this article, we'll explore key strategies like creating high-quality content, leveraging influencer marketing, optimizing for search engines, and more to help you engage CBD consumers and boost your sales in this exciting industry.
What is CBD?
CBD, or cannabidiol, is a popular compound extracted from the flowering tops, leaves, and resin of two strains of the cannabis plant [1]. It belongs to a broader class of compounds called cannabinoids that are found in abundance in the cannabis plant.
Unlike THC, which is known for delivering the "high" feeling typically associated with marijuana when ingested or smoked, CBD doesn't produce a sense of euphoria, hallucination, or psychoactivity when consumed.
Why Has CBD Become So Popular?
Several benefits may explain CBD's rise in popularity [3]:
- CBD is not psychoactive: This overarching property makes CBD perceived as more acceptable and safer than other cannabis products. Anyone can use it without the risk of getting high, which is a big plus.
- It's legal: The sale of CBD products became completely legal after the passage of the Agriculture Improvement Act of 2018 (aka Farm Bill 2018).
- It's an effective alternative treatment: There are hundreds of scientific research studies and reviews showing that CBD is indeed effective in addressing a wide array of conditions related to depression, anxiety, and pain.
Challenges in CBD Marketing
Marketing CBD products presents a set of challenges that most FMCG businesses don't have to navigate. If you want to promote your CBD products and reach your target audience then you'll need to know the basics, plus get a little creative.
Despite the growing popularity of CBD, marketing it can be a tricky endeavor due to various restrictions and regulations [22]. However, with the right digital marketing strategies, promoting CBD online becomes a walk in the park, providing businesses with the opportunity to reach a wider audience.
Consumer Confusion
One of the primary challenges in CBD marketing is consumer confusion. The novelty of CBD products has created a significant need for consumer education regarding their benefits, usage, and safety. The main one is that most people think CBD is the same as weed and will get you high.
Legal Restrictions
Another significant challenge in CBD marketing is navigating the complex legal landscape. CBD products are subject to stringent regulations that vary across jurisdictions, posing challenges for marketers to ensure compliance and avoid legal issues.
The uncertain legal status of CBD leads to ambiguity and confusion regarding permissible marketing practices and compliance with regulatory requirements.
Strategies for CBD Marketing
CBD is a challenging product to promote online but all is not lost. We're going to look at the best ways businesses can promote and sell CBD, with the chance to reach a wider audience.
1. Email Marketing
Email marketing is the most powerful tool for CBD businesses to nurture customer relationships and drive sales growth. By sending targeted and personalized campaigns to emails collected, brands can keep their audience engaged, and informed, but most importantly the brand will stay top of mind.
However, email inboxes are a dogfight for customers' attention. The way to win is to increase your sending frequency without increasing spam rates.
To maximize the effectiveness of your CBD email marketing efforts, consider the following best practices:
Building and Segmenting Your Email List
Growing a high-quality email list is essential for the success of your campaigns. Implement various tactics to collect opted-in email addresses from existing and potential customers, such as:
- Adding subscription forms on your website [106]
- Offering lead magnets like discounts or exclusive content in exchange for email addresses
- Encouraging opt-ins during online and in-store purchases
- Utilizing digital kiosks in brick-and-mortar locations to capture sign-ups
- Create quizzes that provide product suggestions to best match a customer's need in exchange for their email address
- Use interactive video funnels to collect email addresses
Once you have a substantial email list, segment your subscribers based on shared characteristics, such as engagement, interests, zero-party data, demographics, purchase history, or location. This allows you to send more targeted and relevant content to each group, enhancing engagement.
One area in which we often see missed opportunities is how CBD brands approach their prospect list. (These are people who’ve never bought before)
Typically a prospect opts in for a discount or coupon and will start receiving emails. Focus on segmenting your prospect list, leverage the data of opt-in and engagement, and make smarter decisions about how to approach a lead.
A 90-day-old opt-in / prospect who “opens” every email, but not has clicked, who has not purchased, is most likely not going to purchase anytime soon.
Yet, you should spend time sending them more messages.
While most of your revenue is found in:
- Customers
- Recent prospects (within 30 days)
Crafting Compelling Email Campaigns
To create impactful email campaigns that resonate with your CBD audience, focus on the following elements:
6 Steps to Creating High-Converting Campaign Templates
Once you have the above basics, you can begin building each email campaign template. This can be done inside your email platforms builder to generate an HTML email or inside Figma to create an image-sliced email.
Build Your Core Pre & Post Purchase Email Flows
Email flows allow CBD e-commerce brands to trigger emails sent to audiences based on actions they perform on the website. For example, if a website visitor subscribes via a lead magnet opt-in form they will enter the Welcome Series.
Different triggers activate different flows based on the stage of a customer's journey. Each flow needs to be tailored toward a particular objective to help a customer travel further down the conversion funnel.
Ensuring High Click-Through Rates
To maximize click-through rates and encourage your subscribers to take action, implement the following strategies:
- Segment your email list to deliver highly targeted and relevant content [110]
- Make your promotional offers prominent and unmissable by using bold text or eye-catching visual
- Test different email designs and layouts to identify what resonates best with your audience
- Monitor your email metrics closely and continuously optimize your campaigns based on performance data
By building a quality email list, crafting compelling campaigns, building out your flows, and optimizing for click-through rates, CBD businesses can harness the power of email marketing to build stronger customer relationships and drive revenue growth in this rapidly evolving industry.
2. Effective Content and SEO Strategies
Creating high-quality, informative content is crucial for CBD businesses looking to attract and engage potential customers at the top of the funnel. By focusing on informative topics related to your products, and incorporating relevant CBD keywords, businesses can improve their search engine rankings and drive more organic traffic to their website [76].
However, don't just focus on creating only blog content. You need to optimize different parts of your website for different search intent keywords. Commercial keywords should be used to optimize collection pages with information that addresses buyer concerns and transactional keywords on product pages.
Create High-Quality Blogs
When crafting blog posts and other content, it's essential to put CBD at the center of every piece. This helps establish the brand as an authority in the industry and provides valuable information to readers seeking to learn more about CBD and its potential benefits.
Create a topical map with pillar pages and sub-pages to improve your website searchability. You can then create a content calendar of content that you want to publish.
Prioritize Search Engine Optimization (SEO)
In addition to creating quality content, CBD businesses should prioritize search engine optimization (SEO) to increase their online visibility. CBD SEO involves optimizing web pages and content for search engines, helping companies attract more customers and generate leads.
To maximize the impact of their SEO efforts, businesses should:
- Create quality content optimized for relevant CBD keywords
- Ensure their website is mobile-friendly and optimized for speed
- Build high-quality backlinks from reputable websites
- Utilize header tags, meta descriptions, and other on-page SEO elements
Guest posts are another powerful tool for CBD brands looking to expand their reach and build trust with potential customers. By partnering with influential websites that have engaged readers in the CBD or wellness space, brands can tap into new audiences and leverage the credibility of these trusted voices [77].
When implementing a guest post strategy for CBD brands, it's important to:
- Identify websites whose values align with your brand
- Develop authentic, long-term partnerships
- Create engaging, informative content that resonates with the website's audience
- Track and measure the success of your campaigns
3. Social Media Marketing
Social media platforms like Facebook, Instagram, YouTube, and TikTok have transformed the way businesses interact with customers [85]. With the average U.S. adult spending 3 hours and 43 minutes per day on mobile devices, targeting customers where they spend time makes social media a powerful marketing tool, especially for the CBD industry, where paid advertising is restricted.
It is an effective way to reach potential customers and engage with the community. Content should be created to attract new customers and keep existing ones engaged.
It could include informative posts, educational videos, and promotional offers. Businesses should also respond to customer inquiries and complaints promptly [22].
To effectively use social media for growing your CBD brand, consider the following best practices:
Use Keywords Your Customers Use
Identify relevant keywords your customers use on social media platforms and incorporate them into your social media posts, captions, and image alt text to help users find your content.
However, be cautious with some keywords, as platforms like Instagram ban "sensitive" hashtags, including those with the word "cannabis" [85]. Research keywords before using them to avoid being flagged or hidden from algorithms.
Post Regularly
Analyze when your target audience is most active on each social platform and determine the optimal posting frequency. Consistency is key to avoiding getting lost in the crowd.
Diversify Your Content
Use a variety of content formats, such as videos, podcasts, stories, and boomerangs, to communicate your message and make a greater impact on your audience. Relying on a single content type may not be the best use of social media.
To maintain compliance on social media, CBD brands should:
- Avoid making false or misleading claims about their products [46]
- Refrain from promoting overconsumption or depicting consumption in certain states
- Steer clear of making health or therapeutic claims, or offering medical advice
- Avoid using imagery that appeals to children, such as cartoons or dancing animals
- Refrain from running games or competitions related to consumption
Make Use of Influencers
Influencer marketing is a loophole to navigate restrictions on cannabis marketing [85]. Influencers, as content creators and brand ambassadors, can recommend products without directly representing the brand, allowing CBD companies to promote their products without getting tangled in marketing legalities.
Influencers have cultivated loyal followers who trust their recommendations and insights [49]. By partnering with relevant influencers, CBD brands can tap into this trust and boost their credibility.
Consistency is crucial when working with influencers. Regular updates and ongoing positive experiences reinforce trust and reliability, making their endorsements feel genuine rather than one-off advertisements.
By leveraging the power of social media and partnering with trusted influencers, CBD brands can navigate the complexities of cannabis marketing while building credibility, educating consumers, and driving engagement [50]. A strategic approach to influencer marketing can help CBD businesses thrive in an increasingly competitive landscape.
4. Using Multiple Marketing Channels
Online isn't the only channel available to CBD businesses. A variety of marketing channels to effectively promote your products and reach your target audiences should be deployed in a multi-channel approach.
This allows companies to engage with potential customers through different touchpoints, increasing brand visibility and driving sales [22].
Offline and In-Store Promotions
Traditional marketing outlets such as television, radio, newspapers, and magazines are typically off-limits to CBD products, but what about offline events and activities, such as street promotions and pop-up stores?
Here are some effective ways to leverage offline and in-store promotions for your CBD brand [7]:
- Creative Displays: Utilize eye-catching displays and end-cap placements to draw attention to your CBD products and encourage customers to make a purchase
- In-Store Sampling: Offer product samples to allow customers to try your CBD products before buying, increasing the likelihood of a sale
- Loyalty Programs and Discounts: Implement loyalty programs and offer discounts to incentivize customers to choose your brand over competitors
Word of mouth is still one of the best ways to promote your CBD products. Ask your customers for feedback and referrals, and give them the incentive to spread the word about your brand.
According to a recent survey conducted by Brightfield Group and Puro, a majority of CBD marketers (62%) say that the best way to reach potential customers is through in-store promotion [7]. This was followed closely by word of mouth (60%), online retail channels (52%), and offline retail channels (49%).
It's clear that using multiple channels is the best way to promote CBD products in retail, but make sure you understand the regulations first before engaging in any promotional activities.
By leveraging a combination of offline, online, and in-store promotion strategies, CBD businesses can effectively navigate the complexities of marketing their products and thrive in an increasingly competitive landscape.
5. Creating a Distinctive Brand Identity
Within the last few years, many brands have entered the CBD space all essentially offering the same products that benefit customers in the same way. So how do prospective customers choose your product over the competitors if the benefits are the same?
Create a distinctive brand identity to stand out in an increasingly competitive market. By developing a unique brand fit, crafting a compelling value proposition, and delivering a memorable message, CBD brands can effectively differentiate themselves and connect with their target audience [67][68][75].
Determining and Setting Brand Fit
To establish a strong brand fit, CBD businesses must first identify their target customer and understand their needs, preferences, and pain points.
Conducting thorough market research and analyzing competitors can provide valuable insights into how to position your brand in a way that resonates with your ideal customer.
Consider the following when determining your brand fit:
- Who is your target audience? What are their demographics, interests, and values?
- What problems does your CBD product solve for your customers? How does it improve their lives?
- What makes your brand unique compared to competitors? What are your strengths and weaknesses?
Developing a Unique Value Proposition
A unique value proposition (UVP) is a clear statement that communicates the specific benefits your CBD brand offers and how it solves your customers' problems better than the competition. Your UVP should be:
- Simple and concise
- Credible and believable
- Different from competitors
- Memorable and inspiring
- Aligned with your target audience's needs and values
To craft a compelling UVP, focus on the emotional and rational benefits your CBD products provide. For example, if your target audience is elderly individuals seeking pain relief, your UVP could be: [Your Brand Name] helps seniors manage pain naturally, so they can enjoy more quality time with loved ones.
Crafting a Memorable Message
Your brand message should be an extension of your UVP, communicating your values, mission, and personality in a way that connects emotionally with your target audience [67][68]. To create a memorable message:
- Use language and tone that resonates with your ideal customer
- Highlight the unique benefits and features of your CBD products
- Tell your brand story in a way that is authentic, relatable, and inspiring
- Ensure consistency across all marketing channels and touch points
By investing time and resources into developing a distinctive brand identity, CBD businesses can build trust, credibility, and loyalty with their target audience. A strong brand identity not only helps you stand out in a crowded market but also lays the foundation for long-term success in the CBD industry.
Overcoming Common Marketing Challenges
We now have all the possible channels that you can use to market your CBD-based products. However, there are still challenges that need to be overcome. Let's look at what they are and how you can bet them.
Consumer Education and Brand Differentiation
One of the primary challenges in CBD marketing is consumer confusion with THC. The novelty of CBD products has created a significant need for consumer education regarding their benefits, usage, and safety [118].
This presents a challenge for marketers to effectively convey accurate information and build trust amidst widespread misinformation and misconceptions surrounding CBD.
To overcome this hurdle, businesses should invest in educational content initiatives that provide accurate information about CBD benefits, usage, and safety. Collaborating with industry experts and healthcare professionals can enhance credibility and trustworthiness.
By prioritizing transparency and authenticity in marketing communications, businesses can build credibility with consumers and establish trust.
Dealing with Market Saturation
Recent legalization efforts and increased CBD popularity have led many investors into the CBD industry. That means the sector faces stiff competition due to the many CBD brands being set up.
To compete effectively, you need to be creative in branding, product placement, and creating an effective CBD marketing strategy to succeed in this competitive market.
Targeting the Right Audience
To get the most out of your CBD marketing strategy, you need to define your target audience. By understanding your ideal customer demographics, you can tailor your messaging and product offerings to resonate with their needs and preferences [55].
A recent study from Gallup reported that 14% of US citizens (1 in 7) say they personally use CBD products regularly [58]. However, 50% of US adults do not use CBD, and 35% aren't familiar with any CBD product.
This presents a huge opportunity for CBD brands to educate and attract new customers who are curious about the therapeutic benefits of CBD.
Know Your Consumer Demographics
Demographic insights such as age, gender, income, marital status, and education can help determine the size of a potential market and inform decisions on new products, marketing strategies, and content [57]. For example:
Analyze Usage and Paths to Purchase
Brightfield Group estimates the CBD market will reach $16.8 billion in sales by 2025. Analyzing how different consumers use and purchase CBD can inform your product and distribution strategies [57]. Key questions to consider:
- How do consumers use CBD? (frequency, dosage, product types)
- Why do they use CBD? (medical conditions, wellness, recreation)
- What attributes and benefits do they seek in CBD brands?
- Where do they prefer to purchase CBD products?
Adult CBD users in the US primarily use hemp-derived CBD products for pain (40%), anxiety (20%), insomnia (11%) and arthritis (8%) [58]. Women are more likely to use CBD for anxiety, while men are more likely to use it for help sleeping.
Understand Personality Attributes and Psychological Motivators
People are more likely to respond to messaging that speaks to who they are on a psychological level. Common psychological motivators that drive purchasing decisions include:
- Reward & Incentives
- Power & Authority
- Belonging & Community
- Achievement & Accomplishment
Understanding what truly motivates your target consumers to buy can inform a stronger brand positioning and product strategy. Honing in on the right messaging can relieve gaps in your purchase funnel and drive the consideration of your brand.
Leverage Consumer Interests
CBD is often a small part of the average consumer's day. By understanding their jobs, hobbies, and social interests, you can deeply relate to your target audience. Some top interest categories for CBD consumers include:
- Fashion & Beauty
- Food & Travel
- Health & Sports
- Home & Community
- Music & Arts
- News & Pop Culture
Knowing your audience's broader interests and brand preferences can guide partnership and content strategies that resonate. Follow the conversations on social media to understand what topics are top of mind for CBD consumers and let those insights influence your product and marketing decisions.
A data-driven approach to understanding your ideal customer is essential for success in this rapidly evolving industry.
Understanding the CBD Market
The CBD market has witnessed remarkable growth in recent years, driven by increasing consumer acceptance and evolving legislation. Conservative estimates project CBD sales to surpass $1.8 billion annually by 2022, a significant increase from approximately $500 million in 2018 [2].
This rapid expansion is expected to outpace the legal cannabis industry, which is estimated to be worth over $23 billion in the next five years or so.
Legislation
The legalization of hemp-derived products like CBD through the federal Farm Bill 2018 has been a major catalyst for the CBD market's growth. This legislation removed hemp, defined as cannabis sativa with < 0.3% THC, from the Controlled Substance Act [2]. As a result, hemp-derived CBD products became widely marketed and sold at various retailers without FDA approval [4].
Navigating Legalities and Regulations
Navigating the complex legal landscape surrounding CBD marketing is crucial for businesses looking to promote their products effectively. The 2018 Farm Bill legalized hemp-derived CBD products however this does not automatically mean that the distribution and advertising of CBD is legal across all states [7].
Federal Laws
The Food and Drug Administration (FDA) regulates CBD products under the Food, Drug, and Cosmetic Act (FD&C Act) and Section 351 of the Public Health Service Act. According to these regulations, it is illegal to add CBD to food products or label it as a dietary supplement [2].
To avoid legal issues, businesses must refrain from making any medical claims that the FDA does not approve. While mentioning the possible medical benefits of CBD is allowed, making unapproved medical claims is strictly prohibited.
State-Specific Rules
CBD advertising laws vary greatly from state to state, posing challenges for marketers to ensure compliance [22]. Some states require pre-approval for CBD advertising or proof of third-party testing [27]. Businesses must stay informed about evolving regulations and ensure strict compliance with all legal requirements.
Conducting thorough research on local and federal laws governing CBD marketing and establishing clear guidelines for marketing practices within legal boundaries is crucial.
International Regulations
When marketing CBD products internationally, businesses must consider the laws and regulations of each country they target. Some countries have more restrictive policies regarding CBD, while others have more lenient approaches. For example, in the European Union, CBD products containing less than 0.2% THC are legal, while in Canada, CBD is regulated under the Cannabis Act [4].
To successfully navigate international regulations, businesses should:
- Research the specific laws and regulations of each country they plan to market in
- Ensure their products meet the legal requirements for THC content and other criteria
- Work with local legal experts to ensure compliance with all applicable laws
- Adapt their marketing strategies to align with the cultural and legal norms of each country
By staying informed about the ever-changing legal landscape and working with experienced legal professionals, CBD businesses can effectively navigate the complexities of marketing their products while remaining compliant with federal, state, and international regulations.
Conclusion
The CBD industry has experienced remarkable growth in recent years, driven by increasing consumer acceptance, ongoing research into its potential benefits, and favorable legislation. However, marketing CBD products online presents unique challenges due to strict regulations and fierce competition.
By implementing effective digital marketing strategies such as creating high-quality content, leveraging influencer marketing, optimizing for search engines, and navigating the complex legal landscape, CBD brands can successfully reach their target audience and thrive in this exciting industry.
Maaly specializes in CBD marketing, attracting potential customers for businesses selling CBD products. By adopting a strategic approach to digital marketing and staying attuned to the ever-changing landscape, CBD brands can overcome the challenges of promoting their products online and achieve long-term success in this rapidly growing industry.
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