MENU

Reason.com

Free Minds & Free Markets

Even Where Weed Is Legal, Government Regulation Makes Advertising It a Nightmare

"You can't post pictures of buds. You can't post pictures of selfies of a bong hit."

Atomazul | Dreamstime.comAtomazul | Dreamstime.com Cannabis-based companies must navigate complex state-by-state regulations in order reach their customers. Despite their growing popularity and market value, cannabis products remains difficult to advertise, thanks to the government.

"It's lucrative for a few and very challenging for a great many," Robert O'Shaughnessy, the co-founder and president of marketing and digital services for Higher Ground—a PR firm dedicated to marketing cannabis products—told Reason.

"I think that's sort of a funny thing everybody talks about green rush, but the challenges in this market are real," he said. "You have to be very smart and thoughtful when entering the market."

The majority of state regulations are focused on ensuring pot ads don't intentionally or accidentally target children or those under age 21. Ads featuring cartoons, mascots, or bright colors that may drum-up a kid's interest are barred in many states. Signage near schools, the highway, or placed near locations where the audience isn't likely to be adults are often banned.

Some regulations are even more burdensome. For example, Massachusetts is preparing to unveil its new laws regarding marijuana branding, following its legalization of recreational use. According to O'Shaughnessy, the state has chosen to ban logos that have the leaf in it as well as brands that contain "colloquial references to the leaf, which includes 1200 plus terms."

"A great brand that has a lot of recognition may have trouble entering Massachusetts with a brand image that they've spent two years conceiving of and rolling it out," he said.

Investing in a brand takes a considerable amount of time and money. According to Forbes, building a brand strategy can cost hundreds of thousands of dollars when adding in research, design, and focus group costs. Regulations such as the ones in Massachusetts make investment more risky, as brands become less transferable from state-to-state, driving up company costs and making market entry challenging for smaller firms.

"With respect to packaging, we are talking about not a small investment, so you don't want to find suddenly that you have a market that opens up wherein you can't market your packaging," said O'Shaughnessy.

Dr. Alex Masowski, the Chief Scientist at Sage Analytics, an industry leading supplier of in-house testing equipment for cannabis, says that "companies are looking at a moving target" when considering regulations.

"All of these companies would hope to exist in multiple states, and there is a cost and a waste associated with having different marketing or packaging of the same products across state lines," Masowski told Reason.

Aside from dealing with confusing and disparate state-by-state regulations, cannabis companies are essentially barred from using Facebook and Google ad platforms—two of the largest and most profitable digital ad platforms—to promote their products. As federal law considers pot a Schedule 1 drug, it cannot be advertised on a federal level. While Facebook may seem like the ideal place for cannabis firms to target ads to specific demographics, companies cannot use it.

"You can't post pictures of buds," said O'Shaughnessy. "You can't post pictures of selfies of a bong hit. But you also cannot say things like 'I've been struggling with cancer and this has brought be great relief and here's what worked for me.' You can't list medications that have been effective."

Facebook's ad policy does not allow posts that promote the sale or use of illegal, recreational drugs, or prescription drugs. Facebook's updated community standards bars posts that "mentions or depicts marijuana or pharmaceutical drugs." Even expressing an interest in buying substances can get a post flagged. Facebook also places marijuana provisions under the "Violence and Criminal Behavior" heading, despite the substance being legal in a number of areas.

When posts are flagged online, they are temporarily taken down until the report is reviewed by Facebook. If the post does violate Facebook's Community Standards or ad policy, it will be removed. This can pose problems for firms trying to reach their customers. Some firms could even unnecessarily flag competitors posts just to be malicious.

Reason spoke to a Facebook representative on background to get some clarity about the appeals process. Advertising policies on Facebook are more stringent than the community standards, so in addition to having to comply with Facebook's community standards guidelines, ads must face additional restrictions. Ads are reviewed by Facebook Teams before going online. If they don't get approved, companies can appeal. If they are reported afterwards for violating community standards, groups can also appeal the claim. Appeals typically take 24 hours.

Without the largest internet platforms to boost their digital strategy, cannabis companies must get creative when targeting their customers. Many firms rely on good-old-fashioned journalism and public relations to spark word of mouth interest in their products. High Times, Vice, and other networks that are dedicated to consumer journalism are helpful. Meet-up services like Eventbrite that allow firms to promote events that feature their products and bring in industry speakers to talk about relevant topics can be successful.

"With Facebook and social media specifically, look to people who are influencers," said O'Shaughnessy. "How can you get them excited and talking about what you're doing? Have events that people can go to and encourage a hashtag strategy or sharing photos of the event."

Editor's Note: We invite comments and request that they be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of Reason.com or Reason Foundation. We reserve the right to delete any comment for any reason at any time. Report abuses.

  • Jerryskids||

    Can you do a news story of weed companies not being allowed to advertise with lots of helpful illustrations of what their advertisements might look like if they were allowed to advertise? Seems to me you might have enough material there for a weekly series, in fact. Assuming weed companies were willing to underwrite the cost of producing your news magazine with their helpful illustrations of what advertisements might look like if weed advertisements were legal. Which they're not.

  • Rich||

    Ads featuring cartoons, mascots, or bright colors that may drum-up a kid's interest are barred in many states.

    Those NFL *bastards*!

  • Diane Reynolds (Paul.)||

    Facebook also places marijuana provisions under the "Violence and Criminal Behavior" heading, despite the substance being legal in a number of areas.

    The bots will eventually get this right. They're gonna get it right!

  • Dan S.||

    Have events that people can go to and encourage a hashtag strategy or sharing photos of the event.

    A hashtag that's really a HASH tag?

  • Hank Phillips||

    Cigarette ads were a big deal among teevee-addicted vidiots. But as soon as Favor nicotine sticks came out the attacks on the safer alternative took on the ferocity of a cockfight with razor spurs added. The current war on vaping is a rerun of this. Surely there is some mysticism or pseudoscience too embarrassing to mention at work here. You can search old news articles depicting nuclear energy and LSD as Horsemen of the Apocalypse, and glean how pathetically embarrassing these must be now that the laws they urged are entrenched and weaponized. But entrenched they are.

  • I'm Here, for MOAR Hihn||

    C'mon Reason: I understand the freedom your staff enjoys and no one likes to call out others for errors. But the first sentence of this article couldn't have passed the editorial desk of my high school newspaper. At least edit the interns

  • gphx||

    Weed is legal in Washington. Our little local economy is largely based on tourism of outlet malls and antique shops. Some local entrepreneurs decided they'd install some unique marijuana based shops along the main drag drawing traffic from potentially everywhere.

    Then an aged, ex-military statist started scaring everyone claiming those businesses would cause crime to skyrocket and marijuana growers would not only use up all the electricity but also buy up all the houses so locals couldn't afford them anymore. On that basis he convinced the city council to pass an ordinance requiring marijuana related businesses to be surrounded by 12 foot tall razor wire fences. Then they could simply decline to approve permits for any building with such fences and effectively make all local marijuana businesses illegal.

    When you look closely the 'law' is insanity based upon bullshit.

  • Art Gecko||

    Let's be honest: weed hasn't been legalized anywhere... it's been cartelized.

  • Skedoosker||

    As one who actively worked for years to legalize pot in Colorado, I have also always said that advertising, at least on television and radio, should be banned. Tobbaco is the most successful model. Legal, which prevents the emergence of a black market, gangs, etc. And yet let's not allow modern advertising to entice the young into potentially life long substance abuse habits.

  • painkillersman||

    We are top suppliers Marijuana, pain pills, sex pills and anxiety meds available (we have meds like xanax, tramadol, percs, oxy, roxy, valium, actavis syrup, etc... +1 (724) 470-0553. Call: +1 (419) 299-6124
    Email Us Via : discreetsales2015(@)gmail.com

  • painkillersman||

    We are top suppliers Marijuana, pain pills, sex pills and anxiety meds available (we have meds like xanax, tramadol, percs, oxy, roxy, valium, actavis syrup, etc... +1 (724) 470-0553. Call: +1 (419) 299-6124
    Email Us Via : discreetsales2015(@)gmail.com

  • painkillersman||

    We are medicine suppliers (without Prescription) Base in USA & South Africa providing a convenient way for drugs without prescription to get to your door. We also provide a better channel for legal or non-legal cannabis patients to receive their medication without leaving their home or office. Be treated like a VIP!
    We are a trusted middle-man a drop shipper and suppliers of a wide range of Pharmaceutical Formulations specializing in Pain Killers, Anti Anxiety, Weight loss, Steroids, Marijuana HGH, ADHD & ED , Research Chemicals + more that 100 different medicines. These are sourced from reliable vendors that make sure that our product range is safe.

    CONTACT US
    Be treated like a VIP! +1 (724) 470-0553
    WhatsApp # only: + 15753835081
    S.A OFFICE
    Whatsapp Number: 0027642338548 / Call Tel: 0027642338548

  • JanetMMFitch||

    I expected a big discussion. Look at the students. They stopped thinking and writing on their own. Students use resources to write fellowship www.au.papersowl.com Grass and its legalization is a step backwards. The Ministry of Education will not allow this. I will be the guarantor.

  • Garet Sethy||

    Hello guys! Look at this video https://www.youtube.com/. I think that ill be useful for you.

GET REASON MAGAZINE

Get Reason's print or digital edition before it’s posted online