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Advertising Pot Is Tough When the Feds Consider You a Drug Dealer

MedMen billboards in Los Angeles Source: MedMen

Facebook, Google and the TV networks don’t accept cannabis ads, so marijuana sellers are opening stores, holding workshops and promoting their wares on Howard Stern.

America’s cannabis companies are racing to build national brands and market their wares to mainstream consumers. There’s just one problem: It’s hard to advertise your product when the federal government considers you a drug dealer.

Facebook, which like Google prohibits marijuana ads, has kicked some weed sellers off Instagram. Earlier this month CBS declined to air a commercial touting the benefits of medical marijuana during the Super Bowl. Much the way banks are unwilling to finance cannabis startups, television networks and online advertising marketplaces are understandably cautious because the Feds still classify marijuana as a Schedule 1 drug alongside heroin and ecstasy.

With a growing number of states legalizing weed for recreational and medical purposes, the U.S. market could surge eight-fold to $80 billion in sales by 2030, according to Cowen & Co. But it’s hard to see that happening unless companies can market their wares the way beer and liquor companies do. After decades of prohibition, many consumers need a push to give marijuana a try.

“The public has a stigmatized view of the product but legitimate business owners can’t reach them—it creates mistrust,” says Kyle Porter, who runs CMW Media, which does marketing and public relations for cannabis companies. “We’re really limited in how we can reach customers.”

For several years, marijuana companies have considered Instagram an ideal place to build their brands. In an effort to position weed as a mainstream product, they post pictures of buds and joints and show people hiking with vape pens or relaxing on the beach with cannabis edibles. But Instagram, a Facebook property, doesn’t let weed sellers advertise. In a statement, the company said that while it allows “marijuana advocacy content,” posts promoting the sale of cannabis are verboten. Dispensaries are prohibited from providing contact information, including phone numbers and street addresses, “regardless of state or country.”

Though many weed sellers—legal and black market—continue to operate accounts on Instagram, some complain that the social-media site shuts down their accounts with little warning or explanation. Binske, a Colorado company that sells vape pens, bud and cannabis-infused chocolates made with Peruvian cacao, spent the better part of two years building up its brand on Instagram. Then in September, just a few days after the company paid Snoop Dogg $30,000 to DJ a promotional event at a Las Vegas dispensary, the account disappeared.

Concerned about losing social-media momentum, Binske vice president of business development Alex Pasternack spent two weeks submitting documents to Instagram, trying to prove his company was legit. Then, without notice, the account came back—with its more than 12,000 followers intact.

To Read The Rest Of This Article By Craig Giammona on Bloomberg

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Published: January 27, 2019

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