Last month, Twitter updated its advertising policy to allow cannabis ads in states where it is legal, drawing the attention of many cannabis brands. Renowned brands like Kiva (THC-infused edibles), Cann (cannabis drinks), and Curaleaf (marijuana dispensary) are now exploring Twitter ads. Denver-based CBDistillery became the first CBD brand to launch cannabis ads on Twitter. These brands see Twitter as a platform to reach a wider audience and educate consumers about cannabis.
Organic Marketing and Past Challenges
Before Twitter's ban on cannabis ads was lifted, brands relied on organic marketing on platforms like Instagram, TikTok, and Facebook. However, advertising cannabis products was difficult. For example, Meta's platforms allow hemp ads but with strict geographic and content restrictions, excluding products containing THC or CBD. TikTok is also limiting drug-related public service ads despite legalization in some states.
Twitter Ad Requirements
To advertise on Twitter, cannabis businesses need to be pre-licensed, licensed, and only target legal jurisdictions. Ads cannot make health claims or show the use of cannabis.
Brand Strategies and Spending
Kiva's e-commerce director, Aaron Rivadeneyra, highlights their strong organic presence, especially on Instagram. Kiva avoids direct sales marketing. Ashley Fields, SVP of Marketing at Cann, observed a shift in 2021 toward alternatives to alcohol, especially among Generation Z. Cann is using celebrities like Gwyneth Paltrow and Kate Hudson to broaden its reach.
Twitter is offering an advertising incentive, corresponding to new ad spend of up to $250,000 through March 31. Cann plans to invest $25,000 to test the platform. Kiva plans to allocate 30% of its advertising budget to Twitter, having quadrupled its digital budget. Curaleaf also plans to spend more than usual to get familiar with the platform.
Balanced Health Botanicals, spending $12,500 per month on Twitter, will increase its efforts if the return on investment is positive.
Navigate the Regulations
Cannabis advertising regulations vary by state, requiring brands to adapt their strategies. For example, ads in Massachusetts require detailed mentions, while California does not. Kate Lynch, EVP of Marketing at Curaleaf, highlights the importance of adaptability.
The CEO of Balanced Health Botanicals, Chase Terwilliger, notes the strict process for approving ads by Twitter, ensuring compliance with their policies.
The Importance of Twitter's Decision on CBD & Cannabis
Prophet's Jay Milliken points out that Twitter's policy change is a potential source of revenue as ad revenue falls after Elon Musk took over. While unlikely to replace lost revenue, this offers a new marketing channel for cannabis brands. Twitter allows for authentic customer interactions that are beneficial for brand development.
For many, Twitter's decision signals a growing acceptance of cannabis, with the hope that other platforms will follow suit.
“We aim to lead the industry by doing the right thing,” says Terwilliger.
