Why cannabis brands should invest in programmatic advertising

With some of the most popular digital advertising platforms for cannabis brands and companies locked down, programmatic advertising offers an affordable way to reach audiences at scale.

What is programmatic advertising?

In its simplest terms, programmatic advertising automates the process of buying and selling online advertising, but there’s actually a lot more to it. First, programmatic advertising brings together web publishers with ad space for sale and digital advertisers. Instead of using numerous tools and processes to buy ad space across multiple channels to reach their audiences, advertisers can automate the process using a single programmatic platform.

Second, programmatic advertising streamlines the ad buying process. Using artificial intelligence and machine learning, programmatic platforms buy the right ad placements at the right time and at the best price through an auction system.

Third, programmatic advertising optimizes advertising budgets. Again, programmatic platforms use artificial intelligence and machine learning to bid on ad space in real-time, and advertisers get the most effective placements and prices. Instead of a team of marketers managing the process, everything is automated.

The automated process involves numerous steps, but everything happens instantly. Here’s a basic breakdown of the process that goes on behind the scenes to display a programmatic ad on a website:

• A person lands on a publisher’s website.
• The publisher’s ad space (ie, impression) is auctioned off through the programmatic network.
• Advertisers bid for the ad space (ie the impression). This is done automatically by algorithms and data, so each advertiser’s bid is the most cost-effective for them.
• The highest bidder wins the seat.
• The ad will appear on the website where the original visitor can see it.
• The visitor clicks on the ad. At least that’s what advertisers and publishers hope.

When the visitor clicks on the ad, the advertiser has an opportunity to convert them into a customer and the publisher earns advertising revenue. Remember, all of this is happening faster than you can blink.

What are programmatic advertising channels?

There are several programmatic advertising channels that advertisers can use to serve their ads. Each channel gives you the opportunity to reach your target audience where they already spend time.

Show ads

Digital display ads are image or banner ads as people see them on websites, social media platforms, search engine results pages, and more. Display ads are the most popular programmatic advertising channel today.

Native Ads

Native ads are created to look like they are part of the web page they are placed on. They can contain images, text, and call-to-action buttons. They’re often found at the top of webpages, at the bottom of articles or blog posts, and other places where they blend into the content of the page.

Mobile Ads

Mobile advertising is very effective when it comes to targeting people based on their current location through geofencing. Advertisers can also target in creative ways, e.g. B. for downloaded apps. This includes cannabis-related apps (e.g. Eaze or Weedmaps).

Digital audio displays

Digital audio ads are expected to become more common in the future as digital audio streaming becomes more popular. Advertisers like audio ads because their ad is the only one that plays when a listener hears it. This means there is no competition for the audience’s attention.

Connected TV Ads

Because connected TV ads are not regulated in the same way as broadcast TV ads, they present a unique opportunity for cannabis brands. Like digital audio ads, connected TV ads are shown to a highly engaged audience without any other distractions.

Digital Out of Home (DOOH) ads

Digital billboards are just one example of how programmatic advertising has moved from homes and personal devices into consumer environments. This is a growing programmatic advertising channel that is likely to become more popular in the future.

How cannabis brands can benefit from programmatic advertising

Cannabis and sideline businesses can use programmatic advertising to grow their brands and drive sales to almost any audience. Some of the key benefits of programmatic advertising are:

Advanced Targeting

Programmatic advertising offers superior targeting opportunities to help you find your niche audience where they spend time. Targeting by device, real-time location, demographics, interests, and behaviors are just some of the ways you can find the exact audience you want to connect with your brand.

Extended range

With the tools provided by programmatic advertising platforms, you can find different ways to advertise in a methodical and strategic way and reach new audiences. The advanced algorithms built into some of these platforms also help you find lookalike audiences to expand your reach even further.

Increased efficiency of ad management

With all of your ad buying, tracking, targeting, and other management activities consolidated on a single programmatic advertising platform, you save time on all the tasks associated with strategizing, implementing, and tracking your advertising plan.

Improved tracking

With programmatic advertising, you can go beyond click-through rate to better understand who is interacting with your ads. This advanced data can help you design effective retargeting campaigns, A/B split tests, and more. You can also combine data from your programmatic ads with data from your website and social media accounts to learn more about a prospect’s journey.

More effective budget and profit optimization

The algorithms used to place programmatic ad bids use extensive analytics to make the most effective use of your ad budget. You get access to the best ad placements for your budget that should deliver the highest return on investment.

How to get started with programmatic advertising

There are many websites where cannabis and cannabis-related businesses can advertise, but finding them can be difficult. Luckily, there are a number of platforms and tools that allow cannabis brands and some that only work with cannabis brands. Below are popular platforms to get you started:

mantis

Mantis is a cannabis ad network that offers programmatic advertising for cannabis and CBD brands. It has a large list of publishers, including cannabis websites like Leafly, Marijuana Business Daily, MedicalJane, WikiLeaf, and Grasscity Forums, as well as mainstream websites like The Food Network, HGTV, and Travel Channel.

traffic roots

Traffic Roots is a programmatic marketplace for cannabis brands, offering programmatic placements for display, pre-roll and post-roll video, mobile, and banner advertising. Traffic Roots has more than 160,000 mainstream publishers in its network, as well as many cannabis-specific websites. Funded by Canopy Boulder, Traffic Roots is well known in the industry.

Key takeaways on programmatic advertising for cannabis brands

Programmatic advertising is a viable option for cannabis and cannabis-related businesses. There are several established programmatic ad networks serving cannabis industry ads, as well as several programmatic ad networks serving the cannabis industry.

Publishers like Newsweek, USA Today, and ESPN are already allowing programmatic cannabis-related ad buys on their digital sites, and a growing number of mainstream publishers are joining the list. Now is the time for cannabis brands to invest in programmatic ads.