Canada was the first G7 country to legalize the recreational use of cannabis at the federal level. It presented a lot of opportunities for the multibillion-dollar industry to increase its annual revenue from cannabis products and accessories.
However, the Cannabis Act has placed several restrictions for marketing and advertising marijuana products in the Canadian market. It has narrowed down the marketing opportunities for businesses that sell cannabis products in brick-and-mortar stores or on the Internet.
The regulations surrounding the legalization of recreational marijuana are similar to the ones set forth by Tobacco and Vaping Products Act. According to the Cannabis Act and Health Canada guidelines, the cannabis packaging should have a single uniform color outside with a statutory health warning.
The outside packaging should not display any images related to brandings or company logos. There are several other restrictions for marketing cannabis products, such as:
- It should not seem appealing or enticing to the youth.
- It should not provide false or misleading information.
- It should not contain any sponsorships, recommendations, or endorsements.
- It should not depict an individual, character, or animal promoting the use of cannabis or related products.
Due to these restrictions put forth by the Cannabis Act and Health Canada, marketing cannabis products is quite challenging. Moreover, sellers cannot use Google ads, social media ads, or any other platforms, that can be accessed by the youth. That is why it has become essential for sellers and marketers to get creative with promoting cannabis products.
Search Engine Optimization (SEO)
While cannabis sellers and marketers cannot run page google ads, they can use SEO techniques to increase website ranking on search engines. They can fully optimize their websites to generate organic traffic and maximize their conversions.
Let us imagine that a potential cannabis consumer is using Google to search for the best cannabis brands in Canada. One of the websites from the top search results will probably get the business from the consumer. That is why sellers and marketers are finding creative ways to boost cannabis SEO in Canada.
Many e-commerce sellers cannot market their products through brick and mortar stores. For them, dominating the search engine rankings can prove to be an invaluable asset.
Organic Social Media Marketing
The cannabis industry cannot place any paid advertisement on social media. However, that does not mean that they are completely banned from using social media channels. Most social media platforms already have the necessary age restrictions in place.
Sellers and marketers can engage in intelligent conversations with potential customers using social media channels like Facebook groups. Even though they cannot show any images related to their cannabis products on Facebook, they can participate in conversations to talk about their brand’s characteristics, marijuana strains, THC, CBD, and prices in an informative and educational intent.
AR Marketing
Augmented reality and virtual reality have gained immense popularity recently for marketing products and services. The technology can be used in many ways to provide unique marketing experiences for better brand placement.
For example, when customers buy a cannabis product, it would have statutory exteriors with a uniform color and health warning. However, when they scan the product with a smartphone, they will see several other branding elements on the packaging.
They could view additional information about the brand, its list of products, or access a promotional video that shows recipes using the cannabis products. Some Canadian agricultural technology companies have declared interest in developing AR-enhanced packaging that can be used by producers and retailers from the cannabis industry.
The technology will also place restrictions that would not allow underage individuals to view the AR futures.
Listings and Reviews
The law clearly states that cannabis producers and sellers cannot use reviews to promote their brands. However, it is necessary to create accurate listing information and have positive reviews on the listing platforms. The brand's SEO and social media efforts could go down the drain if a user discovers that the brand has a low star rating.
The consumer would prefer using one of their competitors with higher star ratings for their business. That is why it is necessary to maintain good reviews on listing platforms.
There are several distinct platforms in Canada these days that deal exclusively with cannabis producers and sellers. Most consumers are also aware of these platforms and use them to discover merchants that sell cannabis and related products.
Educating Consumers
Surveys have shown that a large chunk of marijuana users still prefer illegal ways to purchase products. The primary reason behind this is a lack of education. Health Canada has imposed restrictions related to educating people regarding marijuana and related products.
But producers and sellers can use this opportunity to educate their customers and encourage them to purchase from legal cannabis sellers. Education regarding cannabis is also essential to dispose of the existing stigma around recreational uses.
Cannabis producers and sellers can hold sessions like yoga classes for cannabis users to educate them. They can also use old-school methods like community involvement to share news or education related to cannabis products.
Legal cannabis businesses are opening all over the country. But new sellers and marketers must understand the marketing restrictions and recognize the opportunities. It will allow the producers and sellers to increase the revenue and popularise their brand.
However, readers should note that the article only presents our views regarding the matter. Our opinions and suggestions should not be considered legal advice. Sellers should consult legal advisers or professional marketers to understand the legality of any marketing avenues they plan to use.