The marketing industry is helping cannabis companies realise their potential
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Special Report: The rapidly growing cannabis and CBD sectors are turning to the marketing industry to help them realise their potential, says Domenic Carosa, CEO of global media and marketing company Crowd Media.
Spurred by growing support for legalisation around the world, the legal cannabis market is expected to be worth nearly $98 billion by 2025, growing at a compound annual growth rate of 24 per cent over that time, according to Grand View Research.
That represents a huge opportunity for makers of medicinal cannabis and legal recreational cannabis, as well as CBD products such as oils, but marketing experts say they will need to be skilled at promoting their products if they are to succeed.
Crowd Media (ASX:CM8) boss Carosa says the advertising landscape has changed dramatically in the last decade. “Going back 10 years ago, online advertising was an important part of the mix. Now it and social media are the main parts of the marketing mix,” he tells Stockhead.
“Particularly for a millennial audience, which has shifted from traditional media like television, print and radio to online and social media platforms.
“For cannabis companies that harness this correctly, as their space continues to grow, it can create powerful growth opportunities.”
Crowd Media recently signed its first client in the sector in large Australian cannabis company Elixinol (ASX:EXL).
Crowd helped Elixinol acquire new customers for its organic hemp oil products via its proven digital influencer strategy. engage:BDR (ASX:EN1) is another Australian advertising company offering marketing solutions for cannabis companies.
“We are mostly interested in delivering sales for our customers,” Carosa says. “Building the brand is an important part of what we do but ultimately we want to make sure our clients are getting strong returns on their investment.
“We are helping them find the right influencers and the right marketing, at the right time and in the right places, for their products.
“And that is thanks to our hard work over the past 10 years building out our proven strategy and technology.”