Getting Out of the Weeds: A How-To Guide for Compliant Cannabis Online Advertising

Key Insights

• Cannabis brands have access to far more programmatic advertising channels than most operators realize - in-app, mobile web, desktop, connected TV, and streaming services are all available to cannabis advertisers, giving the industry a broader digital footprint than the Facebook and Instagram restrictions would suggest.
• Connected TV advertising costs approximately four times more than standard display on a CPM basis, but delivers a 96 percent view rate - compared to being one of twenty or more ads competing for attention on a single display page - making CTV a meaningfully more premium and high-attention format for cannabis brands focused on awareness.
• Cannabis brands can run demographic and gender targeting on programmatic channels even without access to Facebook and Instagram, which is a common misconception: the absence of social platform access does not mean an absence of audience targeting options in the broader programmatic ecosystem.
• CPM pricing in programmatic advertising is set by the market, not by the platform operator, so the strategic question for cannabis brands is not how to get a lower CPM but how to select the format and audience targeting combination that delivers the most value at any given budget level.
• Setting a clear campaign goal before launching programmatic advertising is the step most cannabis brands skip - defining what a partnership goal is, what the actual campaign strategy will achieve, and what success looks like before spend begins is what separates measurable programmatic campaigns from budget that disappears without clear attribution.

Webinar Highlights

00:00 – What Programmatic Advertising Actually Means for Cannabis

Jake Wicke, Ted Montanus, and Stan Longwood open with a foundational discussion on terminology: the cannabis industry tends to default to "display" when it means programmatic, but the category has expanded significantly to include in-app, mobile web, desktop, CTV, and streaming. The conversation sets up why understanding the full scope of available channels is the starting point for any serious cannabis advertising strategy.

06:00 – Why Cannabis Brands Underestimate Their Channel Options

A recurring insight throughout the conversation is that cannabis operators often assume their advertising options are severely limited because of restrictions on Facebook, Instagram, and Google. The panel pushes back on this assumption: programmatic channels provide access to a wide inventory ecosystem with demographic targeting - including gender - that is fully available to cannabis advertisers willing to move beyond the social platform mindset.

12:00 – Display vs. CTV: Understanding the CPM and Value Trade-Off

The panel breaks down the pricing and performance difference between standard display and connected TV video. CTV video costs roughly four times more per thousand impressions than display, but delivers a 96 percent view rate - the ad is seen, not scrolled past or ignored in a cluttered page environment. For cannabis brands with awareness goals and budget that allows for it, the conversation frames CTV as a premium channel whose higher cost reflects a meaningfully higher attention value.

18:00 – How Market Pricing Works in Programmatic Cannabis Advertising

The panel addresses CPM pricing directly: rates are set by market dynamics, not by platform operators. Cannabis brands that fixate on getting a lower CPM are asking the wrong question. The right question is which combination of format, targeting, and inventory delivers the most campaign value at whatever budget is available - whether that is a thousand dollars or ten thousand dollars.

24:00 – Contextual Targeting: Why Context Is as Important as Content

The discussion covers contextual advertising as a particularly strong fit for cannabis brands, because it places ads adjacent to relevant content environments rather than relying on behavioral or cookie-based targeting. In an environment where cannabis brands face heightened platform scrutiny, contextual targeting provides brand-safe placement that aligns ad delivery with the moments when cannabis consumers are most receptive to the message.

30:00 – Starting With the Right Campaign Goal

Stan Longwood closes with what the panel identifies as the most commonly skipped step in cannabis programmatic advertising: defining the actual campaign goal before launch. What is the partnership goal? What is the campaign supposed to accomplish? What does success look like? These questions, answered clearly before spend begins, are what make the difference between a programmatic campaign that produces measurable results and one that simply consumes budget.

Frequently Asked Questions

[ {What is programmatic advertising for cannabis?}

Programmatic advertising for cannabis is the use of automated, data-driven platforms to buy and place digital ads across a range of inventory channels - including in-app, mobile web, desktop, connected TV, and streaming services. Unlike paid social advertising, which restricts cannabis on platforms like Facebook and Instagram, programmatic channels are broadly accessible to cannabis brands and support demographic targeting, contextual placement, and performance measurement across a much wider ecosystem of digital environments.

{Can cannabis brands run demographic targeting in programmatic advertising?}

Yes. Cannabis brands can run demographic targeting - including age, gender, and geographic filters - through programmatic channels even without access to Facebook and Instagram. The assumption that social platform restrictions eliminate demographic targeting options is a common misconception. Programmatic DSPs provide audience segmentation capabilities that cannabis advertisers can use directly, without relying on social platforms.

{What is the difference between display and CTV advertising for cannabis?}

Display advertising places static or animated ads across websites and apps at a lower CPM. Connected TV advertising places video ads within streaming content at approximately four times the CPM of display, but delivers a 96 percent view rate - meaning the ad is actually seen rather than appearing in a cluttered page environment where attention is divided. For cannabis brands with awareness objectives and adequate budget, CTV provides a higher-attention format that justifies its premium cost.

{How does CPM pricing work in cannabis programmatic advertising?}

CPM (cost per thousand impressions) in programmatic advertising is set by market supply and demand, not by individual platform operators. Cannabis brands cannot negotiate a lower market rate, but they can choose which format, targeting combination, and inventory type delivers the most value within their budget. A higher CPM in CTV or premium display reflects higher-quality inventory and audience attention, not arbitrary markup.

{What is contextual advertising and why does it matter for cannabis brands?}

Contextual advertising places ads adjacent to content that is topically relevant to the ad - cannabis wellness content, lifestyle publishing, or related consumer interests - rather than relying on behavioral tracking or third-party cookies. For cannabis brands, contextual targeting is particularly useful because it achieves relevant audience delivery in a brand-safe environment without depending on the behavioral data infrastructure that is increasingly restricted by privacy regulations and platform policies.

{What should cannabis brands do before launching a programmatic campaign?}

Before launching a programmatic campaign, cannabis brands should clearly define the campaign goal: what the campaign is meant to accomplish, what a successful outcome looks like, and how performance will be measured. Most programmatic campaign failures trace back to unclear objectives set before launch rather than poor execution during the campaign. Defining the partnership goal and campaign strategy upfront is the foundation for any programmatic spend that produces attributable results. ]