01

Google Search begins with expressed demand. Someone types the query.

Programmatic advertising can reach the buyer before that moment, while the company is still building familiarity or earning consideration.

For cannabis ecommerce and retail, I tend to use programmatic first for awareness, qualified traffic, retargeting and demand support.

Sales and ROAS still matter. The mistake is expecting an awareness impression to behave exactly like a bottom-of-funnel search click.

A customer might see an ad, visit later through organic search and purchase after another interaction. Attribution needs to be good enough to see more of that journey than the last click.

  1. awareness
  2. qualified traffic
  3. retargeting
  4. demand support

expressed demand

Programmatic Has a Different Job From Paid Search. expressed demand. awareness. qualified traffic. retargeting. demand support.
Programmatic Has a Different Job From Paid Search. expressed demand. awareness. qualified traffic. retargeting. demand support.

02

Access to the Right Inventory Is Part of the Service

This is one of the places where cannabis advertising differs materially from ordinary display buying.

The media has to be able to run.

That requires appropriate inventory, geographic controls, audience controls and technology that can support a regulated category.

Through specialist ad-tech and media partners, a programmatic campaign may be able to access mainstream and cannabis-appropriate inventory across formats such as display, native, online video or CTV, depending on the market and campaign.

Industry platforms also offer capabilities such as approved premium inventory, reach/frequency management, audience data and impression-to-sale attribution.

Those capabilities matter to a cannabis advertiser.

DankRank's role is to make sure the technology is being used for a strategy that makes sense.

  1. display
  2. native
  3. online video
  4. CTV
  • appropriate inventory
  • geographic controls
  • audience controls
  • technology that can support a regulated category

Campaign availability and requirements have to be reviewed for the actual business, product, location and media environment.

The media environments a cannabis campaign may be able to run in through specialist partners: display, native, online video or CTV. Each requires appropriate inventory, geographic controls, audience controls and technology that can support a regulated category. Campaign availability and requirements have to be reviewed for the actual business, product, location and media environment.

03

Targeting Has to Be More Than a Feature List

The programmatic work I've been involved with has used:

  • geographic targeting;
  • audience segments;
  • contextual targeting;
  • retargeting;
  • lookalike audiences;
  • device targeting;
  • competitor data;
  • competitor-customer targeting.

The platform may offer all of these at once. That does not mean the campaign should use all of them at once.

We want to know what each audience is supposed to accomplish and whether the reporting will let us tell the difference.

Prospecting, retargeting and competitor audiences can behave very differently. Combining them into one impressive-looking total makes optimization harder.

  1. geographic targeting
  2. audience segments
  3. contextual targeting
  4. retargeting
  5. lookalike audiences
  6. device targeting
  7. competitor data
  8. competitor-customer targeting

The platform may offer all of these at once. That does not mean the campaign should use all of them at once.

Eight programmatic targeting controls available at once: geographic targeting, audience segments, contextual targeting, retargeting, lookalike audiences, device targeting, competitor data and competitor-customer targeting. The platform may offer all of these at once. That does not mean the campaign should use all of them at once.

04

Start With a Market You Can Learn From

Programmatic can absorb budget quickly.

I prefer to scale the campaign in the other direction.

Choose an initial geography and audience that can produce a useful signal. Establish tracking. Watch the economics. Expand when the data justifies expanding.

That approach applies to geography as much as budget.

An ecommerce business may have a large legal sales footprint but still discover that certain regions perform materially better. A dispensary may only care about realistic local trade areas.

Broad reach is valuable after we understand what the broader reach is buying.

  1. an initial geography
  2. Establish tracking
  3. Watch the economics
  4. Expand
Start With a Market You Can Learn From. an initial geography. Establish tracking. Watch the economics. Expand.
Start With a Market You Can Learn From. an initial geography. Establish tracking. Watch the economics. Expand.

05

ROAS and CPA Tell Us More Than CTR

CTR has a role in campaign analysis.

It can identify creative that attracts attention or placements that generate interaction.

But a high CTR with weak conversion economics is still weak advertising.

For ecommerce campaigns, I care much more about how the spend relates to revenue and acquisition cost.

That means looking at ROAS and CPA, then examining what created the change: geography, audience composition, prospecting versus retargeting, creative, spend level, repeat customers or something else in the buyer journey.

Reporting should help us decide where the next dollar goes.

  1. CTR
  2. ROAS
  3. CPA

weak advertising

ROAS and CPA Tell Us More Than CTR. weak advertising. CTR. ROAS. CPA.
ROAS and CPA Tell Us More Than CTR. weak advertising. CTR. ROAS. CPA.

06

Lifetime Value Can Change What a "Good CPA" Looks Like

Cannabis ecommerce often includes repeat purchasing.

A customer who costs more to acquire may still be the better customer if that person buys repeatedly. A cheap first conversion can be less attractive if the customer never returns.

That is why new-customer CPA cannot always be evaluated in isolation.

Where the data supports it, we also want to understand repeat purchasing and lifetime value.

The advertising platform does not get to define customer value for the business.

  1. A cheap first conversion
  2. new-customer CPA

lifetime value

Lifetime Value Can Change What a "Good CPA" Looks Like. lifetime value. A cheap first conversion. new-customer CPA.
Lifetime Value Can Change What a "Good CPA" Looks Like. lifetime value. A cheap first conversion. new-customer CPA.

07

Retargeting Needs to Be Separated From Prospecting

Someone who visited yesterday already knows more about the company than someone who has never heard of it.

Their conversion rates should not be blended together and presented as one audience story.

Retargeting can be extremely useful for bringing interested visitors back.

Prospecting has the harder job of introducing the business.

Separating those audiences in strategy and reporting makes it easier to see whether the campaign is actually creating new demand or simply harvesting people who were already close to buying.

one audience story

  1. Retargeting
  2. Prospecting
Retargeting Needs to Be Separated From Prospecting. one audience story. Retargeting. Prospecting.
Retargeting Needs to Be Separated From Prospecting. one audience story. Retargeting. Prospecting.

08

Competitor Audiences Can Be Useful, but There Has to Be a Reason

Competitor data can help identify overlapping customers, market behaviour and audiences that may be worth testing.

I've used competitor intelligence and competitor-customer targeting as part of cannabis programmatic strategy.

The useful question is what that audience is expected to prove.

If competitor targeting produces qualified traffic or better economics, scale it appropriately. If it exists mainly because the platform offers a clever-sounding audience, it probably does not deserve budget.

  1. overlapping customers
  2. market behaviour
  3. competitor-customer targeting
Competitor Audiences Can Be Useful, but There Has to Be a Reason. what that audience is expected to prove. overlapping customers. market behaviour. competitor-customer targeting.
Competitor Audiences Can Be Useful, but There Has to Be a Reason. what that audience is expected to prove. overlapping customers. market behaviour. competitor-customer targeting.

09

Compliance Is Infrastructure, Not a Marketing Claim

Cannabis programmatic advertising still has jurisdiction, age, creative, landing-page and inventory requirements.

Specialist technology can make those constraints more manageable through approved inventory, geo controls, audience data and other campaign safeguards.

We do not call programmatic "universally compliant."

Campaign availability and requirements have to be reviewed for the actual business, product, location and media environment.

The advantage is having more purpose-built infrastructure available than trying to force a cannabis campaign through a general platform that does not support the category.

  1. jurisdiction
  2. age
  3. creative
  4. landing-page
  5. inventory requirements
Compliance Is Infrastructure, Not a Marketing Claim. Campaign availability. jurisdiction. age. creative. landing-page. inventory requirements.
Compliance Is Infrastructure, Not a Marketing Claim. Campaign availability. jurisdiction. age. creative. landing-page. inventory requirements.

10

When a cannabis company is eligible for Google Search advertising, paid search can be extremely useful because the customer is already expressing intent.

Programmatic reaches farther up the decision process.

That makes the two channels complementary in some accounts rather than substitutes.

If your main question is whether the business can capture high-intent Google searches, see Cannabis Google Ads.

If the job is building reach, retargeting site visitors, developing audiences and creating measurable demand outside the search results, this is the service for that problem.

  1. active intent
  2. reach
  3. awareness
  4. audience development

complementary

Google Ads and Cannabis Programmatic Solve Different Problems. complementary. active intent. reach. awareness. audience development.
Google Ads and Cannabis Programmatic Solve Different Problems. complementary. active intent. reach. awareness. audience development.

11

What the Technology Layer Should Give the Client

There is more to a strong programmatic setup than access to banner placements.

Depending on the partner and campaign, useful infrastructure can include:

  • large pools of cannabis-appropriate and mainstream inventory;
  • category-approved premium media deals;
  • age and geographic controls;
  • audience onboarding and segmentation;
  • frequency management;
  • retargeting and lookalike capabilities;
  • cross-device measurement;
  • ecommerce or POS attribution;
  • impression-to-purchase analysis;
  • reporting that connects media exposure to revenue.

Some specialist platforms use proprietary identity or attribution technology to provide these capabilities.

DankRank does not claim to own those technologies.

We select and work with specialist infrastructure where it benefits the campaign, then apply strategy, budgeting, analysis and reporting around it.

For the client, the important question is whether the stack can reach the audience, run appropriately for the category and show enough of the commercial result to make better decisions.

  1. age and geographic controls
  2. audience onboarding and segmentation
  3. frequency management
  4. cross-device measurement
  5. impression-to-purchase analysis
What the Technology Layer Should Give the Client. useful infrastructure. age and geographic controls. audience onboarding and segmentation. frequency management. cross-device measurement. impression-to-purchase analysis.
What the Technology Layer Should Give the Client. useful infrastructure. age and geographic controls. audience onboarding and segmentation. frequency management. cross-device measurement. impression-to-purchase analysis.

12

Experience Through ColaDigital

My programmatic cannabis experience was developed through ColaDigital.

My role has included selling and planning campaigns, determining budget and geography, audience strategy, some campaign management, reporting, analytics and walking clients through what the data actually meant.

That has included budgets above $80,000 per month and targeting across geography, audience segments, context, retargeting, lookalikes, device and competitor data.

ColaDigital also maintained programmatic sales-support material containing campaign examples supplied through specialist media partners.

One partner display example in that material reports 963 online orders and approximately $108,000 in revenue from roughly $13,700 in media spend, or about 8x ROAS for the measured period.

That result belongs to the partner campaign represented in ColaDigital's sales-support materials. It is not being presented as a DankRank client result.

The value of the example is narrower: cannabis display can be connected to transactions and revenue when the attribution infrastructure is in place.

  1. roughly $13,700in media spend
  2. 963online orders
  3. approximately $108,000in revenue
  4. about 8xROAS

roughly $13,700 in media spend

approximately $108,000 in revenue

That result belongs to the partner campaign represented in ColaDigital's sales-support materials. It is not being presented as a DankRank client result.

One partner display example: roughly $13,700 in media spend produced 963 online orders and approximately $108,000 in revenue, about 8x ROAS for the measured period. That result belongs to the partner campaign represented in ColaDigital's sales-support materials. It is not being presented as a DankRank client result.

13

Reporting Has to End With a Decision

A campaign report should tell the client more than what happened.

It should help determine what changes next.

If CPA rises after geography expands, we can examine whether the extra market is earning its budget. If retargeting carries most of the ROAS, we need to know whether prospecting is generating enough new demand. If returning customers materially improve the economics, that should affect how acquisition cost is interpreted.

This is where analytics becomes strategy.

The client should leave the report knowing what we learned and what we plan to do with it.

  1. what happened
  2. what changes next
  3. analytics becomes strategy
Reporting Has to End With a Decision. what happened. what changes next. analytics becomes strategy.
Reporting Has to End With a Decision. what happened. what changes next. analytics becomes strategy.

14

Start Controlled, Then Earn the Right to Scale

The right opening budget depends on audience size, geography, media costs and what the campaign needs to learn.

Too little budget can produce an inconclusive test. Too much budget can scale a poor assumption before anyone knows it is poor.

We want enough activity to evaluate the market and targeting with credible measurement.

If the economics hold, expand geography or spend.

If they do not, figure out why before buying more impressions.

  1. audience size
  2. geography
  3. media costs
  4. credible measurement
Start Controlled, Then Earn the Right to Scale. audience size. geography. media costs. credible measurement.
Start Controlled, Then Earn the Right to Scale. audience size. geography. media costs. credible measurement.

15

Programmatic Works Best as Part of a Real Acquisition System

Programmatic shouldn't sit in its own reporting box. It can show us which markets respond, which audiences deserve more attention, whether retargeting is carrying too much of the result and whether the message still works when the buyer wasn't already searching for us.

We use that evidence alongside paid search, organic demand, local visibility and the rest of the acquisition picture. Sometimes the right call is to scale the campaign. Other times the campaign is telling us to fix the landing page, change the offer or stop pushing a market that isn't responding.

Good reporting shouldn't make every channel look successful. It should make the next decision clearer.

That's why Cannabis Advertising sits alongside Cannabis SEO, Dispensary SEO and Cannabis Google Ads inside the wider Cannabis Marketing specialization.

REVIEW MY CANNABIS ADVERTISING OPPORTUNITY

  1. Cannabis Advertising
  2. the wider Cannabis Marketing specialization
Programmatic Works Best as Part of a Real Acquisition System. Cannabis Advertising. the wider Cannabis Marketing specialization.
Programmatic Works Best as Part of a Real Acquisition System. Cannabis Advertising. the wider Cannabis Marketing specialization.

16

Frequently Asked Questions

What is cannabis programmatic advertising?

Cannabis programmatic advertising uses specialist advertising technology and suitable digital inventory to buy and manage media for cannabis brands and retailers. Depending on the partner, market and campaign, that can include display, native, online video, CTV and other formats using geographic, audience, contextual and behavioural targeting.

Why does inventory access matter for cannabis advertising?

Cannabis advertisers cannot assume every mainstream exchange, publisher or platform will accept the category. Specialist programmatic partners can provide access to inventory and audience tools designed for regulated or sensitive-category advertising. The specific media available still depends on the advertiser and market.

Is programmatic advertising compliant for cannabis?

Programmatic is not automatically compliant everywhere. Legal requirements, age restrictions, geography, products, creative, landing pages, media inventory and platform policies all have to be considered before launch.

Is programmatic better than Google Ads for cannabis?

Neither channel is universally better. Google Search is designed to capture active intent where the advertiser is eligible. Programmatic is generally better suited to reach, awareness, retargeting and audience development. They can work together when both fit the business.

How should a cannabis programmatic campaign be measured?

ROAS and CPA are useful commercial measures when transaction attribution is available. Audience and geographic performance, prospecting versus retargeting, repeat purchasing and customer lifetime value can add important context. CTR can diagnose ad engagement, but it should not be treated as the primary business result.

How much should a cannabis company spend on programmatic advertising?

The starting budget depends on geography, audience size, available inventory and the amount of activity required to produce a meaningful test. The goal is to fund the campaign well enough to learn, establish measurement and then expand budget or geography when the evidence supports it.

Does DankRank own its own cannabis advertising platform?

No. DankRank provides strategy, targeting, budget management, campaign oversight, analytics and reporting while working with specialist programmatic technology and media partners where appropriate. That gives clients access to purpose-built inventory and technology without pretending the agency built infrastructure it did not build.