Several questions arise regarding cannabis product advertising and marketing. Being prepared for South Africa’s legislative changes will ensure a smoother transition into the industry.
With the imminent legalisation of cannabis in South Africa, the focus is shifting towards cannabis consumption regulation and its marketing.
Understanding different forms of consumption
Cannabis consumption varies, but smoking remains the most prevalent method. As regulations evolve, different forms of consumption will likely come with varying levels of marketing regulation. Drawing a parallel with nicotine, South Africa regulates the marketing of nicotine products based on the method of consumption. Marketers must understand the health and legal implications of different cannabis products for effective marketing.
Mitigating risks and ensuring economic benefits
Marketers must consider potential risks to the formal trade of cannabis products. The tobacco industry’s struggle with the illicit trade of Duty Not Paid (DNP) cigarettes provides a cautionary tale, highlighting the negative impact on tax revenue. Building cannabis brands that appeal to consumers while avoiding illicit trade will be crucial. The concurrent development of distribution, pricing, and brand-building strategies will ensure long-term success.
Industry expansion and corporate involvement
As the cannabis industry gains momentum, big corporations in tobacco, alcohol, and pharmaceuticals are likely to enter the market. Developing brands and products that use cannabis to expand their existing product portfolios would provide significant economic opportunity. Moreover, other sectors may tap into the potential of cannabidiol (CBD). The versatility of cannabis as a raw material presents various industries with the opportunity to extend their product lines and explore sustainable alternatives.
Advertising and marketing considerations
Several questions arise regarding cannabis product advertising and marketing:
Differentiation between THC and CBD products:
THC and CBD products may have different limitations on promotional activities. Understanding these restrictions will be crucial to target audiences effectively.
Regulatory comparisons
The rules surrounding cannabis product advertising may draw parallels with those governing alcohol, tobacco, pharmaceuticals and sugar. Similarities in regulations and restrictions can provide insights into potential advertising frameworks.
Advertising landscape
Agencies with experience in marketing regulated brands will have the upper hand when it comes to navigating the advertising landscape of the cannabis industry. Examining successful campaigns, regulatory challenges, and past experiences for other regulated brands provides insight for shaping effective strategies. Social media platforms play a significant role in brand promotion, but strict limitations on cannabis advertising exist.
Marketers must evaluate social media restrictions and explore (as well as invent) alternative channels and creative techniques. By combining these assessments, marketers can develop informed strategies that reach the target audience while adhering to regulations. Successful cannabis marketing requires creativity, compliance, and adaptability.
Research and preparedness
Conducting thorough research on cannabis marketing regulations and staying up-to-date with the evolving legislation is crucial for businesses planning to enter the cannabis market. Being prepared for this legislation will ensure a smoother transition into the industry.
Summary
As South Africa approaches the legalisation of cannabis, marketers must anticipate the regulatory challenges and opportunities that lie ahead. Navigating the advertising and marketing landscape for different cannabis products will require a comprehensive understanding of the regulations, risks, and market demands. By staying informed, businesses can position themselves for success in this burgeoning industry.
Matthew van der Valk is executive creative director at advertising agency, VMLY&R South Africa.
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