Cannabis

Social Media Influencers: When To Disclose

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Because of continuing conversations with colleagues, brands, and influencers, I wanted to put some guidelines together for based on the FTC’s native advertising guidelines or influencer disclosure.

The FTC has shot some arrows over the bow in the last several years regarding native advertising disclosure, including calling out Warner Bros. and Lord and Taylor.

In both cases, the brand was held liable, not the influencers or content creators, strongly signaling that it’s the brand’s responsibility to ensure disclosure. But, the FTC native advertising guidelines make it clear: ” …the FTC has taken action against other parties who helped create deceptive advertising content – for example, ad agencies and operators of affiliate advertising networks.  Everyone who participates directly or indirectly in creating or presenting native ads should make sure that ads don’t mislead consumers about their commercial nature.”

Basically, no one is off the hook.

As if by magic, the FTC slapped 45 celebrity influencers with warning letters but didn’t forget to include their agents and the brands – in total 90 letters were issued about the FTC native advertising guidelines. It’s safe to say this isn’t going away. It’s always been best practice, but if you didn’t take it seriously before, it’s time to do so now.

My view is this: disclosure and transparency are good for all.

A brand should have no shame about showcasing its products and experiences in a real life scenario. Influencers shouldn’t have shame either, because working with a brand is a badge of honor. It’s a real compliment to a community that a brand values their eyeballs. If you’re ashamed of working with a particular brand or influencer, perhaps you’re working with the wrong partner.

Often times when I have conversations about disclosure with brands and influencers, I get questions like “what if…we do….”

Whether you are a brand or an influencer, if you’re asking questions about how to get around these guidelines, you’re on the wrong track. The guidelines make it very clear: make it obvious to an uneducated viewer that there is a material relationship (basically, anything which might effect the outcome of the endorsement). Influencers are often concerned about “selling out” their community. As an influencer, if you’re making a living from your community with native advertising and you’re not disclosing those relationships, you’re REALLY selling them out.

The Edelman Trust Barometer makes it clear: trust is in crisis. 

Establishing trust and adhering to guidelines is necessary for native advertising and influencer relations to continue. If trust is eroded the FTC guidelines won’t be at fault for the collapse of social native advertising.

So here are the guidelines based on reading hundreds of pages including all of the FTC links provided below.

When do social media influencers need to disclose a relationship with a brand?

Always.

Does this apply to me?

Yes.

Why does it matter?

The FTC says it does.
Consumer trust is important to all of us. 

How do I disclose?

Make it “clear and conspicuous” and leave no doubt.

If you want to read through the FTC’s own words on this:

FTC Native Advertising Guideline Resources

.com Disclosures (2013)

Native Advertising: A Guide For Business

FTC Endorsement Guidelines: What People Are Asking (2015)

The Lord & Taylor Disclosure Case-FTC Blog (2015)

The Warner Bros Disclosure Case-FTC Blog (2015)

Enforcement Policy Statement On Deceptively Formatted Ads (2015)

 

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How to Decide When Choosing PR, Marketing or Branding Agency?

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At Avaans,  we offer those services to our clients, but sometimes we find our clients think they need one thing when what they actually need is another. So what’s the difference and when should you use each as a strategy.

In truth, your business probably needs ongoing campaigns for each of those, but breaking it down helps prioritize when choosing an agency, it helps to know which of the three disciplines (branding, PR, and, marketing) you should select the agency for. Many agencies offer services in all three categories, like Avaans, but most lead with one of the primary disciplines.

When Should I Hire a PR Agency vs. a Marketing Agency vs. a Branding Agency?

What’s the difference between marketing, branding and PR?

Branding: Building Loyalty and Affinity

When to do use it: At brand launch, product launch and throughout the brand’s existence to ensure consistency.

Many people think creating a logo is the extent of branding, but nothing could be further from the truth. brand is your company’s personality.

Branding drives the emotional response your audience has to your message and brand. Branding means having a solid understanding of your audience, their emotional triggers. Branding will touch every single thing you do in marketing and PR too. Think about your social media voice – is it sassy or supportive? That’s a branding decision.

B2B firms often think they can skip the branding step, but it’s even more important for B2B brands to invest in clear, concise, industry consistent branding.

A strong brand has a clear voice and gives their customers & clients something they can self-identify with. When your brand fits into their self-story of how they seem themselves you’ll increase affinity and loyalty. The strongest brands have simple identities that rarely change. Think: Coca-Cola (happiness), Apple (innovation) Lady Gaga (acceptance). The strongest brands also always consider their brand when making big decisions (is this consistent with our brand and our customer’s expectations of us?)

All of the below-mentioned tools will support a brand initiative, the biggest key to a branding initiative is to be sure your company has complete clarity on the audience, key messages, and the desired emotional connection. Branding initiatives may include a call to action, but most prominently elicit an emotional reaction or response.

  • Website: with an emphasis design and layout that matches desired emotional response
  • Content: whether 3rd party or branded, designed and selected to enhance brand’s status in the customer’s mind
  • Advertising: with an emphasis on “WHY” the brand is relevant rather than the “how or where”
  • Events: designed with imprint a memorable experience, or attach a brand to a memorable experience, in the customer’s mind, as opposed to a “lead retrieval” strategy

PR: Influence & Social Proof


When to use it: to create awareness, educate consumers, develop trust with stakeholders.
PR is the art of influence and raising awareness. It’s the ultimate in social proof.

In this bucket, we find tactics like:

  • Events: brand-hosted events for customers, community or likely customers
  • Word of Mouth: campaigns that get people talking about your product, brand and key message
  • Media Relations: relationship building with journalists, writers, and bloggers with an emphasis on collaboration
  • Social Media: with an emphasis on key messaging and influencing the market

In PR you may not get editorial control, so don’t count on a strong call to action, although you may get a link or product recommendation, it will rarely come with a heavy sales action. The best PR is earned PR which means it didn’t come with a quid-pro-quo and that’s part of what gives PR enhanced credibility over marketing.

It’s not as if these tactics aren’t supportive of one another (of COURSE you can get leads from PR tactics), but your brand’s maturity, customers, and community will determine your overall mix among other things.

Marketing: Driving Leads

When to use it: after your brand is established and you’ve earned some brand trust.

Acquiring leads is job number 1 for marketing. Depending on your product marketing may also be the science/artform of conversion also.

In this bucket, we find top-of-the-funnel tactics including:

DIGITAL 

  • Website: Landing pages with a strong call to action
  • Content: blogging, lead magnets designed to support the customer’s buying cycle
  • Content: Webinars
  • Social Media: with a link-building and custom content emphasis
  • Email marketing: shopping cart abandonment, new product announcements, customer campaigns and promotions
  • Digital Ads: social ads and banner ads with a strong call to action for potential customers
  • Remarketing: including shopping cart abandonment and past and current customers

IN PERSON

  • Tradeshows/Festivals
  • Seminars

When to use marketing tactics:
Use marketing when your sales people are trained and ready to follow up with leads. Training your sales people to understand the lead source and where the customer is in the decision-making funnel will help increase conversion. Notice one of the key differences between marketing and branding content is the use of a strong call to action.

Have more questions about how and when to use these tactics? Get in touch with us.

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What Cannabis Businesses Need To Learn From Consumer Brands – Fast

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The stats are in: cannabis is the next “big” economy. Cannabis sales topped $6.7B in 2016 and by 2020, California’s cannabis market alone will top that number.

Not too long ago, “marketing” to cannabis users was an easy proposition, there were a handful of publications and communities around which dedicated cannabis users gathered, they all had one thing in common: cannabis use. Despite access to cannabis, in some ways, this was the easy days because everyone who was willing to subscribe, opt-in and discuss cannabis was passionate. It was like a small, intimate club where everyone had the same password to get in.

But today’s cannabis user isn’t so easy to categorize. Because of increased availability and acceptance, today’s cannabis user is likely to view cannabis as an adjunct to their life, not a defining characteristic of their self-story. That means the vast majority of the cannabis users of today and tomorrow are only mildly interested in “cannabis culture,” instead, they want to know how cannabis is going to fit into their lives and their cultures. In short, marketing or press targeted towards “cannabis users” is like marketing to a demographic as broad as “women.”

What this means for cannabis business community is in order to execute successful cannabis marketing and PR campaigns, you need to be extremely clear on where and why and for whom your product works. If your product is a product that’s proudly stoner, that’s cool – just realize that Moms aren’t likely to relate to those marketing or public relations stories. Today’s cannabis brands need to put a stake in the ground, define their customer and be proud of how the brand fits into the customer’s life.

Get to know your target market, are they using cannabis publicly or just with close friends? Do they use cannabis to inspire creativity or to get some sleep? How old are your customers are they trendy millennials or are they nostalgic boomers?  As importantly, what are they doing when they aren’t using cannabis?

Understanding what your customer is doing when they aren’t using cannabis is critical, especially now, with advertising and media restrictions still in place.

While the new, huge cannabis market is good for business, it’s time for cannabis brands to double down on branding by being exceptionally clear about the motivations of their customers and that’s harder than it sounds.

 

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3 Cannabis Branding Tips for Businesses Preparing for Adult-Use

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Cannabis Branding Is About To Become Extremely Important To Cannabis CMOs and Founders

Adult-use marijuana is on the ballot and in the minds of thousands of people in the United States this fall. Adult-use, especially in California, because of its market size will change everything for cannabis companies. What should cannabis brands be thinking about in preparation for market expansion? As a cannabis entrepreneur, you might be so busy keeping up that you haven’t given much thought to branding.

Before we jump into our 3 tips for cannabis branding, let’s talk for a minute about what branding is (and isn’t) so we’re all on the same page.

Branding: the emotional response the consumer has to your company and products. 
Branding: the humanity of your company.
Branding:  the often difficult to define, but easy to spot feeling people get when they know whether they want to “hang around” your brand.

 

Maybe the most important question is why should you CARE? Strong brands develop customer loyalty and they sell products for premium prices. Interested?

I thought so.

You know what companies are branding masters? Alcohol and tobacco. Technology. Beverages like soda, water, and sports drinks.

Truly great brands incorporate values, voice, design, and especially the customer into their presence, whether it’s in-person, online, or in-store. Notice I did NOT say that branding is the packing and logo. Those two are important aspects of branding. Logos and packaging should not be the last thing you ever do with branding. Branding should be a cornerstone of culture, communication, and position that your customers continue to relate to.

Strong cannabis branding will be a steady platform from which you make decisions on everything from products to partnerships, hiring and marketing campaigns. Cannabis brands need to nurture and develop their brands to be ready for the expansion of adult use. This is particularly important in California where consumers expect sophisticated brands and branding.

So, regardless of where you are in your branding process, it’s never too late to consider these 3 tips for cannabis brands in the adult-use market:

 

BE REALLY CLEAR: WHO is your customer?

Many people hear this question and they immediately think of demographics. That’s fine, be clear on demographics, it will save you time and money. But dig deeper. Think about your customer’s lifestyle, their other passions, and what motivations you’ll be tapping into when they see your brand.

Are your customers proud proclaimed pot users or have they been an “in-the-closet” user for most of their adult lives? If they aren’t open cannabis users, why is that? Is it because of kids, jobs, cultural fear? The potential of adult-use is tapping into the existing cannabis user or the adult whose perception of cannabis is changing and they’re beginning to see marijuana like a craft beer. This is future of cannabis branding-it’s wide open. You can do some really powerful branding when you understand these deeper aspects of your customers.  Do 2-3 customer profiles as you would if you were writing a bio on someone, this simple exercise can give you extraordinary clarity on your customer.

The potential of adult-use is tapping into the existing cannabis user who is in the closet or the adult whose perception of cannabis is changing even though they aren’t regular marijuana users. These new to marijuana customers will gravitate towards brands that are as well-rounded and credible as the other brands they’re used to buying. This is the future of cannabis branding-it’s wide open. You can do some really powerful branding when you understand these deeper aspects of your customers.

To prepare for these different customers, do 2-3 customer profiles as you would if you were writing a bio on someone, this simple exercise can give you extraordinary clarity on your customer.

 

ASK YOURSELF: Do I really SPEAK to my customer?

Now it’s time to look at the way you speak to your customer? Depending on how you view your brand, your voice might be “friendly-let’s-hang-out” or it might be “knowledgeable advisor” “edgy-hipster” or “couch-locked stoner”. There is room for each of these voices, but not within the same brand.

Whatever your voice is, be sure it’s one that your ideal potential customer can relate to. The cannabis market is expanding beyond the traditional young person’s product and while there’s still room for that branding, the market is expanding.  Today’s marijuana user isn’t necessarily hiding from their parents, they might be hiding it from their kids. I hear a lot of cannabis entrepreneurs say that they absolutely understand their market because they are marketing to their friends. Well, that’s a great start, but the average person only has 338 Facebook friends – you’re going to need your business to be a lot bigger than that, so you may have to dig deep and really think about whether your brand is relatable to a larger audience.

 

REMEMBER: Be consistent!

Now that you’ve identified your customer and the voice, take a hard look around at the rest of your branding. Is your branding consistent from the four senses perspective – does it look, feel, smell, taste like your brand? Would your ideal target customer buy and more importantly recommend to their friends? Sophisticated branding will take all this into account.  Commanding a higher price for your product requires that you consider these elements. Set some branding goals for your company and prioritize based on budgets. But do set them because as the market opens up, the strong brands who have developed loyalty will be the ones truly capitalizing on the future of cannabis branding.

 

The A-Team specializes in converging great brands with marvellous stories the media wants to write about.

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How Much Should You Spend on Cannabis Marketing?

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How much should you use for cannabis marketing budgets?

You can see the cannabis market changing daily and yet we haven’t even reached anywhere close to a zenith in cannabis purchases. It’s easy to be lulled into thinking that a growing market allows you to limit your marketing budget. Unfortunately, no. Despite the growing businesses, success in the cannabis industry is no sure thing. So how can you take advantage of this growing market by really developing a foothold?

Establishing your brand and investing in marketing is going to be the difference between success and failure in the cannabis industry.

The cannabis industry is growing, but you need to establish your brand and foothold now to ensure you’re able to withstand the inevitable maturation and consolidation of the industry as regulations ease.

Fundamentally, the wine market is a great comparison to the cannabis industry because it’s an industry built around an agricultural product that’s highly regulated. There’s one glaring difference between the two: wine is a mature product, the market is educated about it and those who drink wine, know they like drinking wine. Drinking wine carries with it a certain lifestyle sophistication that some people aspire to, in other words, it’s a lifestyle product. Wine companies know investing in branding can make all the difference because the market is highly competitive and they generally budget 15%-20% of sales for marketing, this is a mature product with an established brands.  You’ll notice in the below infographic that recreational cannabis is larger than wine sales, but cannabis sales haven’t even remotely become mainstream or moved past the “stoner” lifestyle image. If you’re marketing to a “stoner” culture audience, then perhaps you can develop a budget that’s on the low side, but if you see only 10% sales growth, you’ll know what to expect.

But if you’re hoping to capture some of the market that lives beyond the “stoner” audience, then you’re going to need a bigger budget and you’ll need to think like a lifestyle marketer. You can bet that the cannabis industry is going to get incredibly competitive as time goes on. Establishing your brand and investing in marketing is going to be the difference between success and failure in the cannabis industry.

What should my cannabis marketing budget be?

Setting cannabis marketing budgets is no easier (in fact, it may be harder) than doing so for other industries and this is because of the multiple variables impacting this decision-making. We present these stats to you as a guideline to determining your marketing spend vs. sales growth.

Basically, ask yourself how much you want to grow and allocate an according percentage of your budget to the growth. You can’t expect sales to grow 100% with a 10% marketing budget. It may happen, but the more likely scenario is that by the time you realize it isn’t going to happen, you’ll be boxed into a budget that doesn’t support the other expenditures you made in anticipation of growth.

Your mileage may vary and we’re happy to talk to you about your specific niche in the industry to help you develop a plan if you don’t have one at all. Keep in mind if you’re in launch mode, your PR and marketing budgets should be on the higher side, which pretty much applies to almost every cannabis brand today.

Something else to consider are the advertising limitations facing the cannabis industry. Depending on your actual product, you may not be able to buy ads on Facebook and Google. Does that mean you shouldn’t have an advertising budget? No, it actually means you’ll need to reallocate what would be an ad budget to something else, perhaps social media marketing and community building or content marketing or public relations.

Understand this: if you don’t feel comfortable allocating this kind of percentage to marketing, it doesn’t mean you should pack up your bags and quit-it just means your progress will go slower and you should have realistic expectations.

How Long Will It Take for Marketing Efforts to Deliver Results?

There are numerous variables in the answer to this question. Including your customer, your product and your previous efforts. Let me assure you, with the right budget, all things are possible.

Marketing, PR and branding efforts all work together and they tend to compound, especially in the early days. The more marketing you do, the earlier the ball will start rolling.  You can do yourself some favors by tracking metrics along the way so you know you’re hitting the right mix of marketing and that your marketing dollars are being optimized. Consistency is key in marketing and PR, so plan for consistency with bursts of activity around your strategic sales times.

All that to say this, the bigger your budget as a percentage of sales, the faster you’ll see sales grow, so if you’re in a hurry, budget accordingly.

cannabis marketing budgets stats

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