Tag Archive for: stats

PR Insights from the Eaze Cannabis Report

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The 3 Most Surprising PR Insights from the Eaze Cannabis Report

[3 minute reading time]
For cannabis brands, 2020 was an eye-opener. This week Eaze released their year in review for cannabis 2020 that offers PR insights for cannabis brands. As a delivery service, Eaze can pick up on some fascinating stats from a year that was (hopefully) like none other. Unsurprisingly to those in the industry, high anxiety levels fueled cannabis consumption to new heights in 2020; order volume was up by 15% on the Eaze platform even though dispensaries are considered essential businesses in many states, including California, which is 2X the combined size of the four states (AZ, JN, MT, MD) that legalized in 2020. The question is always “will this be the same or better in 2021?” While stats from years past are always fascinating, especially if they are an anomaly, when we looked at it, we see important PR insights from the Eaze Cannabis Report.

 

#1 Vapes Held Their Own Across All Ages

Even after the 2019 vape crisis, cannabis users continued to choose vapes consistently. While edibles were the #1 category of 2020, for GenZ they remained first choice. Apparently, GenZ isn’t concerned in the slightest about the vapes and continues to trust that cannabis brands will continue to earn their trust. Vapes were second only to edibles for Millenials and GenX. These two generations are very familiar with vapes, so there’s no surprise there and plenty of vape brands squarely target these demographics.

Boomers also chose vapes, they came third behind edibles and flower. Perhaps because of the covid-lung concerns, Boomer vape purchases declined in 2020, but vapes still outperformed topicals and prerolls for Boomers, which is fascinating given their appeal to the age group. The fact that Boomers choose flower second only to edibles isn’t much of a surprise considering the nostalgia that flower holds for that generation. If you’re a flower company, that’s definitely something to tap into in your cannabis public relations, branding, and advertising. PR Insights from the Eaze Cannabis Report offer cannabis brands important opportunities for 2021 too.

 

#2 Purpose Driven Cannabis Brands See Big Gains

Within cannabis, the number #1 purpose-driven theme is social equity, which has been important since legalization started. 2020 heightened social equity awareness for all consumers and cannabis buyers especially responded. According to Eaze, 9.5% of all customers bought social equity brands. What’s surprising in the cannabis stats for cannabis brands is customers over 30 were more likely purchase from social equity brands than younger customers. Men, in particular, were more likely to buy from social equity brands than women. These two statistics are surprising because they aren’t consistent with typical purpose-driven brand buyers   which typically skew female and younger.

 

#3 420 NOT the Biggest Cannabis Holiday in 2020

Green Wednesday, the Wednesday before Thanksgiving topped the purchase charts in 2020, up from second place in 2019. What’s also interesting is the other big seller nights: last night of Hanukkah, New Year’s Eve and Christmas Eve. None of these last 4 “cannabis holidays even broke into the top 5 in 2019, so their appearance provides overlooked cannabis public relations and advertising opportunities in 2021. Be on the lookout for other lifestyle holidays your customers might pair with cannabis because 2021 will continue to be disruptive in terms of large-scale events and large gatherings which typically dominated big sales days outside of 420 in previous years. The 2020 cannabis brand insights report by Eaze lists some outstanding examples of big sales days driven by current events or lifestyle.

Overall, like others, we expect 2021 to be a very good year for cannabis sales, but since consumer habits are changing, it will be ever more important for cannabis brands to watch their own data closely so they can engage and expect their customers’ next move.

The Eaze 2020 State of Cannabis Report

 

This article originally appeared on our sister site Primo PR

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Cannabis Marketing Stats Answer: How Much Should You Spend on Cannabis Marketing?

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Cannabis Marketing Stats that Help You With Your Cannabis Marketing Budget

You can see the Turning Cannabis Event Marketing into Public Relations Opportunities 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 Why Cannabis Brand Trust Matters More Than Ever 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 life-style 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 Stats That Matter

cannabis marketing budgets stats

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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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