Cannabis Programmatic Advertising: Compliant Dispensary Ads on Popular Websites


How To Place Dispensary Ads Using Programmatic Display Advertising

Cannabis programmatic advertising is a super-fast way of buying and selling ads online. It helps brands and companies quickly get space for their ads on websites, videos, and even TV shows. 

In the last ten years, the amount of money spent on all digital ads has grown a lot, from $26 billion to $151 billion every year! Now, about 70% of these digital ads are bought and sold using programmatic ad tech. 

This technology makes things really speedy by automating the process, so your dispensary advertising can be bought in just a blink of an eye. 

Instead of buying dispensary ads one by one, cannabis programmatic advertising platforms connect business owners with lots of available spots all at once. 

They also use smart computer programs to help decide where and when to show your dispensary ads and how much to pay.

These platforms also gather a ton of information from different places, which helps cannabis advertising agencies like DankRank SEO and pick precisely who we want to see your ads. 

For example, cannabis programmatic advertising can target specific groups like people who have visited your website in the past, people who have purchased weed online from another dispensary, and even people who have searched for weed reviews or cannabis information.

In this article, we are going to shed light on how you can uplift your dispensary marketing campaigns through cannabis programmatic advertising. 

cannabis marketing expert thinking about a dispensary advertising campaign for a client

How Does Cannabis Programmatic Advertising Work?

Cannabis marketing has evolved in recent years, thanks to AI-backed techniques. That said, many marketers tend to avoid cannabis programmatic advertising because they perceive it as complex and overwhelming. 

However, in reality, you encounter numerous cannabis programmatic advertising examples daily as you browse news apps, play games such as Sudoku, or use dating apps.

Fueled by artificial intelligence and utilizing real-time bidding (RTB), cannabis programmatic advertising offers dispensaries a streamlined way to effectively target compliant audiences with precision and scalability.

Furthermore, cannabis programmatic advertising presents a robust and measurable alternative to traditional cannabis marketing methods like outdoor billboards and Google Advertising. 

It enables easy tracking of key performance indicators (KPIs) such as impressions, revenue, and return on ad spend (ROAS), allowing for a comprehensive view of the customer’s journey leading to an eCommerce purchase.

hemp leaves and cbd cannabis oil display for cannabis programmatic advertising

Why Use Programmatic Ads for Cannabis and CBD?

Cannabis programmatic advertising platforms are highly valuable for cannabis and CBD advertising businesses aiming to advertise digitally because they provide an alternative to Facebook and Google, both of which have strict policies against cannabis and CBD ads. 

While Facebook and Google, known as “the Duopoly,” dominate about half of US digital ad spending, cannabis programmatic advertising platforms open up ad space across the other half of the digital advertising landscape. 

Many popular mainstream websites, such as USA Today, HuffPost, Newsweek, Politico, and ESPN, readily accept programmatic CBD advertising purchases, attracting large volumes of traffic.

checklist concept accomplishment for dispensary advertising

8 Tips for Cannabis and CBD Programmatic Advertising

So, how do dispensaries advertise? Here are some simple tips for advertising cannabis and CBD products using programmatic methods:

1. Follow the Rules: Make sure you know and stick to the laws about advertising cannabis in your area. Don’t make claims about curing illnesses, avoid anything that might appeal to kids, and label products for adults.

2. Choose the Right Channels: Since you can’t advertise cannabis on TV or radio, use programmatic ads to reach your audience through websites and apps that cater to cannabis users.

3. Focus on CBD: Highlight CBD products in your ads since they have fewer restrictions than traditional cannabis.

4. Stand Out: Show what makes your brand special and different from others in the CBD market.

5. Set Goals: Decide what you want to achieve with your ads, whether it’s increasing awareness or driving sales.

6. Add a Personal Touch: Even though ads are automated, make sure they connect with people by adding a human touch.

7. Use Data: Look at the data from your CBD ads to see how well they’re working and how you can improve them to reach more customers.

8. Outsource to an Experienced Cannabis Advertising Agency: Digital advertising, audience targeting, and campaign optimization require an experienced skill set.

Make your life a lot easier and choose to hire a reputable cannabis marketing agency to set up and manage your cannabis programmatic advertising.

happy cannabis marketing agency experts celebrating dispensary ads

How Can You Benefit from Cannabis Programmatic Marketing?

When it comes to advertising your cannabis business through paid ads, you’re likely dealing with two main challenges:

  • Limited Budget: Many cannabis dispensaries operate on smaller marketing budgets, so every dollar spent must count.
  • Legal Restrictions: There are limited advertising opportunities for cannabis businesses because they may be non-compliant in some states.

Given the legal complexities of marijuana marketing, it’s crucial to be extremely cautious about where and how your ads are displayed. 

Programmatic services, managed by cannabis marketing experts, offer a solution by allowing you to control where your ads appear and who sees them, thus mitigating some of these challenges.

The great thing about using cannabis programmatic advertising for dispensary advertising is that it allows you to target your specific audience precisely, increasing the likelihood of success for your ads. 

This targeted approach results in much better returns on investment compared to non-programmatic methods.

Unlike non-programmatic advertising, where humans manually oversee the process, programmatic advertising for CBD relies on algorithms to continuously assess the value of ad placements in real-time. 

This automated approach ensures efficiency and accuracy that human oversight alone cannot match.

bank notes and cannabis leaves growing in a garden after cannabis programmatic advertising

Maximize Growth Using the Power of Digital Advertising for Cannabis & CBD

In states where cannabis is compliantly legalized in the USA, dispensary advertising and weed delivery services present a unique opportunity for growth. 

Leveraging dispensary advertising strategies such as cannabis programmatic advertising and video advertising, businesses can effectively reach their target audience and drive sales.

Cannabis programmatic advertising allows businesses to place ads on popular websites in various formats, including display/banner ads, native ads, and video ads. 

Additionally, with the rise of connected TV (CTV) and streaming apps, businesses can explore new avenues for advertising while staying compliant with regulations.

While digital advertising offers immense potential, it’s essential to recognize that these campaigns require a healthy advertising budget and monthly ad spend. 

Based on industry experience, a recommended minimum monthly ad spend of $8,000 to $10,000 is advised to achieve a satisfactory return on investment (ROI) or return on ad spend (ROAS).

Despite the investment, the benefits of digital advertising for cannabis businesses are substantial. Programmatic dispensary advertising, in particular, offers remarkable targeting options that enable businesses to tailor their campaigns to specific audiences.

One of the primary benefits of cannabis programmatic advertising is contextual targeting, where dispensary ads are placed in environments relevant to the content being viewed. 

This ensures that dispensary ads reach individuals with a genuine interest in cannabis products, enhancing the effectiveness of the campaign.

Another powerful targeting option is transactional retargeting, which allows businesses to re-engage users who have shown interest in their products but haven’t yet made a purchase. 

By tracking user behaviour and interactions, businesses can deliver personalized messaging that encourages conversion.

This level of precision ensures that CBD ads are delivered to the most relevant audience segments, maximizing the impact of the campaign.

dispensary business growth concept.

The Power of Cannabis Programmatic Advertising for Dispensary Growth

Dispensaries looking to expand their reach and engage with their target audience can leverage the power of cannabis programmatic advertising. 

This cutting-edge approach offers dispensaries a plethora of benefits, transforming the way they connect with potential customers and promote their products.

Targeted Reach:

Cannabis programmatic advertising enables dispensaries to precisely target specific demographics, interests, behaviors, and geographical locations. 

This laser-focused targeting ensures that ads reach the most relevant audience, boosting engagement and conversion rates.


With cannabis programmatic advertising platforms, dispensaries can navigate compliance regulations seamlessly. 

These platforms ensure that CBD ads are served only in regions where cannabis is compliant and to audiences that meet legal age requirements. Hence they safeguard against potential compliance issues and uphold a positive brand image.

Increased Visibility:

By leveraging cannabis programmatic advertising, dispensaries can expand their visibility across a variety of digital channels, including websites, mobile apps, and social media platforms. 

This broader reach helps dispensaries broaden their customer base and attract new clientele.

Measurable Results:

Cannabis programmatic advertising provides robust analytics and reporting tools, allowing dispensaries to monitor the performance of their ad campaigns in real time. 

Key metrics such as impressions, clicks, conversions, and ROI can be tracked, enabling dispensaries to optimize their campaigns for maximum effectiveness.


Compared to traditional advertising methods, programmatic advertising for CBD offers a cost-effective solution for dispensaries to reach their target audience. 

With the ability to set budgets, strategically bid for ad placements, and optimize campaigns, dispensaries can achieve their marijuana marketing goals within budget constraints.

Flexibility and Scalability:

Cannabis programmatic advertising offers dispensaries flexibility and scalability, allowing them to adapt their campaigns in real time based on performance data and market trends. 

This agility enables dispensaries to experiment with different ad creatives, targeting options, and messaging strategies to drive better results.

Brand Awareness and Engagement:

By serving targeted ads to relevant audiences, dispensaries can enhance brand awareness and engagement among potential customers. 

Programmatic advertising for CBD empowers dispensaries to deliver personalized messages that resonate with their audience, fostering stronger connections and brand loyalty.

Cannabis programmatic advertising is a game-changer for dispensary ads, offering a potent means to reach their target audience, increase visibility, drive engagement, and achieve marijuana marketing objectives in compliant markets. 

question marks written on post it notes. dispensary advertising

How Do Dispensaries Advertise? And How Does it Work

Multiple dispensary advertising ideas enable businesses to target audiences based on demographics, online interests/behaviour, and geographical location. 

Have a look at how do dispensaries advertise using specific targeting:

  • Demographic Targeting

In cannabis programmatic advertising, demographic targeting plays a crucial role in tailoring campaigns to specific segments of the population. 

Advertisers can customize their ads based on factors like age, gender, income, education level, and marital status. 

This precision ensures that ads resonate with the intended audience, leading to higher engagement and conversion rates.

  • Interest-Based Targeting

Interest-based targeting in dispensary advertising ideas allows advertisers to connect with individuals who have shown interest in cannabis-related topics, products, or activities.

By analyzing user behaviour such as browsing history and online interactions, advertisers can deliver relevant ads that capture the attention of potential customers. 

This approach increases the likelihood of users engaging with the ad and taking desired actions.

  • Geographical Targeting

Geographical targeting is another essential aspect of cannabis programmatic advertising. 

Advertisers can focus their campaigns on users in specific geographic locations, whether it’s targeting users in a particular city, state, or region. 

This level of targeting ensures that ads are relevant to local audiences, maximizing the impact of the campaign and driving foot traffic to dispensaries.

team of cannabis seo experts working

How Does a Dispensary Advertising Agency Help You?

If you’re wondering about the best way to advertise your CBD or cannabis products, consider the benefits of programmatic display advertising. 

Here’s why it could be the perfect fit for your business:

Targeting Made Easy

With programmatic advertising for CBD, you can precisely target your ideal audience. Did you know that the average cost per click on Google search ads is $2.32, whereas on the Display Ad Network, it’s under $0.58? 

That means you can reach your target audience more affordably and effectively.

Cost-Effective Solutions

When compared to Google search ads or Facebook promotions, display ads offer a more cost-effective option. 

For instance, the average cost per action (CPA) in a Google advertising search campaign is $59.18, while for online Facebook ads, it’s $18.68. 

With display ads, you can stretch your advertising budget further while still achieving significant results.

Tracking Your Success

One of the key advantages of programmatic advertising is the ability to track your campaign’s performance in real time. 

You’ll have access to valuable metrics like click-through rates (CTR) and cost per acquisition (CPA), allowing you to optimize your campaigns for maximum impact.

Success Stories

Consider the case of a CBD company that saw remarkable results with programmatic display ads. 

By leveraging customized conversion tracking and retargeting pixels, they achieved an average CPA of just $9. 

That’s a testament to the power of targeted advertising and smart retargeting strategies.

group of dispensary marketing experts working on a cannabis advertising strategy

Why Partnering With A Dispensary Advertising Agency Is The Best Idea?

Do you know what are some dispensary advertising ideas that increase the potential of programmatic advertising? 

One innovative approach is to create interactive ad experiences that captivate audiences and drive engagement. These ads can include gamification elements or interactive features that encourage user interaction and participation.

Another effective tactic is to leverage sponsored content partnerships with relevant publishers or influencers. 

By collaborating with industry experts or influencers with a strong following, dispensaries can expand their reach and credibility within the cannabis community.

Additionally, dispensaries can explore creative ways to utilize user-generated content in their advertising efforts. 

Encouraging customers to share their experiences with the brand on social media platforms can create authentic connections and foster brand loyalty.

Cannabis programmatic advertising offers dispensaries a powerful tool to enhance their visibility and drive business growth. 

By partnering with a dispensary advertising agency that specializes in programmatic advertising, dispensaries can unlock new opportunities for success in the competitive cannabis market.

Let’s enhance your cannabis advertising strategy collaboratively. Reach out to us for a complimentary 30-minute consultation or to request a quote.


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