The Top 5 Pitfalls in CBD Marketing
It’s no secret that the CBD market is exploding. It’s predicted that by 2024 the market will be worth $20 billion. Right now the CBD market is valued at roughly $2 billion, so many players are scrambling to grab their piece of the pie.
We know from watching markets mature that the difference between the companies that become the top players and the companies who end up in a niche corner or, worst case scenario, falling into oblivion, will have more to do with business skills than with the actual product. Take VRBO, for example, a short-term rental market just like Air BnB that launched in 1995. Air BnB didn’t even begin until 2008, when they became the poster child for digital disruption. Today, Air BnB has a $30 billion valuation while VRBO was acquired for $3.9 billion. Why didn’t first mover advantage work for VRBO? The founders of AirBnB were knew how to market their product well.
Don’t be the VRBO of CBD
Taking the title of market leader in CBD will largely come down to marketing. Below we outline the top 5 pitfalls we are seeing retailers and manufacturers fall into today.
- Staying too close to home – Many CBD retailers are following the THC market and sticking to brick and mortar locations or focusing on farmers markets. There is good reason to only sell THC in store – that’s where it’s legal. The same cannot be said of CBD. Where eCommerce allows retailers and manufacturers to reach an exponentially larger audience.
- Dipping a toe in eCommerce – Gone are the days of eCommerce when you can throw up a site on Shopify, put up a few posts on Facebook and wait for the dollars to roll in. With billions of webpages and social media accounts creating an overabundance of noise in the digital world, these tactics can’t cut through anymore.
- Hitting the compliance wall – Sure, CBD is legal, but many of the big players in digital marketing and eCommerce haven’t quite figured that out. Navigating the various rules each company has set is a minefield and is pushing a lot of retailers towards manual work or retreating back to their brick and mortar locations, killing the potential for scale.
- Assuming the CBD market is flooded – If you live in Colorado or Oregon, it might seem like CBD is an obvious choice for pain management, anxiety, athletic recovery or any other myriad afflictions that we know CBD can effectively treat. However, it’s still a new market and there are plenty of people with doubts. Messaging within a developing market is critical to reaching potential customers who are still on the fence.
- Taking it back to 90’s – It wasn’t that long ago that anything marijuana related was marketed with tie-dye, five leaf pictures, and probably some Bob Marley somewhere. Ever since legalization spread outside of the Netherlands the market has grown up and is now encapsulated in sophistication. Retailers with a dated presentations won’t reach the highest potential market segments who are looking for a brand to trust in an unregulated market.
The next few years will determine who will take the lead in a $20 billion market. The opportunity is there today, but that window is closing. As current players adapt and become more business savvy, the barriers to entry will keep increasing.
CBDeebly helps CBD manufacturers and retailers navigate through these murky waters and position themselves for exponential growth.
Schedule a quick call with us today. Let’s grow together.