So you want to hop on board the multi-billion dollar CBD train, but before you develop a marketing campaign for a CBD product, you need to know the rules.
The Food and Drug Administration (FDA) and the Federal Trade Commission regulates how CBD is advertised and marketed, because of this CBD brands are under a watchful eye and must avoid words like cure, treat, and prevent. They also have to steer clear of linking to articles with dubious medical claims.
So what exactly is CBD? Cannabidiol or CBD is a chemical compound in the Cannabis plant but unlike its counterpart, tetrahydrocannabinol or THC, CBD is not psychoactive. CBD can’t get you high, but it does cause a relaxation effect.
In 2018, The Farm Bill legalized CBD derived from hemp that contains less than 0.3% THC. This bill opened the floodgates to allow the commercial sale of CBD. According to the Brightfield Group, a research firm focused on the cannabis industry, CBD sales have reached $5 billion in 2019 which is a 700% increase from 2018. Everything from drops to dog treats is hitting the shelves of local CBD-specific shops, direct to consumer websites, and even Amazon, but what can a CBD brand do to set themselves apart from a market that is starting to get crowded?
Traditional advertising for CBD can vary from state to state, that’s why most CBD brands tend to utilize social media, but even on social media platforms, there are rules. CBD brands technically can’t advertise on Facebook or Instagram, but in recent months the social media behemoths have allegedly relaxed this policy. Like many products, CBD brands have been heavily utilizing social media influencers and have tapped micro (10,000 to 50,000 followers) and nano (1,000 to 10,000 followers) influencers, but some brands like cbdMD recruit A-list athletes and even famous cats.
Similar to the last decade’s craft beer boom, there seems to be a CBD brand for everyone, but no matter who you’re targeting the one thing to remember about marketing CBD is to keep up with the ever-changing laws and regulations surrounding it. What is illegal this month, might not be the next. The only certain thing is that CBD is here to stay.
Do you have a brand that could use a revamp, or needs developing? Reach out to the creative minds at 321, and we’ll work with you in creating a brand that you’ll be proud of.