Can Marketing Make a Big Difference for Pot Stocks?
When it comes to marijuana stocks, investors don’t always think about the effect that marketing has on prices. This includes what type of packaging a company uses as well as its online presence and more. All of these factors add up to how a cannabis company looks to the outside world. In the past few years, cannabis companies have had to find alternative and strategic ways to market and advertise. Marijuana stocks like KushCo Holdings Inc. (OTC:KSHB) and MedMen Enterprises Inc. (OTC:MMNFF) that work in retail cannabis, have been at the forefront of the marketing fight.
In terms of sheer sales, many marijuana companies have been able to benefit from increased marketing budgets. In Colorado alone, sales of recreational cannabis passed $150 million in June. In July, California reported sales of around $350 million. Both of these represent record highs for the states which is quite a good thing for pot stock investors to consider. Despite the current world events, the cannabis industry has been able to succeed and push past previous market records. With that in mind, let’s take a look at how marketing affects pot stocks.
Trends in Marketing Help to Support Marijuana Stock Growth
Marijuana stocks like Planet 13 Holdings Inc. (OTC:PLNHF) and Curaleaf Holdings Inc. (OTC:CURLF) have worked on new marketing plans to help increase future sales. These companies have been working with some major tech platforms like Facebook and Google to help increase traffic. But, with the federal regulation of cannabis in limbo, it has been difficult to say the least. Pure play pot stocks like Cresco Labs Inc. (OTC:CRLBF) have without a doubt had a tougher time, while product producers have been able to push forward with unique marketing strategies.
One ad specialist in the cannabis industry stated that “as the level of access to data and technology continues to evolve rapidly in the space, top-performing cannabis brands that leverage granular and personalized strategies when targeting consumers have proven the most successful.” While this sentiment may seem obvious, many marijuana companies fail to push ads that target individuals. With marketing, creativity is at the heart of success. In addition, cannabis companies need to know target audiences very well. With this in mind, marketing can be much easier and efficient.
Tech Is Leading The Charge For Pot Stocks to Grow
In 2020, we have seen many leading marijuana stocks use technology to support business development. While the investment in tech can take some time to show value, it undoubtedly is a game-changer. With the pandemic, many cannabis companies have had to take operations online. This includes preordering, marijuana delivery, and information about a given dispensary such as hours and the menu. With this, many cannabis companies have had to develop cohesive and intuitive websites for consumers to use.
In combination with this, companies have had to increase marketing and advertising budgets to stay competitive. Investors should make sure that they are watching which pot stocks are advertising and how the companies are doing so. This can be a great way to see where a cannabis company is headed and how it is attempting to get there. With that, marketing remains a key principle in the fight for cannabis stock growth.