With the growth of the legal cannabis industry, businesses have had a more than difficult time reaching current and potential consumers through advertising. Most traditional forms of media buying are off-limits in the space. With that said, several companies have stepped up to the plate — so to speak — by launching mobile games and apps that target cannabis consumers. Essentially, giving advertisers a new medium to reach their audiences.
Mobile games just may be the most effective way for cannabis companies to reach consumers today.
Troubles in a Booming Industry
By 2026, the cannabis industry is expected to exceed $50 billion USD through both recreational and medical channels. Other than the obvious, many ancillary industries will benefit from the cannabis industry’s boom. For example, recently Helix TCS (OTCPK:HLIX) made an announcement of the acquisition of Security Grade Protective Services LLC, which helped to solidify Helix’s position in the cannabis security space.
Federal opposition has kept it difficult for all cannabis related companies to target consumers/cultivators. Traditional media platforms such as television are an absolute “no-no” for advertisers. Leaving the digital space as the go-to alternative to reach consumers. Despite ad networks like Mantis popping up, there is a lack in traffic and scalability that many cannabis companies are looking for.
Other platforms such as MassRoots Inc. (OTCQB: MSRT) have started to fill the void, but often fall short in their offerings to advertisers when compared to platforms such as Google Adwords.
Are Mobile Games the Answer?
At 8.1% compounded annual growth rate to $109.2 billion this year, according to Newzoo’s 45-page Global Gaming Market report. The mobile gaming industry is showing no signs of slowing down. Many of today’s most popular games operate using a “Freemium” model. Opposed to more traditional models, where one pays for the game up front, revenues are earned through serving consumers viewing ad placements, and in game up sells.
Hemp Inc, owned by First Harvest Corp.’s (OTCQB: HVST), is one of these ‘freemium’ games. Players must choose strains, buy equipment, and more. With top rankings in both Google and Apple’s app stores, and a growing user base, it is cultivating a large audience of cannabis enthusiasts that advertisers can reach through the game.
Advertisers have the ability to target users in highly targeted means, with info on what device they are playing on, all the way to social engagement habits. This precise targeting often provides higher ROI than traditional media buys, and is solving a huge pain point for brands trying to reach cannabis enthusiasts today.
What Is Next for the Cannabis Industry?
With the tremendous growth that the cannabis industry is having, there will be a larger and larger need for platforms that allow advertisers to reach consumers. Mobile apps offer one solution for now, but inevitably, the major digital ad networks like Google Adwords and Facebook’s platform will have to give in to the increased demand and potential revenues. Only time will tell which of the bigger players jumps into the ring first.
Be sure to subscribe to Growth Stock Network’s daily newsletter so you never miss an important update.