Cannabis & The Media - Branding Bud Live Episode 35

July 6, 2023 David Paleschuck, MBA, CLS | Author & Cannabis Brand Expert

THE SUMMARY

What role does media play in shaping the cannabis industry? Join Branding Bud Live co-hosts, David Paleschuck and Adriana Hemans, and their guest, Amy Deneson, Co-Founder of the Cannabis Media Council to discuss the power of media as it relates to cannabis.

THE CO-HOSTS

David Paleschuck, Adriana Hemans

THE SPECIAL GUEST

Amy Deneson, Co-Founder, Cannabis Media Council

THE TRANSCRIPT

DAVID PALESCHUCK

Welcome to Branding Bud Live, the live stream that’s 100% THC and 0% WTF. Every week we speak with business people about the business of cannabis. I’m David Paleschuck, founder of Branding Bud Consulting Group and author of the first book on cannabis branding. I’m joined by my co-host Adriana Hemans, a Marketing executive with over 8 years in the cannabis space. Hi Adriana!

ADRIANA HEMANS

Hi David. Thank you for that intro. I’m so excited to co-host the show with you. We’re bringing amazing guests from across the cannabis ecosystem to share their perspectives. My favorite thing about Branding Bud Live is that we focus on building community - and we encourage audience participation. It’s not just about us talking, it’s about all of us building something together. So feel free to drop your questions and/or opinions in the chat, and we’ll share them too.

DAVID PALESCHUCK

We’re here to build community, educate and entertain … so let’s jump into today’s show, "Cannabis and The Media". Today, we’ll be chatting with Amy Deneson, Co-Founder of the Cannabis Media Council to discuss how media can help and hinder the cannabis industry. Some of the topics we’ll cover are:

What role does media play in shaping consumer perceptions and preferences?
How important is storytelling in connecting with cannabis consumers?
How can cannabis brands leverage mass media?

I’m super excited to chat with Amy today.

ADRIANA HEMANS

Me too!

DAVID PALESCHUCK

Let’s welcome, Amy Deneson.

AMY DENESON

Hey, hello. Hello. Thanks for having me.

ADRIANA HEMANS

Tell us about yourself, Amy. What are you passionate about?

AMY DENESON

Thank you and thanks for the opportunity. David And Adriana. I'm so thrilled to be joining with you and so many people in the audience. I see you Hello, Jordan. Yo, yo right back at you. Thank you for all you do to uplift the cannabis conversation. Thank you for the opportunity to share you know what drives me and what's truly at the heart of my work. And you know why I've created the cannabis media Council. And truly the beating heart of my life is that I'm a pleasure activist, which means I advocate for people to find ways to discover ways create ways of enjoying their life in new ways in new and exciting ways in many ways. in many capacities that sometimes are censored or stigma, and so it's driven me into careers in the arts, recently in cannabis, but also technology over the last 20 years as it's evolved to help connect us, not only to build communities, but also markets and brands. And so really, truly, what drives me and what gets me absolutely fired up, is helping people discover ways to enjoy their life to improve their life.

DAVID PALESCHUCK

Amy, tell us about the Cannabis Media Council. What is it and why does it exist?

AMY DENESON

Absolutely. The cannabis media council came about two years ago, is I co-founded with Joyce Denali, who is an incredible force in California and has seeded some of the most incredible businesses that we see operational today. And it really came around this idea, because I at the time was starting to leave my role as a marketing executive for Curaleaf. And venturing out to create my own ad agency Pheno, and at the time served to take a holistic approach to going to market within the paid media space, the advertising space, because I did see that the part of the marketing mix that was the most underserved at the time is advertising. And it's something that's important. And we can talk a little bit more about why advertising is so important. But at the at the start, that was this idea that we have all these brands and businesses going to market, and from Joyce's perspective, requesting funding to build the market within their own within our own territories. And there's only so far, the individual brands can go alone. And there's only so far that a marketing budget, which I have to say, is still woefully underfunded in the marketing sector. And we understand why that is. But it doesn't change the fact that marketing is underfunded in the cannabis space. And then we have individual brands, trying to undo decades of misinformation and stigma. And what we needed was a national campaign, a national perspective, to really uplift the category as a whole. And so the short answer, when Joyce asked me, can we do a national ad campaign – the answer was yes. The longer answer is how do we create the most impact we can which became the cannabis media Council, which is at its core, a trade group. And right now we have almost 300 members who have joined and membership is free with high values, for those who are operating within the space right now, who've raised their hands and say, We need a tide to lift all these votes. And we would love to see it done through we would love to see it done through national ad campaigns that drive category consideration, so that we can address we can grow the addressable market is looking at, you know what cannabis is? It's always good to anchor in what are we talking about? And at the current state? Yes, we are talking about a plant, we are talking about medicine, we're talking about a lifestyle, we're talking about CPGs. And we're still talking about a federal schedule and drug.

ADRIANA HEMANS

Tell us about FULL SPECTRUM, your new report that’s available now.

AMY DENESON

The full spectrum report guidelines for Responsible cannabis advertising is the first of its kind to really set down a foundation for what we hope to see through creative campaigns. But before we created full spectrum, it was really important that the cannabis media Council lead by example. And so the very first thing we did was release our first category campaign called I'm high right now. Please in the chat, raise your hand if you've seen it, or you can see it I'm high right now.com And the idea was to put out a campaign that we felt embodied the best practices. And we're so proud one of our funding board members, Allison Disney, and also the creative team at SR mercy, who does incredible branding and marketing work, came back with this campaign. And so we focused on our elders we focused on, how do we talk about living a thriving life, as we age, and so much of the conversation, you know, can get very heavy. And we wanted to have, you know, just for one, one voice out in the market, some levity around consuming this product. And we also thought it was important to showcase and really highlight our elders, because oftentimes, they are overlooked in advertising and marketing. And they not only are primary consumers, but also, they are influential within their families and within their communities. And so if grandma and Auntie are okay, with consuming cannabis, it has a wonderful halo effect for the family. And so we released we released the I'm high right now campaign at the end of January. And then we created the full spectrum report to be a resource that not only are we leading by example, and showing that it absolutely can be done, but then we were creating a resource that right now that we're providing for free, both for brand advertisers, as well as for media outlets and publishers who are considering or want to bring in the cannabis sector for their paid programs and their inventory.

DAVID PALESCHUCK

What are the 7 core pillars of responsible cannabis advertising?

AMY DENESON

Sure, thanks for the opportunity to share and we go in depth for all seven of these. But for the sake of this conversation, I'll do just a bit of a highlight is that the very first one is that advertising serves to help drive access and awareness for legal and compliant businesses. And so how do we help grow the addressable market, but then also lead to the regulated businesses. The second one is that the ad in and of itself entirely, whatever form it takes is that it meets all regulatory guidelines within the municipalities up to the state level, right? So it's, it's very important that we are very focused in on each of the regulations for where they're at, and work with partners who are aware of them. The second or third, excuse me, pillar is that we play the most responsible attention to not advertising to children. And I think that this has been played out in many different scenarios in many sectors, that it does not serve you to advertise to children. And we're happy to dig into that more. But then also our fourth is that in our medical use states, that we develop advertising, creative and targeting that showcases patients with dignity, and is you also HIPAA compliant, and really speaks to this as a medicine. But then in, in, in states that are welcoming to adult use consumption, that they also represent the diverse cultures experiences that have for generations and now continue to create culture, in connection to this plant. And so really to showcase that represent it and be the ad that you want to see in the world and that way. The sixth is that we use the absolute best practices in creative and communications in language to elevate this industry that while we do have advertising to serve individual business aims and goals, right now, as we move from a movement into an industry, each brand is responsible for collective growth. And to be and to and to keep an eye on that we're all being individually watched. But we're reflecting on the whole And so how do we use the absolute best practices to be the most creative, the most compliant, the most engaging that we can be? And then lastly, the seventh pillar is that advertising the green. And we mean that in the most comprehensive sense, that not only would within you know, regulatory environments, are we doing this to be the most environmentally conscious, I'm really looking at sustainability in our practices for how we advertise what type of channels what kind of media we use, but then also green, as in it drives money ROI, and so that we can keep these businesses growing. And so the Seven Pillars really do serve as recommendations to help inspire, and to help set some good guidelines, not only for brands that are entering into a paid media investment, then also publishers who are considering welcoming the cannabis sector to their media, but then also for our regulatory bodies, that are setting rules and regulations around this, that there may be a reference point for them to consider how they might write some laws as to best serve these businesses that they're welcoming to participate in the market.

ADRIANA HEMANS

What are best practices and examples for advertising with compliance and creativity?

AMY DENESON

Right on it is true, cannabis attracts, I think, entrepreneurial, and also, you know, a real has an independent spirit. But then also, we've been relegated to having to create our own systems and structures, because we're being highly censored by you name it, I don't have to go into over the people. I see so many people in the chat who have joined us today that are experiencing this pain that I mean, payment processors. Is it banking? Like I mean, all of it right system, I mean, just like it's it ad nauseam, like how much exists in a world that doesn't work with the cannabis sector. And so in ways, we've also been forced to have to build our own programs, and our own infrastructure in order to in order to stand up business. And so I do think that where we can bridge it's wise to do so where we can, you know, US businesses that are starting to either welcome the sector, or look for ways to help start moving their legal teams or their product teams into integrating the sector. But I do think that something is important for the cannabis sector is that while we do have our own sets of rules, we have our own spirit. Yes, exactly. As you said, it's still state by state. We have also been, you know, unable to access things that you know exist for other businesses. We're still responsible to learn and take as you said, David best practices from other industries so we look at you know, So how can we how can we do better than then Big Pharma and avoid, you know, some of the truly horrific marketing, trauma and devastation that the opioid crisis has caused? Right? So how do we learn from that? How do we learn from tobacco advertising that needed to evolve in its own ways, like why repeat decades of learning that we can just look at? Now, same, we mentioned the alcohol industry, looking at how discus was formed in order to put out responsible and compliant ways to help integrate spirits and alcohol in a good way into the mainstream media. And so I think that there is there's wonderful ways that we can have are made and maintain our independent spirit bridge where we can but then also learn. And so we don't repeat some of the same mistakes, either in our enthusiasm, or, you know, just in in our, in our having blind spots, from not learning from, you know, other industries and sectors. One of our founding board members, Rachel Boykins, who is absolutely foundational in creating the full spectrum guidelines. She's a marketing executive in cannabis, but also comes from alcohol and spirits. And also, some of the quick service restaurants that are also very, very cognizant of how they communicate to children was part of building this and she's calling this report like low key this is our guidelines for Responsible cannabis advertising slash adulting. So this is us adulting as marketers and advertising.

DAVID PALESCHUCK

Which mainstream and traditional media outlets are open to partnering with the cannabis sector?

AMY DENESON

Yes, it's a great question. And I do spend, I would say, a big part of my day, communicating that you can advertise with mainstream media partners. And, and you don't have to try to do lots of work around with advertising partners, that don't accept the category yet. I do think it's something that's really important that we're expending a lot of energy, and subjecting ourselves to a lot of risk. If we're advertising on platforms that have explicitly said, they are close to this sector. So I think the first thing is to take a breather, I understand that people want to be you know, on properties that don't yet exist. I understand why as coming from traditional media and advertising, that they can be very effective. But there are so many media partners, not only within the cannabis space, and so I absolutely don't want to sleep on saying the incredible cannabis publishers that have existed and continue to create incredible content for cannabis consumers. That they are they need our support, they welcome our advertising dollars, they can be beautifully effective within markets that they serve of reaching cannabis consumers. In terms of mainstream, there are a number of mainstream publishers that are open to the cannabis sector that are included in full spectrum. And they're included not only in the stellar examples that the cannabis media council leadership board has put forward as some of their favorites, whether that's out front as an out of home. There's also you know, there's also the edibles magazine, which I think is a fantastic magazine and publication that really connects with Farm to Table communities. Our lead media partner, Hearst is the largest media company that accepts cannabis advertising. And they partnered with us for not only the launch of the cannabis media Council, but also because they have their own history that they would like to atone for, and they acknowledge it, but then also want to move forward with and really being on the right side of history, not only in in the messages that they put out, but also in the business opportunity that they of course see. And so take a look at the full spectrum report to see many, many examples of mainstream advertisers that accept but also I really love the work that the Clio awards are putting out and showing you absolutely best class of creative and then also the media publishers in which where they're showing And so whether it's a full spectrum of sport or really keeping close tabs on the, the cannabis Clio awards, and the people that they are spotlighting in their muse newsletter is a wonderful source for creativity, compliance, and also publishers that are welcoming the sector.

ADRIANA HEMANS

Segue into Audience Participation #1

DAVID PALESCHUCK

It's your chance to shine. I love saying that every week. We're curious to get the audience's thoughts. And feel free to chime in on the side. And as you do, we'll discuss some of the outcomes. And then of course, we'll ask our guest.

ADRIANA HEMANS

DAVID PALESCHUCK

How should brands engage with influencers for #paid sponsorship or promotion?

AMY DENESON

It's such an important channel or program for brands, businesses in the cannabis space. Influencer marketing, you know, also can be called testimonials, sponsored content, endorsements. And we've seen that so much of the cannabis industry, as we transition from movement industry is still being driven by word of mouth, it's by one person saying to another person, this helps me, like, you know, let go of the stigma, let go of everything you think you know about this plant, and just try it. And I do think that word of mouth or that individual recommendation from trusted sources, is really, really important for cannabis brands. And also, Adriana to your earlier point, that it's difficult to be on social media. And it's difficult to do this, but there are guidelines that we need to learn from the FTC and from other brands, that we need to engage with as cannabis advertisers, when we do pay for influence or pay for, for these testimonials. And so first and foremost, the reason why we do this, beyond that, it's a very effective way to communicate value of products or brands, and associate yourself, you know, within circles is that influencer marketing and advertising, just like all paid activations is to reach people that don't know that they don't know that they don't know you yet. It's a growth strategy. And so when you're engaging with influencers, what you're hoping to do is connect into their community and into their networks, to drive awareness and engagement with your, with your brand, your products and your properties. And the reason why you do this is one that is a proven effective strategy for driving, you know, awareness and, and, and affinities for your brands. And in order to do this compliantly is already set out with best practices from the FTC. And so we're so happy that shop Nan Malik, she is a legal absolute goddess, which I truly, like I don't usually associate lawyers with the celestial but truly like Siobhan Melia came to us, you know, who has extensive legal guidance for major companies. PMC also advises a 1906, which is one of the Cavs media council members, but also has, you know, directly looking is directly looking at how do you engage with paid media in a compliant way, and notably with influencers and absolute, you know, just gem of a treasure trove provided a sample contract for advertisers who download this report, there's a link within it, that you can access that it's a template for, you know, ways that brands can think about, not only engaging, you know, contractually with an influencer or with a with a, you know, say, you know, this incredible group has a newsletter that they send out and you can sponsor content in that newsletter, how do you do so that you set out solid expectations for what that influencer is going to say? Definitely hold on to final review, because it's really important that brands not only control their messages, but also make sure that they are 100% within their regulations and guidelines within what they need to do as a brand. But then also have an expectation of what that influencer is going to deliver on what platforms and the expected, you know, impact and ROI of those messages. And so I think it's important that we look at influencer marketing, whether that includes celebrities, or Mike Through influencers who have incredible reach within their own very specific topics, that we engage them, you know, with a with professionalism and with contractual understanding, so that we make sure that everybody stays compliant because ultimately, the advertiser and the brand will be held responsible for whatever the influencer says.

ADRIANA HEMANS

What’s the business case for media outlets to extend advertising inventory to the cannabis sector?

AMY DENESON

Certainly, the number there's three major things that I think publishers really struggle with. One is they're nervous about verifying, you know, which brands are legit, quite honestly, they're not experts in cannabis. And so they also understand that there's, you know, a lot of different actors within the space. And so it is, it is something that, you know, the cannabis media Council and other trade organizations you provide is verification that the business that's coming to you is, is doing their absolute best to be on the right legal side of history, right? The second thing is that they're worried about brands, their other current advertisers, either feeling threatened, or upset that they might be sitting next to a cannabis brand. And so how do we equip them with the arguments or with the business case, that they want to uplift this category, for a revenue stream, just to be very frank about it, but also, because their audiences are already open to it. And so publishers are serving their readers and their audiences and delivering content to them that's relevant and authentic. And so they not only for revenue, but also to honor the lifestyle and the perspectives and the desires of their readers. And then the last part, to that point, is that the reader's one we've spoken, that the majority of Americans are open to cannabis and you know, are interested or at least curious about, you know, where they can learn more about it, or access it in there, in their local markets, is that most of these publishers that are considering taking on cannabis, as advertisers are already covering it in editorial, they're already writing about it. And so their audience already expects this from them. And so why not make money? Why not help support their editorial efforts through the business side of advertising, since their audiences already open to it?

DAVID PALESCHUCK

Audience: It’s your turn to shine!

ADRIANA HEMANS

Amy, where can our listeners get a hold of The Cannabis Media Council’s report?

AMY DENESON

Thank you for that. Yes, please, please take a look at cannabis media council.com. Not only are we under the guidelines section there, it is free for now. But also worth noting that we are a Trade Council, we are in the process of applying for a federal 501 C 3. But for right now we are set up as a nonprofit on the state level and through a fiscal sponsor, we are able to take in tax deductible donations. And so if this guide serves you and is a value to you, we will be so grateful if you would also consider making a tax deductible donation to the council there's very little that's tax deductible in cannabis. But we are and the entire council is donating their time. So both all three of the co-founders, all of our founding board, all of our advisors are donating their expertise. And so we deeply appreciate you not only learning from this incredibly valuable resource that we've put out, but if you can support our efforts, 100% of your donations, go to building additional creative for the campaign. I'm high right now, as well as deploying it on media.

DAVID PALESCHUCK

Thank you, Amy. We appreciate what you do and all your insights and knowledge.

ADRIANA:

Thank you, Amy.

AMY DENESON

Thank you, everybody, for sure.

DAVID PALESCHUCK

That’s our show for today. We’ll be back again next Thursday, July 20th when we’ll be chatting about "Cannabis and Veterans: Healing Heroes" with Bob Patton, General George Patton’s grandson and Founder of Green Meadows, a Massachusetts vertically integrated cannabis brand.

If you can’t catch us live on LinkedIn, you can find Branding Bud Live on YouTube, and now listen to us on Apple Podcasts, Spotify, and other podcast platforms.

ADRIANA:

We just dropped a link in the chat for next week’s episode. Hit that button to register so you don’t miss it. If you miss us in the meantime, you can re-watch today’s episode, or any of our previous episodes, on our LinkedIn page, Branding Bud Live, or on our YouTube channel. Please give us a follow on LinkedIn to stay on top of everything Branding Bud Live.

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DAVID PALESCHUCK

And don’t forget to check out cannabis’s best-kept secret at www.brandingbud.com

Thank you everybody!

ADRIANA HEMANS