What Does a Cannabis Marketing Company Do (Is It Worth the $)?

Running a cannabis dispensary comes with unique challenges. You've secured your license, designed your store, sourced products, and hired staff—but how do you consistently get customers through the door? At what point does it make sense to bring marketing expertise rather than handle it yourself?

Many dispensary owners start by managing their dispensary marketing efforts. This DIY approach works in the beginning, but several signs indicate it might be time to bring in specialized help:

You're spending hours on marketing with limited results

It may be time for expert assistance if you dedicate significant time to social media, email marketing, or website updates without seeing corresponding growth. A cannabis marketing company brings focused expertise that can generate better results more efficiently than a DIY approach.

Your competitors seem to be everywhere

When competing dispensaries appear in local searches, have growing social media communities, or seem to be capturing more market share, they might work with dedicated marketing partners who understand the cannabis landscape.

You're unsure how to measure marketing success

If you're implementing marketing tactics without clear metrics for success, you may be wasting resources on ineffective strategies. Cannabis marketing companies establish measurable goals and tracking systems to ensure your investment delivers real business growth.

You're ready to scale but lack the marketing infrastructure

As you plan expansion—whether adding locations, expanding delivery radius, or increasing product lines—your marketing needs become more complex. A marketing partner can build scalable systems that grow with your business.

You're missing opportunities in digital channels

The digital landscape for cannabis businesses is nuanced but incredibly valuable. If your website isn't generating leads, your email list is stagnant, or your social presence is inconsistent, you're likely missing crucial opportunities that marketing experts can help you capture.

Cannabis marketing companies typically offer a comprehensive suite of services tailored specifically to dispensary needs:

Digital Marketing Services

Website Development and Optimization

A dispensary website is often the first touchpoint for potential customers. Cannabis marketing companies build websites that are not only visually appealing but also:

• Optimized for local searches

• Mobile-friendly for on-the-go customers

• Designed with customer journey mapping

• Built with e-commerce functionality for online ordering

• Conversion-focused to turn visitors into customers

Cannabis SEO

Search engine optimization for dispensaries requires specialized knowledge. Cannabis SEO experts develop strategies to help you appear in local search results, focusing on:

• Local keyword optimization

• Google Business Profile management

• Location-based content development

• Technical SEO implementation

• Link building with industry-appropriate websites

Content Marketing

Content that educates and builds trust is particularly valuable in the cannabis industry, where misinformation abounds. Marketing companies create:

• Educational blog content about products and consumption methods

• Downloadable guides for new consumers

• Staff spotlights and behind-the-scenes content

• Industry news and updates relevant to your customers

• Visual content that meets industry standards

Social Media Management

Building an organic social media presence remains valuable when appropriately managed. Cannabis marketing companies:

• Develop appropriate content strategies for each platform

• Create engaging, shareable content

• Manage community engagement and responses

• Implement risk mitigation strategies

• Track performance metrics to refine the approach

Traditional Marketing Services

Several conventional marketing channels remain effective for dispensaries:

In-Store Marketing

The dispensary experience itself represents a significant marketing opportunity:

• Menu design and optimization

• Store layout recommendations

• Point-of-sale promotions

• Staff training on product knowledge and upselling

• Branded packaging and merchandise design

Local Event Marketing

Community integration helps dispensaries build local credibility:

• Sponsorship of local events

• Educational workshops and seminars

• Vendor days and product demonstrations

• Community service initiatives

• Industry networking events

Analytics and Tracking

Data-driven decision-making separates successful dispensaries from struggling ones:

• Custom reporting dashboards

• Traffic and conversion tracking

• Sales data analysis

• Customer journey mapping

• ROI calculations for marketing initiatives

Cannabis SEO Explained

SEO remains one of the most valuable dispensary marketing channels because it doesn't rely on paid advertising platforms. A cannabis SEO agency implements multi-faceted SEO strategies, including:

Local SEO Focus

Most dispensary customers search within a small radius of their location. Cannabis marketing companies optimize for:

• "Near me" searches

• Neighborhood-specific keywords

• Map pack rankings

• Location-based content

Technical SEO Implementation

Behind-the-scenes optimizations make a significant difference:

• Site speed improvements

• Mobile optimization

• Schema markup for dispensaries

• Site architecture planning

• Secure browsing implementation

Content Strategy Development

Content remains king for cannabis SEO:

• FAQ development addressing common customer questions

• Location pages for multi-location dispensaries

• Product category pages optimized for search

• Educational content that builds authority

• Strategic internal linking

Website Optimization for Dispensaries

Your website is a marketing tool and often a direct sales channel. Cannabis web design companies ensure your site:

• Converts visitors to in-store customers or online orders

• Educates first-time cannabis consumers

• Showcases your product selection effectively

• Answers common questions to reduce staff burden

• Implements proper user experience design

Acquiring new customers costs 5-25 times more than retaining existing ones. Cannabis email marketing experts implement strategies to maximize customer lifetime value:

Email Marketing for Cannabis Dispensaries

Email marketing remains highly effective for dispensaries:

• New product announcements

• Special offers and promotions

• Educational content series

• Re-engagement campaigns for lapsed customers

• Birthday and anniversary rewards

Marketing companies manage the technical aspects of email marketing:

• Building effective subscription systems

• Maintaining list hygiene and deliverability

• Segmenting customers for relevant messaging

• A/B testing for continuous improvement

• Analyzing performance metrics

SMS Marketing Programs

With 98% open rates, text message marketing delivers immediate results:

• Flash sale notifications

• Limited inventory alerts

• Loyalty point updates

• Re-ordering reminders

• Delivery status updates

Cannabis marketing companies implement these programs while navigating industry best practices for text messaging.

Loyalty Program Development

Structured loyalty programs drive repeat business:

• Points-based systems

• Tiered membership programs

• Referral incentives

• Birthday/anniversary rewards

• Early access to new products

Email marketing partners help select and implement the right loyalty technology, design program structure, and analyze performance.

Average Marketing Budgets for New Dispensaries

Cannabis dispensaries typically allocate a percentage of their revenue to marketing initiatives, with higher percentages during the launch phase that gradually decrease as the business establishes itself. For new dispensaries, a strategic allocation might look like:

Sample First-Year Marketing Allocation:

• First 3 Months: 8%–10% of revenue

• Next 3 Months: 6%–8% of revenue

• Last 6 Months of Year 1: 4%–6% of revenue

• Long-Term Goal (Year 2+): 2%–4% of revenue

For context, this often translates to:

• Startup phase (pre-opening): $20,000-$50,000 for initial branding, website development, and launch campaigns

• Early operations (first year): $3,000-$10,000 monthly for ongoing marketing activities

These numbers vary significantly based on:

• Market competitiveness

• Location (urban vs. rural)

• Business size and revenue targets

• Growth objectives

The front-loaded approach makes strategic sense—you'll need to invest more heavily in building awareness and acquiring your initial customer base, then can gradually reduce spending as you build loyalty and word-of-mouth referrals begin contributing to growth.

How to Allocate Marketing Dollars Effectively

Cannabis marketing companies help prioritize spending for maximum impact:

For new dispensaries:

• 30-40% on website development and SEO

• 15-20% on local awareness campaigns

• 15-20% on loyalty program setup and initial promotion

• 10-15% on content development

• 10-15% on staff training and in-store marketing

For established dispensaries:

• 25-30% on customer retention programs

• 20-25% on SEO and content marketing

• 15-20% on new customer acquisition

• 10-15% on brand development

• 10-15% on analytics and performance optimization

ROI Expectations for Different Marketing Channels

Understanding typical returns helps set realistic expectations:

SEO and Content Marketing

• Timeline: 3-6 months to see significant results

• Expected ROI: 5-10x investment over 12 months

• Key metrics: Organic traffic growth, local search visibility, conversion rate

Email Marketing

• Timeline: Immediate results that build over time

• Expected ROI: 3-5x investment

• Key metrics: Open rates, click-through rates, direct attributable sales

Loyalty Programs

• Timeline: 1-3 months to establish ongoing benefits

• Expected ROI: 2-4x investment through increased purchase frequency

• Key metrics: Customer retention rate, average order value, visit frequency

Social Media

• Timeline: 2-4 months to build momentum

• Expected ROI: Primarily brand building with indirect sales impact

• Key metrics: Engagement rate, community growth, referral traffic

Case Study: From Struggling to Standout

An Ohio dispensary was struggling to differentiate itself in a competitive market. Despite high-quality products and knowledgeable staff, foot traffic remained stagnant six months after opening.

After partnering with a cannabis marketing company, they implemented:

• A redesigned website with a dual shopping experience for both recreational and medical patients

• A focused local SEO strategy targeting neighborhood-specific searches

• Optimized their Google Business Profile for navigational and local searches

Results after six months included:

• 30% increase in website traffic

• 33% increase in profile visibility

• 15% increase in-store visits

Key Performance Indicators (KPIs) to Track

Working with a cannabis marketing company means establishing clear metrics for success:

Traffic Metrics

• Website visitors (total and unique)

• Store foot traffic

• Source attribution (how customers found you)

Engagement Metrics

• Email open and click rates

• Social media engagement

• Time on site

• Pages per session

Conversion Metrics

• Conversion rate (website visitors to customers)

• Cost per acquisition

• Online orders

• First-time customers

Revenue Metrics

• Average order value

• Customer lifetime value

• Revenue by channel

• Return on ad spend

Common Pitfalls to Avoid

Even with expert help, be aware of these common mistakes dispensaries make:

Unrealistic Timeline Expectations

Marketing results typically take time to materialize. Expect 3-6 months before seeing significant ROI from many strategies.

Inconsistent Brand Messaging

Ensure your in-store experience aligns with your digital presence to avoid disconnects that confuse customers.

Neglecting Customer Retention

Many dispensaries focus heavily on acquisition while ignoring the higher ROI opportunity of retention marketing.

Failing to Track Results

You can't determine which marketing channels deserve more investment without proper attribution.

The decision to partner with a cannabis marketing company ultimately comes down to three factors:

1. Your current growth rate vs. goals

Marketing expertise can bridge the gap if your dispensary isn't growing at your target rate despite offering quality products and services.

2. Your team's expertise and bandwidth

Marketing requires specialized skills and consistent attention. If your team lacks either, an outside partner brings immediate capabilities.

3. Your competitive landscape

Professional marketing often differentiates between thriving and merely surviving in saturated markets. For most dispensaries, the investment becomes worthwhile when:

• You're generating at least $50,000 in monthly revenue

• You have growth goals beyond 10% annually

• You're operating in a market with three or more competing dispensaries

• You've established operational efficiency and product-market fit

When to Start Small vs. Go All-In

Not ready for a full-service engagement? Consider starting with:

• A marketing audit to identify opportunities

• Focused projects addressing specific needs (website redesign, loyalty program setup)

• Reduced-scope monthly retainers covering only essential services

As results generate additional revenue, you can expand the partnership to include more comprehensive services.

A cannabis marketing company offers specialized expertise that can significantly accelerate your dispensary's growth through strategic digital marketing, customer retention programs, and data-driven optimization.

The investment makes financial sense when:

• It allows you to focus on core business operations

• The expected ROI exceeds the cost

• Your internal team lacks specific marketing expertise

• You're ready to scale systematically

If you're considering a marketing partnership, start by:

1. Clearly defining your growth goals

2. Auditing your current marketing efforts

3. Interviewing potential partners about their cannabis-specific experience

4. Checking references from other dispensary clients

5. Starting with a defined project before committing to a long-term relationship

With the right partner, your marketing investment should deliver measurable returns that far exceed the costs while positioning your dispensary for sustainable long-term growth.

Are you looking for cannabis marketing experts to unlock your next phase of growth? Book a call for a free marketing audit to see where you're leaving money on the table.