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The Evolving Cannabis Culture: a Growing OOH Category September 10, 2018

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The Evolving Cannabis Culture: a Growing OOH Category September 10, 2018 The Evolving Cannabis Culture: A Growing OOH Category September 10, 2018 Ken Klein, OAAA As the legal cannabis industry buys more advertising, this emerging category is spawning niche ad agencies and new regulations. Thirty states and the District of Columbia currently have laws broadly legalizing marijuana in some form, led by Colorado and Washington State in 2012. The first retail shop in Washington State opened in mid-2014. Overall spending on legal cannabis in Product ad in Oakland, CA North America is projected to grow from $9.2 billion in 2017 to 47.3 billion a decade later, according to research published by Forbes. The recreational cannabis market will generate two-thirds of the spending; medical marijuana accounts for the remaining 33 percent. By 2016, cannabis was the fastest growing category in the Seattle OOH market, which spans Olympia and Bellingham, says Korbe Palmer of Lamar Advertising Company. The cannabis category now generates nearly 8 percent of Lamar’s sales in that market. Agencies Branding experts and full-service ad agencies are guiding this start-up industry through complicated, evolving marketing rules. • “Let’s grow together,” beckons the Foot Traffik agency in San Francisco, which calls itself an “ROI focused marijuana dispensary marketing agency.” • In Denver, Cannabrand describes itself as “the world’s first cannabis marketing agency.”Digital 303 wants “to help turn your dreams into stunning visuals.” COHNNABIS is the cannabis-focused creative offshoot of brand agency COHN. • Seattle-based Canna Ventures asks “Are you ready to grow?” Regulations Advertising rules vary state to state, including for OOH ads (click here for a state-by-state list). The ad scheme for cannabis borrows from marketing protocols for other highly regulated products alcohol and tobacco. The National Association of Cannabis Businesses (NACB) pushes self-regulation. Launched in 2017, NACB is led by president Andrew Kline, who served as an Assistant US Attorney and a senior advisor to Vice President and then-Sen. Joseph Biden (D-DE). September 10, 2018 Page 2 NACB ad standards say: no false claims, don’t encourage underage consumption, don’t show consumption in ads, stay away from transit advertising, and medical marijuana is for patients. A year ago, Albuquerque rejected a medical marijuana ad on city buses. In November, the San Francisco Municipal Transportation Agency voted to ban recreational pot ads on its buses. Cheryl Brinkman, chair of the local transit board, said San Francisco was aligning with standard advertising practices. Billboard ads in Washington State, says Palmer at Lamar, typically display cannabis- business names, logos, and directions. New York State’s regulation of ads for medical marijuana stifles exaggerated claims, unsubstantiated research, and trash talk about competitors’ products. Oregon requires disclaimers: • “Do not operate a vehicle or machinery under the influence of this drug” Billboard near Seattle-Tacoma Airport • “For use only by adults twenty-one years of age and older” • “Keep out of the reach of children” Colorado’s marijuana regulations ban billboards ads: “...it is unlawful for a retail marijuana establishment to engage in advertising that is visible to members of the public from any street, sidewalk, park or other public place.” Meanwhile, Colorado’s Department of Transportation has won national recognition for the creative excellence of its “don’t drive high” billboards and wall signs, designed by the award-winning Denver agency Amélie. Colorado’s public health agency also tasked Amélie to create multi-media campaigns for responsible use of marijuana. About half of Colorado’s Adopt-A-Highway signs are sponsored by cannabis enterprises. Olivia Mannix, founder of the Denver-based CannaBrands marketing agency puts it this way: “We can’t really have outdoor billboards, but we can have our names on these Colorado DOT signs. Cannabis marketers have to be extra creative and strategic in all of their marketing efforts” due to restrictions on advertising. Lawyers Just as some ad agencies specialize in cannabis, law firms are eager to advise this newly legal, growing industry. Well-known law firms which have handled regulatory issues for OOH media companies now also tout their ability to counsel cannabis growers and sellers. Duane Morris’ cannabis webpage features a blog and promotes its cannabis webinar series. Marketing Outside the Box with OOH September 10, 2018 OAAA When marketers want to reach targeted audiences in unexpected places, they turn to non-traditional OOH. From escalators to manholes, brands try creative locations to place their ads. Amusement Parks Most amusement parks and theme parks allow outside companies to advertise within their gates. Walt Disney Parks and Resorts has a long history of partnering with outside brands. The Six Flags chain of parks has an extensive network of digital and traditional OOH placements available to catch the eyes of park-goers waiting in lines. 3D floor paintings in Orlando promote the new Pandora experience Airports To target newly arrived tourists, Oregon’s Seven Feathers Casino Resort partnered with the nearby Rogue Valley International-Medford Airport, painting the baggage carousel to look like a giant roulette wheel. Following the legalization of recreational marijuana California, Organa Brands, one of the largest cannabis companies in the US, launched a public service campaign to warn travelers about flying with cannabis. Airport security trays at Los Angeles International Airport advised travelers to “leave it in California.” Restrooms Public restrooms represent an opportunity to get the attention of a hyper- targeted audience. Car-sharing platform Uber uses restrooms to reach people who may need a sober ride home. Some restroom sink faucets have built in screens that detect when a person steps up to wash their hands. A targeted ad is then delivered through a programmable network. The North Dakota Air National Guard recently issued an RFP searching for an agency to handle a 12-month campaign, specifically requesting the media plan include billboards and restrooms. It said: “We are seeking a unique, high-traffic medium that is available across the entire state and feel that restroom advertising provides a captive audience in a large number of locations that will meet our target demographics.” September 10, 2018 Page 2 Public Transportation While standard transit ads such as bus shelters and subway posters are effective at grabbing attention, some brands use other areas within public transportation stations to catch eyes and start conversations. To promote the new season of Ozarks, Netflix used wall decals in major metro transit hubs to create the illusion of money hidden in the walls. At Penn Station in New York City, PBS took over all sets of stairs to encourage commuters to vote for their favorite book and watch The Great American Read. See examples of the other many OOH formats here. Have other examples of out of the box OOH? Send case studies, photos, and videos to Nicole Randall at nrandall@ oaaa.org. Signs on the Right of Way: Right vs Wrong September 10, 2018 Hunter Odom, OAAA Pressure is constant to liberalize longstanding restrictions against commercial use of highway right of way, as government looks for new ways to fund transportation. Debate about the future use of public right of way begs the question: what is allowed under current rules? Attorney Hunter Odom (Louisiana State University Law, 2017) researched this question for OAAA. Signs in the highway right of way The GEICO Gecko can appear on highway sign, but ads are not allowed. If this is confusing, a new report will explain. The right of way guide: • Defines right of way • Explains federal and state authority to control right of way • De-mystifies the thick, complicated Manual that sets sign standards • Lists what signs are allowed . and why (LOGO signs are exits, Tourist Oriented Directional Signs, and sponsorship signs) Under current rules, advertising is not allowed on public right of way. The policy rationale is that right of way was acquired with public funds for a public purpose; advertising is considered a commercial purpose. Debate about what constitutes public purpose will continue, and even intensify. Proponents of relaxing current rules claim that monetizing the right of way to help pay for transportation would enhance “public purpose.” This report does not resolve this debate, nor take sides. It lays out the history of regulation of the right of way, and describes the rules as they are now. Read the full report here. .
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