Why it matters: Cresco Labs is set to become the first cannabis company to launch cannabis advertisements on Spotify, the popular audio streaming subscription service. This move allows the company to reach a large audience in a targeted manner, promoting its chain of dispensaries called Sunnyside. The ads will specifically target Spotify listeners in Illinois, where recreational cannabis is legal.
What they are saying: Cresco Labs’ National Retail President, Cory Rothschild, expressed excitement about the partnership, highlighting the opportunity to reach a broad audience through audio streaming services like Spotify. He also emphasized the data ecosystem and sophisticated marketing strategies that the company has developed. Matt Pickerel, Senior Director of Performance Marketing at Cresco Labs, stated that the company follows the letter of the law when it comes to cannabis advertising and serves ads only in states where the substance is legal.
The big picture: Advertising has been a challenging area for cannabis companies due to cannabis’s federal prohibition in the United States. However, Cresco Labs has developed a nuanced podcast advertising strategy and only operates in states where cannabis marketing is legal. With this partnership with Spotify, Cresco Labs aims to normalize and professionalize the cannabis industry and continue building national brands.
What to watch: It will be interesting to see how successful Cresco Labs’ cannabis advertising campaign on Spotify will be and whether it will encourage other cannabis companies to explore audio streaming platforms as advertising channels. Additionally, industry observers may pay attention to the impact of this partnership on the normalization and destigmatization of cannabis.
My take: This move by Cresco Labs to launch cannabis advertisements on Spotify shows the increasing acceptance and mainstreaming of the cannabis industry. By leveraging a popular audio streaming platform like Spotify, Cresco Labs can effectively reach its target audience and promote its dispensaries. This partnership also exemplifies the company’s commitment to complying with regulations and operating within legal boundaries. It will likely be a positive development for Cresco Labs and could pave the way for more cannabis advertising opportunities in the future.
