Due in part to worries that current advertisers would object to having their content placed next to marijuana ads, mainstream advertising platforms have been hesitant to cater to a sector that is currently prohibited by the federal government.
Twitter previously restricted advertising to CBD topical goods produced from hemp, while Facebook, Instagram, and TikTok all have had a “no cannabis advertising policy” because marijuana is still prohibited on a national level.
Elon Musk’s media frenzy when he smoked a joint while appearing on Joe Rogan’s show, added weight to rumors that his purchase of Twitter might make the site more cannabis-friendly. The business recently modified its policy to permit U.S. cannabis businesses to advertise on its platform, subject to several limitations.
Twitter’s limitations on Marijuana ads
For many cannabis businesses, being able to reach their potential consumers without using any sort of loopholes is a game-changing development, according to Amy Deneson, co-founder of the Cannabis Media Council, a trade organization devoted to cannabis education.
However, cannabis firms must meet certain conditions and have their ads pre-approved by Twitter to post on the platform. The prohibition against cannabis enterprises promoting or offering for sale cannabis products is arguably the most important one.
Among the various specifications cannabis businesses must follow are:
- Possess a license issued by the relevant authorities
- Only direct advertising to regions where they have permission to advertise goods or services online.
- not direct ads to people under 21
- Take complete responsibility for adhering to all rules and regulations that may apply.
Generally, no health claims, appeals to minors, or portrayals of cannabis use are permitted in cannabis marketing.
However, because of state regulations that prohibit online cannabis advertising, not all cannabis businesses will be able to use Twitter for advertising despite this change in its policy.
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Apart from allowing ads, Twitter is aggressively pursuing the cannabis market.
Most ad networks typically require purchases between $5,000 and $10,000. But Twitter does not have minimal requirements for cannabis businesses.
Up through the end of March, Twitter will match every dollar spent on advertising by cannabis businesses one-to-one. Hence, if a company uses the platform to conduct a $50 campaign, it is really doing a $100 campaign.
Twitter expects that advertising revenue from the sector will become a significant source of revenue for the platform.
Concerns about marijuana advertisements
Conventional ad platforms have been hesitant to cater to a sector that the federal government has prohibited. That’s in part because they are worried that their current clients won’t want their ads to appear next to cannabis advertisements. They are also worried about how to verify whether a prospective advertising is a legitimate company.
Given how recently Twitter’s policy has changed, it’s difficult to predict how long it will take a cannabis brand to complete the validation procedure.
Twitter’s incentive scheme runs through the end of March, and Deneson anticipates that the social media site will accelerate this evaluation process.
Twitter will have to spend money determining whether cannabis advertisements adhere to its rules, which can be challenging to define. What, for instance, exactly makes an advert interesting to children?
There will be a human factor in this decision-making, according to Deneson.