15.52%

increase in spending on days when a text message campaign is sent

$4.20

Average ROI per text message sent

1 day!

to gain a ROI on monthly subscription

nevada cannabis market breakdown

Recreational cannabis use became legal for adult use in Nevada on New Years Day, 2017, following the passage of “Question 2” on the 2016 ballot. Since, the state’s cannabis market has developed beyond most expectations, and Las Vegas emerging as the industry’s stronghold.

According to Statista, legal cannabis sales reached nearly $700 million in 2020, the most yet, and a promising sign in the market’s push toward $1 billion in annual sales. It is a modest $50 million increase from 2019.

This increase is especially notable given the COVID pandemic’s effects on tourism and foot traffic in Nevada and especially in Las Vegas. With Las Vegas tourism slated to rebound and the continuing growth in recreational cannabis’s accessibility, Nevadan cannabis businesses have many good reasons for optimism.

Despite the success of the legal cannabis industry in Nevada, the illicit market has remained quite active. While the exact scope and effects of the illicit market is unknown, it is known to make up a significant portion of all Nevada cannabis sales. If, in the years ahead, the legal market’s growth limits the illicit market, expect legal cannabis companies and retail sales to expand.

Another promising development exists in the Nevada state legislature, where, recently, bills allowing cannabis consumption lounges, both in dispensaries and free-standing, have been approved. This presents yet another opportunity for growth.

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Marketing in Nevada’s Cannabis Industry

Nevada’s cannabis market is unlike that of any other of the states that have legalized recreational consumption. With nearly half of the state’s sales centered in Las Vegas, a sophisticated marketing strategy is a necessity for any business that aspires to differentiate themselves among the density of customers in Las Vegas. Retailers must identify their target clientele and cater to them, as tourists and locals are unlikely to be persuaded with an identical approach.

Further, businesses must be cautious about complying with Nevada’s regulations. Ranging from licensing restrictions to advertising guidelines, businesses must avoid a range of infractions, including anything that may be interpreted as advertising to children.

Per Nevada Senate Bill 344, businesses are prohibited from using “packaging containing an image of a cartoon character, mascot, action figure, balloon, fruit or toy.” With such broad restrictions in place, retailers must consider other marketing tactics beyond large-scale mass advertisements.

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Cannabis marketing with springbig

With springbig’s marketing suite, businesses can take a holistic approach to targeting and retaining their clientele, certifiably enhancing their chances of success in a crowded market, all while avoiding the stress of compliance.

Our 360 Solutions™ platform ensures you are compliant by staying on top of all relevant regulations, even as they change, just so you do not have to. Dispensary marketing can be stressful. We take the edge off.

Considering the aforementioned spike in per-visit spending across dispensaries, there is no better time to adopt springbig’s loyalty program, which rewards your customers with a point-per-dollar rewards program. Rather than other rewards programs which reward customers on a point-per-visit “punch card” basis, the springbig loyalty program incentivizes higher-paying visits and rewards high-spending customers. With rewards racked up and easily accessible in their digital rewards wallet, customers are inclined to return to your dispensary instead of the competition – and have been proven to do so.

With springbig’s marketing suite, expect results and a proven R.O.I. to help your business thrive.

To show you just how effective text message marketing can be, we analyzed the marketing performance of Thrive, a dispensary chain in Nevada. We looked to see the increase in spend on days when text messages were sent, the ROI, and how long it took to gain ROI.

Oregon Market Breakdown

Green Trees Against Body of Water Photo

Like its Pacific Northwest neighbor Washington, Oregon is a trailblazer in the world of legalized recreational cannabis. Despite some early challenges optimizing the licit market, the state seems back on track, recording all-time highs in the second quarter of 2021 even as pandemic restrictions relax. April 2021 sales topped $110 million, an astounding 77% increase from April 2019.

As with any state, regulation is geared toward promoting the legal market in order to maximize the state’s tax revenue. In Oregon, where the illicit market’s activity has slowed the growth of the legal market, lawmakers and the Oregon Liquor Control Commission (which oversees the cannabis market) have worked to optimize regulation in favor of legal sellers, and the effects are finally observable.

Unlike other states, Oregon has historically been extremely liberal in its issuance of licenses. Until recently, essentially anyone intent on cultivating or dispensing cannabis could receive a license. The result was a surplus of weed, a dream for many, perhaps, but a problem for the success of legal cannabis businesses.

In 2019, the Oregon Senate passed legislation aimed at reducing the mass cultivation in an effort to steady the legal market, and the efforts have been mostly successful. As of 2021, the Oregon cannabis business is back on track, dispensing more legal weed to more customers than ever.

Oregon, like Washington and Colorado, demonstrates the viability of a mature cannabis market.

Long Exposure Photography of Portland

Cannabis marketing in Oregon

With business booming and the trends pointed upwards, cannabis businesses must position themselves well within the crowded Oregon market, especially in the hub of Portland. However, as with any state cannabis market, restrictions exist.

Oregon’s advertising and marketing restrictions are relatively lax, as compared to other states, but cannabis companies still have to proceed cautiously with their marketing approach. The Liquor Control Commission (OLCC) has a number of regulations targeted at cannabis advertising.

Per the OLCC Bulletin CE2017-03, cannabis advertising must adhere to the following rules, among others:

Cannabis advertisements cannot:

  1. Contain any false or misleading statements.
  2. Target or be especially appealing to minors.
  3. Imply the safety of cannabis products due to lab results.
  4. Suggest that marijuana has particular curative or therapeutic effects.
  5. Encourage the use of marijuana for its intoxicating effects.

This is not an exhaustive list, so any company in the cannabis industry should review all relevant regulations before engaging in cannabis marketing.

Black and Gray Laptop on Black Sectional Couch

Even with a relatively lax set of restrictions, the regulations in Oregon make having a traditional marketing approach, like public advertising and digital ads, risky. With the line between acceptable and unacceptable rather blurry, cannabis companies have to proceed with caution when advertising.

However, with such a crowded market and businesses already vying for a piece of the booming market, businesses cannot just sit back and hope for success. Fortunately, springbig offers a dynamic marketing solution.

Cannabis marketing with springbig

With springbig’s marketing suite, businesses can take a holistic approach to targeting and retaining their clientele, certifiably enhancing their chances of success in a crowded market, all while avoiding the stress of compliance.

Our 360 Solutions™ platform ensures you are compliant by staying on top of all relevant regulations, even as they change, just so you do not have to. Dispensary marketing can be stressful. We take the edge off.

Considering the aforementioned spike in per-visit spending across dispensaries, there is no better time to adopt springbig’s loyalty program, which rewards your customers with a point-per-dollar rewards program. Rather than other rewards programs which reward customers on a point-per-visit “punch card” basis, the springbig loyalty program incentivizes higher-paying visits and rewards high-spending customers. With rewards racked up and easily accessible in their digital rewards wallet, customers are inclined to return to your dispensary instead of the competition – and have been proven to do so.

With springbig’s marketing suite, expect results and a proven R.O.I. to help your business thrive.

To help show just how effective springbig can be, we took a look at Oregon-based dispensary Kaleafa to see just how effective springbig is. Take a look at the numbers below.

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