CBD company Sagely Naturals has taken its first foray into television and streaming advertising — a big development for the brand considering cannabis brand marketing regulations are still murky.
Thanks to the 2018 Farm Bill, which legalized hemp, the six-year-old, California-based company rolled out a six-week, 30-second video spot running across digital, OTT and local linear television in California. The spot by Willa Creative Agency features active women using Sagely Naturals to relax and recover.
The video spot is a first for the company and per co-CEO Kerrigan Behrens, after seeing a lift in brand awareness, there are plans to pursue more video advertising in the future. “That’s been a dream since we started. It didn’t make sense to create a commercial for a long time because there was nowhere to air it,” Behrens said, referring to the passing of Farm Bill.
It’s unclear how much the CBD brand spent on the ad as Behrens declined to offer specific figures. However, she said Sagely aims to dedicate at least one-third of its marketing budget toward upper funnel marketing tactics, including earned media, sampling programs and audio. She added that there are no plans to increase the percentage of video ad spend currently, but as revenue grows, the budget will shift accordingly.
In the past, Sagely Naturals has focused more on retail marketing strategies than digital, given CBD advertising restrictions are still in place. For example, Facebook’s policy states that ads promoting the sale or use of recreational drugs are prohibited. There’s a similar policy at Twitter and Google-owned YouTube, as previously reported by Digiday. The brand is available in 16,000 stores nationwide, including Target, Sprouts, Rite Aid and most recently, Kroger.
Just before the pandemic, Sagely launched an out-of-home billboard campaign in Los Angeles, which are notoriously hard to measure, per Behrens.
“That’s been an evolution of six years of experimenting, trying to figure out what we are and are not allowed to do from an advertising standpoint,” Behrens said. “We’ve never really invested heavily in Google or Facebook because we’re not really allowed to. It’s never been a key part of our strategy.”
With that in mind, Behrens says, digital video has proven to be an effective marketing tool worth pursuing in 2022. And as more brands look to diversify their media spend away from mainstay digital marketing channels like Facebook and Google, Kelly Taylor, lead content strategist at Dagger agency, suspects many will turn to digital video to reach shoppers.
The numbers tell a similar story. According to eMarketer, the connected television ad spend is expected to increase by 59.9% to $14.44 billion by the end of 2021.
“Video is incredibly customizable and as capabilities in the space continue to expand, from 360 to VR, and inventory of platforms continue to grow as more consumers are turning to digital content, there’s room to scale based on resources and budgets,” Taylor said via email.
The key is ensuring that brand videos have context, Taylor says, noting that brands can miss the mark and ultimately turn shoppers off if content feels disconnected from the user experience. “The goal is to entertain and engage consumers, not detract from their experience,” she said.
At Sagely, Behrens says the team is parsing through data that will measure how the ad performed in terms of retail sales as the brand plans for more video it in its marketing mix.
“Every indication that we’ve gotten is that this commercial was really effective,” she said. “There are absolutely plans to utilize the commercial through 2022.”
Retail brands rush to cover abortion care, but not all of their workers may be covered
What’s not immediately clear from some of these post Roe announcements is how many employees will be covered by these new policies.
Days Inn seeks unique ways to stand out as people return to traveling
Days Inn is introducing a new, limited-edition amenity: a pillow that compliments guests. It's part of a strategy to find unique ways to stand out and help drive brand awareness.
‘Clients are being cautious’: Roe vs. Wade overturn has advertisers evaluating ads, pausing spending
Some marketers, agency execs are also reconsidering their blocklists, adding phrases related to the Supreme Court to their lists to stem potential brand safety issues.
SponsoredWhy the caliber of content is paramount for advertisers
Agata Brodniewska, brand safety manager, Dailymotion Content is king when attracting consumers but is equally essential when courting advertisers. While both stakeholders want many of the same things, they most notably want relevant content they can count on to deliver an accurate and honest message without confusion or misinformation. This is especially important for advertisers […]
‘We anticipate this percentage will increase’: QuickBooks will allocate more fees to LGBTQ+ influencers
DTC business QuickBooks has found that the more diverse its influencer roster gets, the more effective it is, with content from these influencers more likely to spark a relevant response from viewers.
Why brands want to make NFTs useful, rather than profitable amid the crypto downturn
Despite the volatility in the crypto markets, consumer brands and e-commerce platforms are trying new ways to evolve NFTs from being novel collectibles to something more useful for both consumers and companies.