Chicago’s Cresco Labs Inc. is set to be the pioneer in launching cannabis advertisements on the global audio streaming platform Spotify, which boasts over 551 million users. This was confirmed in a recent announcement made by the company.
The promotional campaign, spotlighting their dispensary chain, Sunnyside, encompasses 30-second audio spots and digital banners leading to the brand’s e-commerce site. Initially, these advertisements will target Spotify users in Illinois, a state where recreational use of cannabis is legalized, stated the company.
Cresco Labs’ National Retail President, Cory Rothschild, highlighted the significant opportunity this collaboration represents in terms of targeted marketing and industry normalization, leveraging Spotify’s platform for efficient and compliant advertising in Illinois.
Despite the regulatory challenges that have plagued the advertising efforts of cannabis companies in the U.S, Cresco Labs strategically markets only in states where the product and its promotion are legal. This is in line with the company’s commitment to adhere to existing laws, as emphasized by their Senior Director of Performance Marketing, Matt Pickerel, in a previous interview with Marketing Brew.
The company has been cautiously exploring podcast advertising, dedicating about 15% of its marketing budget to this medium. They rely on basic metrics such as impressions and website visits to gauge the effectiveness of their campaigns.
Furthermore, Cresco Labs aims to revolutionize and standardize the cannabis industry, focusing on creating nationally recognized brands and offering a customer-centric retail experience. This encompasses community engagement, workforce development, and initiatives to foster a responsible and robust cannabis industry, as per their recent press release.
In the coming weeks, CEO Charlie Bachtell is scheduled to speak at several conferences where further details on the Spotify partnership are anticipated to be unveiled. In addition, Cresco Labs recently expanded their Sunnyside chain, inaugurating a new store in Palm Bay, Florida, a strategic location expected to cater to a large customer base in the region, according to a statement from Bachtell.
Currently, Sunnyside operates dispensaries in seven U.S states, with varied presence across these regions, and continues to grow, aiming to fulfill the cannabis needs of a larger clientele.