High Expectations, Higher ROI: Fresh Programmatic Strategies For Legal Cannabis

It’s an understatement to say that the cannabis industry in the United States has undergone a remarkable transformation. Recreational marijuana is now legal in 24 states, medical use in 38 states, and 52.5 million people, or about 19% of Americans, reported trying a cannabis product at least once in 2021 according to the CDC. Beyond that, the 2018 Farm Bill opened the door for hemp-based products to be legally shipped nationwide and sold in many food and beverage retailers (rather than dispensaries) to buyers 21 and over.

This evolving consumer and legal landscape positions cannabis alongside other regulated industries like alcohol and gambling, operating within a framework of mainstream acceptance and oversight. But when it comes to digital advertising, cannabis brands don’t exactly have it easy, even compared to the regulated verticals space at large. Between state-by-state regulations, platform restrictions, and limited access to mainstream media channels, the path to reaching consumers online has been anything but straightforward.

But as the category matures – and demand for sophisticated marketing grows – it’s time to rethink the tools available. That’s where MediaMath comes in.

Now part of the Infillion ecosystem, MediaMath opens up a flexible, compliant, and highly customizable way for cannabis advertisers to scale programmatic media. For an industry that’s used to working with major limitations, this is a chance to work smarter.

Targeting with Precision (Without the Risk)

Cannabis brands know their audience better than most. They understand the nuances of wellness seekers vs. recreational users, the preferences of flower loyalists vs. gummy fans, and the local realities that shape consumption habits. What they’ve often lacked is a safe, scalable way to act on that insight. Many states that have legalized recreational cannabis require that ads for cannabis products be able to prove to regulatory authorities that they are not being shown to anyone out-of-state or that their targeting meets thresholds for audiences that are 21-and-over. Other states ban the use of certain platforms (no mobile ads for cannabis brands in Colorado, for example) or restrict distribution of out-of-home ads to avoid proximity to schools, houses of worship, or other sensitive businesses.

MediaMath enables granular targeting with built-in safeguards to ensure campaigns comply with state laws and industry regulations. That includes geo-fencing down to the ZIP code level, layering on age restrictions, and selecting premium inventory sources that are cannabis-friendly.

It’s not about casting a wide net—it’s about reaching the right consumer, in the right market, at the right time.

First-Party Data That Works Harder

As third-party cookies fade into the background, first-party data is stepping into the spotlight. Cannabis retailers and brands, especially those with loyalty programs and online ordering systems, sit on a goldmine of consumer intel. The key is putting that data to work.
With MediaMath, marketers can securely onboard first-party data and use it to power smarter segmentation, creative personalization, and retargeting. Whether it’s re-engaging lapsed customers or nudging loyalists toward new SKUs, this unlocks a more performance-driven approach that respects privacy—and drives results.

Seamless Creative That Converts

Compliance doesn’t mean creative has to suffer. Through Infillion’s Creative Studio and ShopX technology, cannabis brands can pair MediaMath’s programmatic reach with interactive formats that drive direct-to-retail action. Whether it’s showcasing hemp-based topicals in a shoppable carousel or highlighting new drops with dynamic video, creative can finally work harder—and smarter—within the constraints of the category.

Infillion’s ad products also allow for quick, flexible changes to ad creative. That’s key in the cannabis vertical, where state-by-state advertising regulations may require health risk disclosures that use specific language, may ban promotions or the sharing of pricing, or may ban certain imagery like cannabis leaves or cartoon mascots. This can make it potentially onerous for a growing brand to build entirely new ads for different markets unless they have access to quick, on-the-fly creative services like Infillion’s Creative Studio.

Hemp-derived products, meanwhile, are in many states not subject to advertising regulations beyond age-gating similar to that of alcohol brands – something Infillion can also build into its ads.

Looking Ahead

Cannabis marketing isn’t niche anymore. It’s evolving into a category that demands the same level of strategy, sophistication, and scale as CPG, QSR, and retail brands. MediaMath helps unlock that next chapter—with guardrails, flexibility, and a platform built for what’s next.

For brands in the space, there’s real promise. “Advanced audience targeting, creative optimization, and ROI-based measurement are unique value propositions digital advertising can offer brand marketers, especially in highly regulated markets like cannabis,” says Andrew Horlick, chief revenue officer of Second Act, a cannabis company that produces infused food and drinks designed for safe and responsible social consumption. “These tools and techniques generate effective results for alcohol advertisers. They can be the blueprint for cannabis advertising. With a 21+ age gate, proper state-level geo-targeting, and real-time sales data, digital ads can garner awareness and drive in-store sales.”

If you’re a cannabis brand who’s ready to scale smarter, let’s talk.