5 Takeaways from MJBizCon 2021

Last week, around 27,000 attendees from 50 different countries gathered at the Las Vegas Convention Center for the 10th annual MJBizCon. Surfside has been going to MjBizCon since 2018 and we were excited to be back in person. The cannabis industry moves faster than almost any other industry and MjBizCon has always been a great way to learn from business leaders across the cannabis space about the challenges and the opportunities they face today.

From our booth in the expo hall to our meetings with clients, we got the chance to talk to thousands of industry professionals and understand how small, medium and large businesses are looking at 2022 and beyond. Here’s what we learned this year at MJBizCon:

1. Cannabis businesses are more tech-savvy than ever.

When we first started going to MJBizCon in 2018, most attendees were still focused on getting cannabis businesses up and running, with a focus on growth, product, and compliance. Advertising technology took a backseat and when we shared what Surfside could do to help reach cannabis consumers, we kept things very high-level.

Fast forward to 2021. We’ve seen a significant uptick in the level of technological sophistication. We talked with attendees and clients about attribution, return on ad spend, customer data, and how the Surfside platform integrates with point-of-sale systems (POS), CRM solutions, and ecommerce platforms. There’s a real interest in how digital advertising works for cannabis and businesses are investing in full tech stacks that acquire and retain customers.

2. Advertisers want new ways to reach cannabis consumers.

A lot of business owners at MJBizCon faced the same challenge as always: reaching new cannabis consumers without advertising on Facebook and Google. While a lot of advertisers are using email and SMS to keep in touch with existing customers, building new audiences is the hard part.

At MJBizCon, we heard a lot of ways that businesses are doing growth marketing on their one. Whether it’s sponsoring newsletters, taking over websites, working with influencers or trying new marketing channels, the cannabis space is where real ad innovation is happening.

Dispensaries, brands, and ecommerce sites all need a way to get in front of new consumers and are shifting to channels where they can prospect and focus on new customer acquisition. As the market gets more competitive, it was exciting to hear about how companies are approaching digital advertising as a channel for building awareness and more lower funnel conversion goals.

3. Cannabis personalization is a data-driven, end-to-end experience.

At MJBizCon, there were countless variations on cannabis growth, production, and consumption on the expo floor. This underscored just how personal cannabis has become. Some consumers only want edibles. Others just want flower or a specific brand of pre-roll.

Consumers are getting more specific with what they want to buy, which means businesses need to advertise to each audience with the exact products they want. This is a challenge that can ultimately be solved by data. With the right consumer dataset, cannabis companies can reach new audiences based on specific product and brand preferences. These preferences are important to consider when it comes to big sales holidays, especially with Green Wednesday right around the corner.

4. New markets will require new approaches.

Every state has a different set of regulations about how to cultivate, sell, package and market cannabis. With maturing markets like California, dispensaries and brands have much different playbooks than smaller markets like Arizona or emerging markets like New York.

We noticed a big difference in how cannabis businesses are approaching each state, but we also heard a lot of people talk about how they’re planning to launch campaigns in new regions. This is the time for advertisers to familiarize themselves with the different regulations and compliance requirements for each state, but also think about the different types of consumers and their purchase habits to develop and market products more efficiently.

The importance of regional advertising is only going to grow as new states start to legalize cannabis in 2022 and beyond, and other new innovations like cannabis lounges start to open in mature markets. This is the time for advertisers to familiarize themselves with the different regulations and compliance requirements for each state, and think about the best way to reach new customers as they enter new markets.

5. Measurement Matters.

We all know the importance of advertising, especially as brands and dispensaries began to communicate directly with their customers through digital channels. This year, we noticed an increase in advertisers thinking about how to measure every ad to make sure that every campaign drives real results. It was the first time at MJBizCon that we started to regularly hear words like “return on ad spend” and “attribution,” which is an exciting turning point for the industry.

It’s clear that the future of advertising for cannabis is going to be founded on transparency. Advertisers don’t just want to know how many consumers their ads will reach - they want to understand what consumers do as a result of ad exposure.

The Cannabis Technology Horizon

The cannabis industry has had to find an uncommon path for growth. With a regulated and rapidly changing environment, every business has had to roll with each new wave of developments. MJBizCon has confirmed to us that the creativity of the cannabis industry has prevailed. Now, there are so many new innovations that it takes multiple football fields to even display a fraction of them.

As the space gets more competitive and fragmented, knowing what a customer wants – from the advertisement and in-store experience to the format, brand, and effect of the cannabis itself – is going to be critical. That’s why we believe that customer data is going to be at the center of the next tech revolution in the cannabis industry. Because, with the right data, you can predict the future. And that’s what this industry has always been about.

Want to know more about where the industry is headed? Download "The Season of Green: 5 Key Cannabis Sales Trends for Holiday 2021."