Audience Ascension: Why Brands Are Embracing Cannabis & CBD Consumers

A Q&A with Fyllo’s Chief Partnership Officer, Steve Katelman

Steve Katelman, Chief Partnership Officer, Fyllo

Tremor International, a global leader in video and Connected TV (CTV) advertising, recently announced plans to expand its partnership with Fyllo, a leader in compliance-first SaaS solutions for highly regulated industries. Combining Tremor’s TV viewership data with Fyllo’s cannabis and CBD purchase data will create exclusive access to rich audience data sets, built to drive growth and optimize campaign performance for mainstream brands.

To further explore the goals of this partnership, Tremor Video’s Vice President of Marketing & Communications, Justin Chadwick, sat down with Fyllo’s Chief Partnership Officer (and former Omnicom Media Group executive), Steve Katelman, to explore who cannabis and CBD consumers really are, what this emergence means for traditional brands, and what the future of second and third-party data looks like.

The rising popularity of cannabis and CBD and what makes these consumers unique

Justin: Cannabis and CBD consumption has arguably become far more mainstream across the US over the past few years, with a handful of additional states poised to pass legislation to legalize medical or recreational usage during this November’s midterm elections. What are some of the key ways that this wider acceptance among the US population has translated to advertisers’ audience reach strategies?

Steve: As the regulatory landscape evolves and marketers begin to realize cannabis and CBD consumers tend to be early adopters, we expect to see a significant number of brands tap into this new cannabis and CBD audience to deliver marketing growth aligned with their performance objectives. This is a core reason that thousands of other non-endemic, mainstream marketers are transacting against Fyllo data at scale.

These brands invest heavily in Fyllo data because cannabis/CBD consumers are relentless first movers, inclined to change brands for the sake of variety. They’re passionate about brands that help them do more, live better, and discover new experiences.

By fusing high-reach TV viewership data from TV Intelligence and cannabis/CBD purchaser data from Fyllo, advertisers can now activate unique and exclusive audience segments designed to reach premium, high-spending and engaged consumers.

J: While some people may still possess antiquated or stereotypical perceptions of the average cannabis/CBD consumer, how has the actual consumer profile evolved, and what makes these consumers unique relative to others?

S: The cannabis consumer you might remember from the movies was often depicted as someone living in their parents’ basement. However, this myopic stoner stereotype couldn’t be further from the truth. Today’s consumer lives an active, healthy lifestyle—in fact, they’re more likely to be risk-takers and engage with different types of brands than the average customer.

According to a recent Forbes article, one in five Americans consider themselves “heavy users,” meaning they consume cannabis at least three times per week, and over 50% of these users are parents with children under 18.

Believe it or not, cannabis/CBD consumption is mainstream, and these consumers are first-movers who create momentum for all types of brands. According to MRI-Simmons, there are now more than 64 million US Adults (21+) who consume cannabis or CBD in some form. That’s 1-in-3, growing nearly 70% in the last four year (making them one of the largest and fastest-growing consumer groups spanning every generation, life stage, influencer group and lifestyle).

While a diverse audience, cannabis/CBD consumers share a progressive mindset and propensity to buy that make them an ideal audience for mainstream marketers. These are the consumers who have been proven to accelerate growth from a marketing perspective—it’s the reason brands across a variety of categories are targeting them at scale.

How partnering with Tremor gives ambitious advertisers the edge

J: With Fyllo and Tremor combining our respective audience data assets to form the exclusive TV+ segments, what incremental or competitive advantages can advertisers expect by activating these audiences?

S: By fusing high-reach TV viewership data from TV Intelligence and cannabis/CBD purchaser data from Fyllo, advertisers can now activate unique and exclusive audience segments designed to reach premium, high-spending and engaged consumers.

These segments reflect Tremor’s larger effort to expand its TV Intelligence solution with other premium data sets to provide advertisers with more precise reach across unique, high-value audiences. Additionally, Advertisers can leverage these data sets to build custom audience segments based on a brand’s specific campaign objectives and performance goals.

J: Are there certain types of brands that the Fyllo/Tremor TV+ segments are most relevant for, and if so, why?

S: These audiences open up a wide variety of use cases for mainstream marketers across verticals like CPG, QSR, Retail, AlcBev, Entertainment, Gaming, Fitness, Pharma and Beauty.

To better quantify these numbers by industry, here are a few telling stats:

  • CPG: Of the 66 million Americans who consumed cannabis last year, 44% (29 million) are the primary shopper in the household, spending $150 or more weekly
  • QSR: 39% of cannabis users consider themselves heavy fast food/drive-in consumers (dining out over 9 times a month)
  • Retail: Nearly one-fourth of cannabis consumers claim to be impulse purchasers, making up an audience of nearly 15 million people
  • Fitness: More than half of cannabis/CBD consumers follow a regular fitness routine and 36% (23 million) are more likely to run a marathon

Together, we’re bringing a growing, valuable data category to the fastest growing TV and video content formats. Marketers across these categories can now unlock new insights and targeting opportunities for these consumers, ultimately driving increased performance.

The future of marketing is offline, cannabis and CBD transaction data

J: With a cookie-less future in the foreground, how can Fyllo’s data help both endemic and mainstream brands to “see around the corner” to help them prepare?

S: The ad tech ecosystem is at an inflection point. As third-party cookies go away, brands are more focused now than ever on first-party data and compliantly sourced second and third-party data sets.

Fyllo data is sourced from 100% offline, transaction data (no online, intent-driven data signals fuel any of the source data feeding into Fyllo’s data ecosystem). We’ve also built our infrastructure in partnership with/on top of LiveRamp’s RampID-enabled identity resolution framework, which enables long-term addressability.

Learn more about Fyllo’s partnership with Tremor International and how it can drive audience growth at scale here or contact us to learn more.