On Wednesday, Twitter made history by allowing cannabis businesses in the United States to advertise their brands and products on the platform. The industry as a whole will benefit greatly from this development.
For a long time, only hemp-derived CBD topical products were allowed to be advertised on the platform. Although it previously allowed cannabis advertisements, the site has since adopted the “no cannabis advertising policy” of other social media sites like Facebook, Instagram, and TikTok. Given that marijuana retains its illegal status at the federal level, this is understandable.
In response, 21 U.S. states have legalised the purchase and use of cannabis for recreational purposes.
As long as they follow Twitter’s guidelines, cannabis businesses can promote themselves on the social media site. Among these are not targeting users under the age of 21, having the necessary licences, going through Twitter’s approval process, running ads only in jurisdictions where doing so is legal, and, most importantly, not running ads
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Cresco Labs, a multi-state cannabis and medical marijuana business, called the announcement “pretty massive” for the legal cannabis marketing sector.
The vast majority of cannabis companies acted swiftly to implement Twitter’s suggestions. On Wednesday, Trulieve Cannabis Corp. began promoting their products across the state via the service.
It’s been made clear by Twitter that licenced cannabis businesses can advertise there. Ads for CBD, THC, and cannabis-related products and services can now be displayed on Twitter, as stated in a recent blog post.
Several advertisers abandoned the platform after Elon Musk’s formal acquisition of Twitter was finalised in late October 2022; this update shows that the company is looking into new ways to increase its revenue. It’s no secret that Apple and Amazon were two of Twitter’s biggest customers, and their purchases helped boost the company’s ad revenue. Both companies abruptly stopped advertising on the platform last year. Musk contacted high-level company officials to discuss the issue.
But it seems like Twitter’s finances are going in the wrong direction. One month ago, The Platformer reported that Twitter’s revenue in the fourth quarter of 2022 was down 40% year over year. There is currently no public availability of this information because Twitter is a privately held company. However, the most recent quarter reportedly brought in about $942 million in profit for the company.
The entry in the journal reads as follows: “It’s easy to learn a lot from the cannabis community on Twitter, as people are always talking about their experiences with the drug and offering advice based on what works best for them (for medical purposes, personal well-being, or recreational purposes). Cannabis’s effects on society, the industry’s growth, and the substance’s legality are all hotly debated topics.”
Twitter has been clear that cannabis businesses with appropriate advertising licences are welcome to promote their wares there. From what I can gather from the blog post, “Twitter is now allowing advertisers to promote brand preference and informational cannabis-related content for CBD, THC, and cannabis-related products and services.” Items and services related to cannabis are included in the term “cannabis-related products and services.”
The most recent update gives the impression that Twitter is considering a number of different ways to increase its revenue after losing a number of advertisers after Elon Musk’s formal takeover of Twitter in late October 2022. It’s no secret that Apple and Amazon were once two of Twitter’s most lucrative clients. Both companies abruptly decided to stop advertising on the platform the year prior. Musk contacted company executives and tried to work with them to find a solution to the problem.