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The Hidden Risks of Cannabis Marketing: What Every Business Needs to Know

Marketing cannabis in 2025 is unlike any other industry. These days, cannabis businesses are forced to navigate a constantly changing digital landscape. This challenge arises from several factors: federal uncertainty, rapidly shifting state laws, and evolving platform restrictions. Each of these elements adds a layer of complexity to how cannabis companies operate and market their products; one wrong move can mean account shutdowns, loss of advertising access, or even legal trouble.

What we’re sharing here isn’t speculation, it’s what we’re seeing in real time. Cannabis marketing is unpredictable, but by staying informed, brands can avoid costly mistakes. We’ll also be keeping our blog updated as policies shift, so be sure to check back to stay ahead of the curve.

 

1. The Tech Gap: Integration, Hosting, & Compatibility Issues

 

The cannabis tech ecosystem is still evolving, and not all platforms work together smoothly. Some integrate well, some don’t. Some focus on SEO and loyalty, while others prioritize different data points. If your tech stack isn’t aligned, it can impact marketing performance:

  • Integration Challenges – Some dispensary platforms work seamlessly with CRMs, loyalty programs, and marketing tools, while others don’t. If data doesn’t sync properly, tracking issues and customer segmentation problems can occur, leading to wasted ad spend and lost revenue.
  • Hosting Restrictions – Some mainstream hosting providers restrict cannabis businesses, making it difficult to choose a scalable and compliant solution. For example, at the moment, dispensaries cannot process transactions through Shopify, but certain hemp brands can if they use a separate, compliant payment provider.
  • Limited Marketing Tool Compatibility – Many traditional marketing tools have cannabis restrictions, limiting data tracking, customer outreach, and workflow automation. While cannabis-friendly tools exist, they come with their own internal and external limitations.

 

Example: If you have multiple third parties working with a tool that has limited data capabilities, a single failure can create confusion, waste time, and delay your marketing campaigns.

Solution: Over the years, here at PufCreativ, we’ve worked with countless cannabis brands and tech platforms, helping businesses determine the best hosting solutions for their specific needs. We’ve developed strategies to ensure integrations are set up properly, workflows run smoothly, and data tracking is as accurate as possible given the platform’s capabilities. 

Whether it’s choosing the right CMS, optimizing site performance, or maintaining seamless integrations between e-commerce, POS, and marketing tools, we have the expertise to ensure everything functions efficiently.

 

  2. Compliance Chaos: State-by-State Marketing Limitations

Unlike most industries, cannabis brands must follow a patchwork of state-specific regulations that directly impact how they advertise:

  • Advertising Rules Vary Widely – Some states allow billboards, while others ban them. Some permit discount promotions, others don’t. What’s compliant in one market may be illegal in another.
  • Legal Language Limitations – Brands can’t make health claims, use certain words like “safe” or “organic,” or advertise in places where minors could see the content.
  • Federal vs. State Conflict – Even if a state allows cannabis ads, platforms like Google and Meta follow federal laws, meaning compliance is a constant challenge.

 

Example: You’re running a campaign that meets state and local laws, but Meta flags it for violating their policies. Now you have to spend time and money adjusting it or appealing the restriction.

Solution: At Puf, we understand the rules and have successfully run campaigns for clients on platforms like Meta and Google by working within their guidelines. Our clients’ ads perform well because we know how to navigate restrictions.

 

3. The Payments Problem: Constant Uncertainty

Even if a business follows all the rules, payment processing remains a major challenge:

  • Account Freezes & Credit Card Bans – Traditional banks and payment processors regularly shut down cannabis accounts without notice, even for ancillary businesses.
  • Workarounds That Backfire – Some brands try to disguise transactions or use offshore processors, but this can trigger fraud investigations or permanent account bans.
  • Lack of Subscription & Loyalty Integration – Because of payment instability, automated billing, loyalty programs, and subscription services are harder to implement.

 

Example: You’re a cannabis accessory brand using Shopify Payments, and suddenly your account is frozen for selling “restricted content.” You lose thousands in revenue while scrambling for a new processor.

Solution: We work with multiple compliant payment processors across cannabis, hemp, psychedelics, and beverages to ensure businesses have secure, scalable solutions.

 

4. Social Media: The Shadow Ban Struggle

Social media platforms enforce cannabis rules inconsistently, making marketing unpredictable:

  • Shadowbans & Account Deletions – Pages experience sudden drops in engagement or disappear from search results without explanation.
  • Inconsistent Enforcement – Two brands can post the same content, and one gets flagged while the other doesn’t.
  • Lack of Paid Promotion Options – Since cannabis brands can’t run traditional social ads, they have to rely on organic content, influencers, and engagement strategies that take longer to scale.

 

Example: You’re a dispensary that relies on Instagram for engagement, and overnight, your reach drops by 90% due to a ‘shadow ban,’ forcing you to shift to email marketing.

Solution: At PufCreativ, we help you mitigate risks with a diversified content strategy. We also provide ongoing monitoring and support to ensure platform compliance and quickly regain visibility if needed.

 

5. Google’s Inconsistent Rules: Google Business Profiles & Ads

Google’s enforcement of cannabis-related policies is unpredictable:

  • Google Business Profile Risks – Even licensed dispensaries have had profiles suspended due to vague “prohibited content” policies.
  • No Access to Google Ads – Cannabis brands technically cannot run paid ads, though we’ve found ways to work around this with safe landing pages.
  • Algorithm Volatility – Even if you rank well, Google algorithm updates can cause sudden traffic drops.

 

Example: You’re a Nevada-based dispensary, and your Google Business Profile disappears twice in six months, leading to lost foot traffic and online orders.

Solution: We’ve successfully appealed and reinstated suspended profiles, helping businesses regain visibility quickly.

 

6. Risk of Underperformance: Analyzing & Planning

Failing to analyze risks and plan strategically can lead to significant underperformance:

  • Competitive Edge Risks – Without investing in strategies to gain a competitive edge, particularly in new or highly competitive markets, cannabis brands risk losing customers and revenue.
  • Lack of Market Analysis – Neglecting to analyze market trends and consumer behavior can result in ineffective strategies and missed opportunities.
  • Revenue Impact – Poor planning and risk analysis can lead to a direct loss of revenue and customer base.

 

Example: Suppose you are an emerging cannabis brand entering a highly competitive market without a robust plan. This could result in early setbacks and a struggle to gain a foothold, while competitors attract your potential customers.

Solution: By conducting thorough market analysis and investing in strategic planning, we’ve helped businesses identify opportunities for growth and build sustainable competitive advantages, mitigating the risk of underperformance.

 

Managing Expectations & Navigating the Risks with PufCreativ

Finally, as you can see, the cannabis industry comes with unique marketing challenges, and setbacks are inevitable at some point. That’s just the reality of the space. However, partnering with an agency that’s been through it all can help mitigate risks, expedite problem-solving, and ultimately save time and money.

  • Own your audience – Invest in native e-commerce, SEO, email marketing, and branded content rather than relying on third-party platforms.
  • Stay compliant – Understand state-specific regulations and adapt marketing strategies accordingly.
  • Diversify marketing channels – Use data to refine strategies across SEO, social, email, and paid advertising.

 

The cannabis industry isn’t slowing down, and neither are we. As the market continues to expand and regulations evolve, it’s crucial to stay informed and adaptable. Stay ahead of the curve by following our updates, where we provide the latest information on changing policies and platform restrictions.

Ready to take your cannabis marketing to the next level? Contact us and let’s build a strategy that works for your brand. Let’s get started, today!