Crypto and cannabis companies both seem to be growing and many are treating the growth as a gold rush. However, one of the main issues is that the more companies saturate the market, the greater the competition is and with more competition, companies start turning to competitive acquisition techniques.
Online advertising has become an issue for both industries, which may stunt their growth. For instance, Facebook recently banned crypto-related advertising this year, claiming that “This policy is intentionally broad while we work to better detect deceptive and misleading advertising practices,” claimed Rob Leathers, a tech director at Facebook. As for Google and Twitter, the moved more slowly in terms of banning crypto advertising. Their announcements came months after Facebook’s and especially after it followed through with its promise to revamp policies to include crypto and to allow users to purchase only specific types of crypto ads.
Like the crypto industry, the cannabis market has also faced similar struggles. Section 5 of Facebook’s policies indicates that cannabis advertising is prohibited content and as such, the platform will shut down cannabis-related pages too. Given that Facebook owns Instagram, it is likely that the platform will implement such a policy as well. One example is that Vice reported in 2016 that Instagram closed its two cannabis pages operated b Canadian companies.
At the end of the day though, both cannabis and crypto are industries that may stay. Accordingly, advertising companies are looking into other customer acquisition techniques that are not as scalable as programmatic buys but are sometimes just as effective.
One popular technique is to influence the market and while it is still a new approach, it is one that holds promise for both industries and their interest in experiencing the growth they need in today’s markets.