Will The (Potential) TikTok Ban Impact the Cannabis Industry?
While everyone else is freaking out about a potential ban, most cannabis marketers haven't even been able to start exploring the platform for their brands.
By now you have probably heard about Congress trying to ban TikTok, which has a lot of entrepreneurs and marketers who have become dependent on the viral platform wondering what they’ll do if the legislation becomes law.
Luckily for those of us in the cannabis industry, if there is one thing we understand as cannabis marketers it is how to survive in a constantly evolving landscape.
Our journey has always been one of creativity and resilience, navigating through a digital minefield where full access and complete domain over social platforms remain out of reach for cannabis brands.
Except for last year’s official opening up of Twitter, most platforms, including TikTok, have maintained their unfriendly stances toward cannabis companies, often shadowbanning, blocking searches for cannabis-related content, and all too often shutting down accounts in violation of an opaque set of standards, with no explanation.
While many of us have steered clear of TikTok for our cannabis brands due to its restrictive policies, the broader implications of this potential ban highlight the ongoing volatility and fragility of the digital marketing platforms many of us depend on, as well as the need for cannabis brands to build their communities outside of social media — a topic we covered in last week’s newsletter after major outages across all the major social platforms.
What exactly is going on with TikTok?
The debate surrounding TikTok's future in the United States has escalated into a complex political saga, balancing the tensions between digital and first amendment freedoms with national security.
The "Protecting Americans from Foreign Adversary Controlled Applications Act," passed by the House of Representatives on Wednesday, marking a significant moment in this ongoing debate over TikTok’s influence on Americans. The bill, aimed at mitigating potential national security risks, mandates ByteDance, TikTok's parent company (which some lawmakers accuse of being ran by the Chinese Communist Party due to some overlap with ByteDance’s board of directors) to divest its stake, essentially forcing a sale to keep the app operational in the U.S. market — a move that TikTok said it would not be able to comply with.
As the bill transitions from the House to the Senate, its journey becomes more uncertain. Notably, Senate Majority Leader Chuck Schumer has expressed caution, emphasizing the need for comprehensive dialogue with committee chairs, highlighting the Senate's methodical approach to such consequential legislation. The Senate Commerce Committee, under Maria Cantwell's (D-WA) leadership, is considering alternative legislation, the GUARD Act, which seeks to regulate rather than ban foreign apps, suggesting a preference for a more nuanced approach to addressing these digital dilemmas.
President Biden says that if a bill reaches his desk that he will sign it, but after swift passage in the House, it’s fate in the Senate remains questionable.
What would a TikTok ban mean for small businesses?
TikTok's influence on the digital landscape extends far beyond viral dances and entertainment; it has become a cornerstone for small businesses and entrepreneurs across the United States.
The platform's unique interest-based algorithm and broad reach have empowered individuals and startups to achieve unprecedented growth and visibility. With the latest legislative actions in the House, there's a growing apprehension among the entrepreneurial community about the future of this vital marketing channel.
Critics of the proposed ban argue that such actions could severely undermine the economic advancements made possible by TikTok. The platform's role in driving millions of dollars in revenue for small businesses highlights its significance not just as a social media outlet but as an essential tool for economic engagement and opportunity.
One estimate said that TikTok drove $14.7 billion in revenue to small businesses in 2023 and supports a minimum of 224,000 jobs in the U.S. — for some comparison, last year Vangst put out a study that showed the cannabis industry supports more than 418,000 full-time employees.
Banning TikTok would mean that many small businesses for whom the social network is a lifeline, would need to find other ways — and other platforms — to reach their customers.
What about cannabis businesses?
Despite the gradual march towards legalization and broader societal acceptance, cannabis brands consistently find themselves navigating a labyrinth of advertising restrictions and platform policies that are far less forgiving than those faced by mainstream businesses. This systemic exclusion has not only stifled brand visibility but has also limited the industry's ability to engage with and educate a wider audience about the benefits and innovations within cannabis.
As digital platforms emerge as the new public squares, the importance of equitable access cannot be overstated. TikTok, with its unprecedented organic reach, represents a beacon of hope—a platform where nuanced, educational content could potentially thrive free from the constraints imposed elsewhere.
Can you imagine what it would be like for the industry’s best operators to have TikTok as an open education platform?
The irony, however, is palpable. Just as cannabis brands are barely beginning to cautiously explore TikTok, the specter of a ban looms large, threatening to further marginalize an industry that is already fighting an uphill battle for digital inclusivity.
This ongoing exclusion from digital platforms underscores a broader issue: the need for the cannabis industry to innovate beyond traditional social media constraints. It highlights the importance of building robust, platform-independent communities and utilizing alternative digital marketing strategies like the ones we laid out in our podcast interview with Cassie Tomaselli.
Whether through content-rich websites, email marketing, or emerging platforms that are more cannabis-friendly, the industry must continue to pioneer new paths for connection and growth.
Moreover, it serves as a call to action for policymakers and platform architects alike to reconsider the outdated perceptions and policies that hinder our ability to compete on a level playing field. As the cannabis industry continues to evolve, its capacity for economic contribution and job creation cannot be underestimated—nor can the value of its message in the broader conversation about health, wellness, and social/economic justice.
If history has shown us anything, it's that the cannabis industry's resilience and ingenuity know no bounds. Faced with adversity, the industry has consistently found ways to thrive, and this challenge will likely be no different. The journey towards digital equity continues, with the cannabis industry at the forefront, paving the way for a future where its voice is heard loud and clear across all platforms.
If TikTok gets banned, then what?
With the vote in the House of Representatives passing on an overwhemingly bi-partisan vote (something pretty rare these days), it seemed like the banning of TikTok was pretty much set in stone last week, but now that it has reached the Senate there is a possibility that things might slow down a bit.
While I’ve been seeing a lot of doom and gloom across the internet when it comes to this conversation, I really appreciated this clip that Gary Vaynerchuk put out last week where he talks about being excited by the prospect of a potential ban because it will drive all of that attention to other platforms and digital channels.
“If TikTok gets banned in America, it’s actually a good thing for us because everyone is gonna be confused where all the attention goes. If all 9 social networks disappeared tomorrow I would be thrilled because the attention has to go somewhere.” - Gary Vaynerchuck
Gary's perspective sheds light on an important mindset for navigating the digital world's constant movement—seeing opportunity in change rather than loss.
This mentality — embracing the movement of attention as platforms rise and fall — should resonate deeply with our industry. Marketers in this space have long faced an uphill battle: navigating shifting legal landscapes, overcoming advertising restrictions, and finding innovative ways to reach their audience against the odds. The potential TikTok ban, rather than a setback, can be viewed through a similar lens of resilience and adaptability that has characterized the cannabis industry's approach to digital marketing.
The cannabis industry's inherent flexibility and creativity in marketing strategies stand as a testament to its resilience.
Just as Gary Vee anticipates excitement at the redistribution of digital attention, cannabis marketers too can leverage this shift as a strategic advantage. The potential dispersal of TikTok's user base across other platforms represents not just a challenge but a vast array of opportunities—to explore new platforms, to double down on content strategies that resonate with our audiences elsewhere, and to innovate in spaces less saturated by mainstream businesses.
This potential period of digital realignment fits well with the cannabis industry's natural inclination towards adaptability and growth in the face of adversity, reinforcing the idea that with change comes new pathways to connect and engage.
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Headlines:
'Super Bowl of cannabis:' Trade show brings thousands to county fairgrounds - Ventura County Star
The Hall of Flowers cannabis industry trade show recently debuted at the Ventura County Fairgrounds, offering a pivotal gathering point for cannabis professionals. This industry-exclusive event, designed to connect dispensaries with wholesale sellers and cannabis brands, drew an estimated 4,000 attendees, underscoring its significance within the sector. Described as the "Super Bowl of cannabis," the trade show presented a wide array of offerings, from innovative ceramic-tipped smokeware to high-tech joint rolling machines capable of producing up to 1,200 pre-rolls an hour. With Ventura city and fairground officials backing the event, it not only energized local businesses but also illustrated the broader acceptance and enthusiasm for cannabis within the community. Despite restrictions on free distribution, the show navigated regulations by offering samples through a structured online system, ensuring compliance while maintaining the event's vibrant and business-forward atmosphere. The Hall of Flowers stands as a testament to the growing integration of cannabis into mainstream culture and commerce, highlighting the industry's innovative spirit and economic potential.
My thoughts:
First off, Hall of Flowers is one of my favorite events in the cannabis industry. I attended the first three HoF events when I was still living in the Bay Area and working for National Cannabis Industry Association.
Shout out to all of my friends who were in attendance last week, including the fellas over at Respect my Region who celebrated their 13th anniversary by throwing what looked like a dope party.
If you’re a licensed brand or retailer in California, you probably know about the event and have likely attended yourself but for those who haven’t, it’s a breath of fresh air compared to all of the other cannabis industry events in the market.
I think of it as a mix of MJBizCon meets the old High Times Cannabis Cups pre-Wall Street-takeover, but the emphasis for the brands is on securing purchase orders from the retailers who are walking the event, not necessarily just winning accolades from their colleagues.
Attendees must be actively working in the cannabis industry with the first day being dedicated to licensed dispensary buyers. Attendees are able to secure samples from various vendors by purchasing them from an on-site dispensary for $3 each.
I have to imagine that anyone who has ever attended has a photo in their archive of their loot like the one I took below back in 2019. I’ve seen some pretty wild pictures — people really throw down.
For those of you who don’t know, HoF is a project co-created by Green Street, who are also known for launching some celebrated celebrity brands like 2 Chainz’s Gas and Trees by The Game as well as lifestyle brands like Vacation and Country.
Both Green Street and Hall of Flowers are connected to Gary Vaynerchuk who is a partner/investor in both. Below is a keynote he gave at the first Hall of Flowers in 2018 which is pretty fascinating to look back on now.
Kamala Harris Says ‘We Need To Legalize Marijuana’ For First Time Since Joining Biden Ticket, Signaling Potential Shift Ahead Of Election - Marijuana Moment
In a significant move within the Biden administration, Vice President Kamala Harris has openly advocated for the legalization of marijuana, marking a potential shift in the administration's stance as the November elections approach. During a private meeting with cannabis pardon recipients at the White House, Harris, who previously sponsored a marijuana legalization bill as a U.S. senator, expressed the need for legalization and called for the Drug Enforcement Administration (DEA) to reclassify cannabis promptly. This stance contrasts with the administration's prior focus on decriminalization and pardoning certain cannabis offenses. The meeting, which also involved discussions on criminal justice and clemency, underscores a broader engagement with cannabis policy reform. Although Harris's comments were made out of the public's earshot, they represent a notable development in federal cannabis policy discussions.
My thoughts:
While I wouldn’t read too much into the Vice President speaking out in favor of legalization, it was a significant moment for Vice President Harris to convene an event in the Roosevelt Room of the White House specifically focused on cannabis related pardons that were handed down by President Biden.
My friend Chris Goldstein, a long time cannabis advocate and someone I’ve looked up to since I was listening to him on the NORML Audio Stash when I was in college, was in attendance as he was a pardon recipient. I found it interesting that the conversation was moderated by Fat Joe, but it certainly got some media attention.
With the 2024 election heating up, many are wondering if the DEA will make an announcement around re-scheduling in time for Biden campaign to use the headlines as a way to court younger voters who are largely turned off by a Biden/Trump rematch. I think it will happen this year, but it could potentially come after the election.
It seems like everyone is waiting on pins and needles to hear the final decision, but a recent article from the Wall Street Journal reported that there are some disagreements inside DEA as to how to handle THC potency which could be contributing to a delay. While others like Shane Pennington from OnDrugs says that the average rescheduling decision has historically taken 9+ years so that by comparison, the cannabis review is going quickly.
However, the waiting game is why many of us in the advocacy circles are actively planning the largest gathering of cannabis advocates our movement has seen in D.C. in years. We will be telling President Biden to keep his promise to decriminalize cannabis, release cannabis prisoners and expunge their records. We’ll be gathering the week of 4/20 with several days of events planned.
You can also sign United for Marijuana Decriminalization’s petition to tell Biden to de-schedule cannabis here.
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Cannabis Industry Blogs + More Headlines:
3 In 10 Marijuana Shoppers Stick To Favorite Strains & Why Some Never Change Their Weed Retail Choices - Business Insider
Surfside and BLAZE Partner to Enhance Retail Media Advertising in Cannabis - PR Newswire
Pot brands are failing, but Edie Parker may have the secret to success - Green State
Illinois' recreational weed market is most expensive in the Midwest - Axios Chicago
California brand brings West Coast vibes to Michigan’s weed scene - The Gander
Popular U.S. Edibles Brand Announces European Launch - High Times
The rise of cannabis drink culture - The Drinks Business
Common Pitfalls in Cannabis Brand License Agreements - Cannabis Business Executive
Mainstream Marketing Chatter:
Why Walmart’s quick success in generative AI search should have Google worried - CNBC
AI could reshape ad budgets and marketing strategies - Yahoo Finance
TikTok Adds Search Insights to Better Inform Content Strategies - Social Media Today
Sam Altman: AI Will Replace 95% of Creative Marketing Work - CMS Wire
PODCAST: Analyzing the CEO–CMO relationship and its effect on growth - McKinsey
'Should I Be a Fractional CMO?' - Marketing Profs
Report Finds No Correlation Between Social Media Engagement and Content Readership - Social Media Today
Instagram overtakes TikTok as world’s most downloaded app - The Guardian
5 of the top CMO priorities today, from AI & cookieless personalization to funnel collapse - The Drum
Trump's TikTok ban reversal comes after meeting megadonor who has stake in TikTok - ABC News
Brands are rethinking their out-of-home advertising strategies to focus less on awareness and more on conversion - Modern Retail
Which CMO are you: a trail blazer or a flame thrower? - The Drum
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