In the tug-of-war between compliance and scaling, cannabis companies know this struggle better than anyone. As these innovators continue to pioneer what will hopefully be a mainstream business, they must first push through regulatory obstacles.
Companies like Fyllo, a compliance-focused marketing technology company with a focus on cannabis, are using technology to tackle compliance issues so that cannabis companies can market themselves to the right demographics.
Founder & CEO of Fyllo, Chad Bronstein, spoke on this ongoing battle at the Benzinga Cannabis Capital Conference in Miami.
The problem for brands right now is when it comes to advertising they have to choose between compliance or scale, Bronstein said during a presentation. Do you invest heavily in marketing and risk running afoul of current regulations, or do you rely on word of mouth and other methods to get the word out?
“Unfortunately, compliance remains one of the biggest barriers to growth for an industry that wants to grow fast.”
Reaching The Mainstream Market
“We wanted to make sure that brands didn’t have to choose, they should be compliant and have the ability to scale,” said Bronstein.
Fyllo is solving the cannabis industry’s inability to market themselves on these major platforms by creating technology that accounts for compliance issues, helping cannabis marketers create regulation-ready marketing campaigns that work in more places and across more channels.
“We’re developing an ecosystem that allows the brands, even the mainstream brands, to reach the right audiences because [we believe] there is cross-pollination there."
“Cannabis brands are starting to appeal to non-endemic market segments. Like wine lovers who are curious about the relaxing effects of cannabis. Or a mountain biker who wants to recover after a day on the trails.” Bronstein told Benzinga. “In order to reach these audiences, we’re helping cannabis brands explore innovative audience segmentation and reach lucrative markets: fashionistas, wellness warriors, pet lovers and more.”
Using Technology To Disrupt
Thanks to companies like Fyllo, the need to compromise between scale and compliance goes away. Using AI technology that you can run your creative content through to make sure it’s compliant based on state and local government regulations, allows marketers to plan and execute more ambitious campaigns.
Their technology, powered by RegsTechnology, also works to identify the right audience and analyzes the proper strategies and tactics to target that audience.
"We believe that technology can do for the cannabis industry what it has done for almost every other industry in the world: disrupt and accelerate it. Technology can unlock trapped value and accelerate growth for cannabis by removing friction from compliance and other issues that slow growth for cannabis companies today.”
Photo by Roberto Valdivia on Unsplash