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How “media for equity” helped a startup CBD brand
Incubators, start-ups, entrepreneurship
Non-prescription, OTC products
Strategy
Kadenwood, a startup manufacturer of plant-based wellness products, successfully overcame initial barriers to advertising goods containing cannabidiol (CBD) using a “media for equity” approach.
The obstacle
- When Kadenwood launched in 2019, the media landscape was unwelcoming to products that incorporated CBD, an ingredient found in cannabis which relieves pain and anxiety, but is not addictive or psychoactive.
- As this emerging category had a regulatory structure that was still taking shape, many media owners were hesitant to run ads for CBD products.
- As Erick Dickens, Kadenwood’s CEO, explained at the Association of National Advertisers’ (ANA) 2022 Masters of Marketing conference, “When we first started this business, only 20% of available GRPs would advertise” goods featuring CBD.
The solution
- In tackling this problem, Kadenwood embraced a “media for equity” model with several media companies, Dickens continued.
- Those companies included Discovery, with the Discovery Channel becoming a critical element of Kadenwood’s media mix.
- Deals with Sinclair Broadcast Group and publisher a360media also “really made a difference”, said Dickens.
- Thanks in large part to these agreements, Kadenwood soon held a 50% share of voice in the category – a total set to hit 80% this year.
- Now, Dickens reported, some 80% of GRPs are available to CBD brands, but Fox and Disney are among the major media owners that still do not run such advertising.
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