California: Medical Marijuana Ads Light Up Bay Area Broadcast

Jacob Redmond

Well-Known Member
An Oakland medical marijuana dispensary has started running television ads in one of the first campaigns of its kind in the Bay Area, even as the industry remains illegal at the federal level.

Magnolia Wellness, located at 161 Adeline St. in West Oakland, has begun running ads on local public channels KRON and KOFY. The ads features multiple patients who talk about the health benefits of cannabis, but don't include any images of the product itself. Watch the ad here.

"There's a lot of ailments, and a lot of people that cannabis can help. It's not just for parties anymore," said Bob Beyn, president of Sacramento-based Seraphein Beyn Advertising Inc., which developed the ads for Magnolia Wellness, which occupies 2,500 square feet and has 20 employees. It receives about 350 to 400 patients a day and has also advertised with a billboard on Interstate 580.

The medical marijuana industry is only legal in about half of the 50 U.S. states, which has been an obstacle to companies' marketing efforts. The Federal Communications Commission, which regulates television broadcasts, hasn't clarified the legality of advertising medical marijuana on television. For that reason, Beyn said that corporate affiliates including NBC, ABC and Fox have declined to advertise medical marijuana.

But the local public channels KRON and KOFY were open to the idea. The budget for the ads is in the tens of thousands of dollars a month. In January, the Green Cross, a dispensary located in San Francisco's Excelsior district, ran a television ad on KOFY that was the first time the industry was advertised.

Last month, a Portland television station, KATU-TV, was poised to become the first network channel in the country to broadcast an ad for a marijuana business, but it pulled out at the last minute.

Although the industry has become legalized in more states, businesses still face obstacles when it comes to promotion.

Patten Wood, marketing manager for Harborside Health Center at 1840 Embarcadero in Oakland, one of the largest dispensaries in the state, has also run into obstacles. Earlier this year, Harborside lost its social media accounts on Facebook and Instagram and lost 45,000 combined followers and likes.

"We were never told why we lost our accounts, but we expect it's because prices were listed, but we do not know for sure. We are in the process of rebuilding those accounts now," said Wood. At the same time, "Facebook has been actively pursuing us to run ads on their site."

Medical marijuana companies have also had legal challenges. Melinda Haag, the former U.S. Attorney for the Northern District of California who left office this week, was an opponent of large medical marijuana dispensaries and sued multiple businesses including Harborside in the effort to shut them down.

But Oakland elected officials and the city attorney opposed the efforts, noting that Harborside generates over $1 million in annual taxes and has over 100 employees. Those city officials said resources would be better spent fighting violent crime.

Medical marijuana companies are hopeful that the industry will have more options for advertising as society becomes more accepting of their product.

"The world of cannabis marketing is really opening up. We've worked with Clear Channel and are about to run another billboard with Outfront Media. As the general public warms to the idea of cannabis as a tool for wellness — not intoxication — the traditional marketing world will follow," said Wood.

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News Moderator: Jacob Redmond 420 MAGAZINE ®
Full Article: Medical Marijuana Ads Light Up Bay Area Broadcast
Author: Roland Li
Contact: Contact Box
Photo Credit: Magnolia Wellness
Website: BizJournals
 
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