Rule number one of marketing marijuana: Avoid stoner clichés

Have there ever been so many different names for a product? Weed, dope, herb, joint, ganga and grass are just a few of the hundreds of words used as colloquial terms for marijuana, and it is claimed that the drug can treat depression, anxiety, insomnia, migraines and more.

With a variety of applications, combined with the legalisation of the drug for recreational or medicinal purposes in several U.S. states, comes opportunity: the value of the marijuana market is expected to reach US$21 billion in the U.S. by 2020, up from US$6.7 billion in 2016, according to brokerage company Convergex, in a note released this week.

But while there are certain groups of consumers that are already sold on the drug, either as a way to get high after a long day, or for medicinal purposes, the opportunity for entrepreneurs and investors is in reaching the “clueless and curious” consumer, according to Pamela Johnston, senior vice president of strategy and special projects at cannabis advisory services company Electrum Partners.

“When you think about a cannabis product or service, it doesn’t lend itself to all of your traditional types of advertising and marketing, not only because of legality but because you have a very curious consumer - we’re going to make a gross generalisation - who is ‘clueless’ as well,” she told CNBC.com.

“So if you have a clueless, curious person, even if you were a cannabis enthusiast, how could you really be educated [about the product] unless it was part of your job or your life’s passion? This combination – of clueless and curious - is very interesting because it lends itself to trial and that’s what you want. People are willing to try and have varied experiences.”

With legalisation at state level come new products. Leafly is an app and website that lets people search their local area for cannabis dispensaries and buy smoking accessories, and claims it was on track to exceed 50 million page views per month by the end of 2016. Leafly is owned by Privateer Holdings, a group which has raised US$122 million in funding. It also owns Tilray, which exports medical cannabis products from North America to the E.U.