Behind Weedmaps' strategy to reach more users as cannabis goes mainstream

Fresh off its IPO in June, Weedmaps is making several marketing moves to advance the mainstream consumption of cannabis. The technology platform, which works with more than 17,000 business listings as a cannabis directory and delivery service, is strategically partnering with key organizations that will position the brand for mainstream audiences. Today, the 13-year-old company is announcing a multi-year partnership with basketball star Kevin Durant and his Thirty Five Ventures, whose co-founder is Durant’s manager Rich Kleiman, as well as a sponsorship program with Thirty Five Ventures’ sports business media network Boardroom. On top of that, in a new deal with Apple, Weedmaps has a new iOS app, out last week, that allows people to order weed straight from their phones. For Chris Beals, who became CEO of Weedmaps in March 2019, the pace of cannabis legalization across the U.S., especially in key markets like New York, means the company can now focus on reaching broad audiences, not only people in specific cannabis jurisdictions. “We’ve hit the tipping point of where this is an issue of general consumption and general applicability,” says Beals. “We’ve entered a new phase of how we think about partnerships, relationships, reaching audiences. I think for us, it’s about making the right strategic steps that are going to look good and feel good and having partners who can grow with us, given how fast we’re growing.” Weedmaps’ business is indeed on a steady upwards projectile. Cannabis is now legal for medical purposes in 37 states, with recreational use legal in 18 states and Washington D.C. Weedmaps’ parent company WM Holding Company went public in June and last week shared its first earnings, in which the company announced second-quarter revenue increased to $47 million, a 21% increase from the same time last year. Meanwhile, monthly active users increased to 12.3 million as of June 2021, up 75% from the same period last year. WM sees an average of $3,706 per month for every user. The partnership with Thirty Five Ventures is an effort to further destigmatize weed among sports fans and transform the conversation to one about how cannabis can help with wellness and recovery, part of Weedmaps’ ongoing initiative around education. When Sha’Carri Richardson was suspended from the Tokyo Olympics for cannabis use this summer, it proved to the world that there’s still deeply rooted stigma around athletes’ use of cannabis. “The IOC had been testing it wrong and portrayed weed as a controlled substance similar to how we were marketed it when we were younger,” says Kleiman. “There’s too many stories of great athletes that have used it for incredibly beneficial reasons …There’s players just form the wear and tear of being a professional athlete that would be way better suited to have a healthy relationship with cannabis than taking opioids or anything else they need to sleep. That’s a real problem. This is an important relationship to really talk about it with the consumer and destigmatize it.” As part of the partnership, Weedmaps will become the official sponsor of Boardroom, which has evolved from a YouTube channel and ESPN+ show into a media company reaching primarily males ages 18 to 35. There will be sponsored editorial and video coverage of the cannabis space on Boardroom and the Weedmaps’ platform with the involvement of Durant and other athletes that will come on board, a sponsored four-part content series slated for 2022, and co-branded collaborations, events and exclusive merchandise. The partnership was formed with flexibility in mind so that Weedmaps and Boardroom can be reactive to the ever-evolving space. “[The cannabis industry] is different now than it was nine months ago, and it will be different nine months from today,” says Beals. The partnership kicks off today with a Boardroom "Out of Office" podcast where Durant sits down with Beals and Kleiman to discuss the partnership’s impact in the industry and the challenges ahead. “Now more than ever, there is so much opportunity for growth in the cannabis industry as well as the removal of any remaining stigmas around its use,” said Durant in a statement. “As a technology leader in the industry, Weedmaps has consistently been at the forefront of change over the last decade. In partnering with Boardroom and Thirty Five Ventures, they’ve shown an even bigger commitment to innovation.” Another way Weedmaps is reaching a mainstream consumer base is through its new iOS app that was updated last week, expanding on its online delivery service. Consumers in the 37 U.S. states where cannabis is medically legal as well as international countries like Canada, Spain and the Netherlands—where cannabis has been legal for far longer—can now order cannabis and have it delivered from their local dispensaries and retailers. Users in the app can also browse through reviews and local deals, find the best weed strain for them and learn about cannabis topics like legalization. U.S. consumers still can’t pay within the app due to federal legalities, so they pay upon delivery. Weedmaps was able to create an iOS app after Apple lifted its ban on cannabis apps in July. “It was a nuanced discussion,” he says. “Apple wanted to understand how we vet and made sure made sure only accredited, licensed retailers and brands were on the platform.” The next step for Weedmaps is to get on Android phones.

Behind Weedmaps' strategy to reach more users as cannabis goes mainstream

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