Despite a booming legal cannabis industry generating over $33 billion in U.S. sales in 2023, cannabis dispensaries across the nation continue to face steep challenges when it comes to advertising their products and services. Legal in 24 states for recreational use and 38 for medical use as of early 2025, cannabis remains federally classified as a Schedule I drug—a contradiction that creates a murky and restrictive environment for marketers in the space.
At the heart of the issue lies federal regulation. Major tech companies like Meta (Facebook and Instagram), Google, and YouTube maintain strict policies prohibiting or heavily limiting cannabis-related advertising, regardless of state legality. “Because cannabis is still illegal federally, platforms fear liability or losing advertisers,” said Lisa Buffo, founder and CEO of the Cannabis Marketing Association, in an interview with AdAge. “Dispensaries are often penalized for even using terms like ‘cannabis,’ ‘weed,’ or showing images of the plant.”
The result? Dispensaries are forced to get creative—or stay silent. Many rely on SEO-rich content marketing, text-message campaigns, and in-store promotions to reach their audiences. Others skirt around restrictions by using euphemisms or coded language in ads, risking content takedowns or account suspensions.
Even billboards—once a lifeline for cannabis brands—are under scrutiny. In states like California, dispensaries can’t advertise on highways that cross state lines. Meanwhile, local governments have imposed additional restrictions on placement and content. In 2021, the California Bureau of Cannabis Control issued guidance banning billboard ads along certain interstate routes, causing confusion and legal backlash.
“It’s ironic,” said Dr. Amanda Reiman, Chief Knowledge Officer at New Frontier Data, “that cannabis companies, which operate legally under state licenses and regulations, can’t run basic advertisements while alcohol and pharmaceutical companies flood the airwaves with commercials.”
Social media is particularly treacherous ground. A 2023 MJBizDaily survey found that 66% of cannabis companies had their social media accounts suspended or deleted at least once, often without clear explanation. Instagram and Facebook’s algorithmic moderation systems flag even educational or advocacy content, lumping all cannabis-related material into a prohibited category.
Dispensaries serving medical patients are not exempt from these issues. Platforms do not differentiate between adult-use and medical cannabis content, which stifles education and outreach efforts to vulnerable patient populations. “The inability to advertise limits our ability to inform patients about safe and legal access,” said James Kahn, a dispensary owner in Florida.
Industry professionals are pushing for reform. Some advocate for clearer federal guidelines and protections similar to those afforded to alcohol and tobacco marketers. Trade organizations like the National Cannabis Industry Association (NCIA) are lobbying for the SAFE Advertising Act, a proposed bill that would permit regulated cannabis companies to advertise on digital platforms in states where cannabis is legal.
In the meantime, brands like Weedmaps and Leafly are carving out alternative ad ecosystems specifically designed for the cannabis space. These platforms offer dispensaries a safer space to promote deals, events, and new products without fear of deletion. However, reach is still limited compared to mainstream ad channels.
As the cannabis industry matures, dispensary owners hope legislation will catch up with the reality on the ground. Until then, navigating the fragmented patchwork of state rules and federal bans remains a costly and frustrating part of doing business.
Related Article: Social Media and Cannabis: A Murky Digital Landscape for Users and Businesses