Brands Breaking New Ground: Marijuana and Sports Betting
In two seemingly distant categories, weed and sports betting are increasingly moving towards the mainstream giving new opportunities for established brands as well as fertile grounds for start-ups. Marketers can learn from the ways consumers have reacted to the legalization and the early success stories in each space.
During a recent strategic project for a fast-growing sports betting app, I identified a few key lessons to keep in mind when approaching these markets in transition:
Black market doesn’t always mean bad experiences
Many bettors talked about the ways in which their illegal bookies had moved with the times. Digital transformation isn’t just for major corporations. Using digital wallets, encrypted messaging, and even cryptocurrencies, bookies could offer a positive experience to their customers. In the same way, the strong and personal relationship that some marijuana customers have with their previous channels of commerce is a barrier that needs to be overcome. Regulations and an increased price point mean that in some instances it can be more attractive to just keep on doing what you’re doing.
Old prejudices die hard
“Degenerate” is the first word that comes to mind for one committed sports bettor. It’s said with a grin, relishing the world of illegal sports betting and flashy spending in trips to Vegas. While some consumers have long ago overcome the cultural barriers associated with a frowned upon pastime, there are many who only now are starting to feel comfortable enough to try. Younger bettors in particular had less negative associations overall, and were more willing to try new games.
Time to double down or check out
Brands can take two broad approaches to dealing with the cultural baggage associated with these highly loaded categories. Some, like fantasy sports brand DraftKings, double down, upping the stereotypical bro-energy and appealing to the old guard. Others look to be more democratic, or even wrap themselves in the semiotics of completely different worlds: just look at the success of the medical/wellness influenced marijuana brand Dosist.
Fight for first
State-by-state legalization means that the sports betting market is increasing piecemeal. And as each new state comes online, the most engaged illegal customers jump to the first entrant, capitalizing on early promotions. Once they’re in, they’re hard to dislodge. Differing regulations can allow small players in different markets to get a head-start, whether in gambling or weed.
These lessons add up to a choice for brands in both these markets: do they try and take the best of the old world, or do they expand and claim new territories by breaking out of the expected patterns?