Twitter on Wednesday updated its advertising policies to allow cannabis ads to run on its service in states where cannabis is legal, making it the first major social media platform to do so. The move could open up a new revenue stream for the company, which has been struggling in the wake of regulatory pressures.
Twitter's new advertising policy allows significantly more cannabis than other major platforms like Instagram, Facebook, and TikTok. The ads will be limited to states where cannabis is legal, and Twitter will require pre-authorization for all cannabis-related ads. Ads for products that contain cannabidiol (CBD) and tetrahydrocannabinol (THC) will be allowed, as well as ads for products with "ancillary cannabis-related content."
The policy change comes after Elon Musk's Twitter on Wednesday became the first social media platform to allow cannabis companies to market their brands and products in the United States. The move could open up a new revenue stream for the company, which has been struggling in the wake of regulatory pressures.
The new advertising policy is a major shift for Twitter, which had previously banned cannabis advertising due to its legal status in the United States. However, the company has been gradually loosening its restrictions on cannabis-related advertising. In 2016, the company began allowing some cannabis-related ads, but only in states where it was legal.
Twitter's new policy is a big win for the cannabis industry, which has long been shut out of mainstream advertising platforms due to its status as a federally illegal substance. Mainstream advertising platforms have been reluctant to serve a federally illegal industry, in part due to concerns about existing laws and regulations.
The policy change will also benefit advertisers, as it will give them access to the millions of users who use Twitter every day. With the new policy in place, cannabis companies will be able to reach a wider audience and potentially increase their sales.
Twitter permits approved cannabis and CBD products to target U.S. consumers, with restrictions including pre-authorization and no direct purchase capabilities. The company also prohibits ads for any cannabis products that are illegal under U.S. federal law or that are illegal in the state where the ad will be seen.
With the new policy in place, Twitter could become a major advertising platform for the cannabis industry, which has long been shut out of mainstream platforms due to its status as a federally illegal substance. This could open up a lucrative new revenue stream for the company, as well as provide a new avenue for cannabis companies to reach potential customers.
