Less than 50% of CBD consumers are ‘brand loyal’

Less than 50% of CBD consumers are ‘brand loyal’

Less than 50% of CBD consumers are ‘brand loyal’ 1200 800 Liam O'Dowd

Less than 50% of surveyed CBD consumers in the EU are loyal to any one brand, research has shown.

The European CBD Survey by New Frontier Data included feedback from 3,101 respondents in 17 countries across Europe. Survey participants were asked whether they had any medical conditions, and if so whether they used CBD as a treatment. Among participants indicating having Alzheimer’s, 60% reported using CBD to manage their illness; among respondents with ALS, 58% reportedly used CBD. For respondents using CBD as a medical intervention, 76% reported that it improved their medical condition. However, the overwhelming majority (87%) indicated that CBD did not displace any of their medications.

The feedback suggests that CBD is being deployed as a supplement to treatment but not as a substitute for traditional medical interventions.

Despite the positive uptake in CBD by Europeans, the survey also showed that less than 50% of those surveyed had any preference for one particular brand. Brand loyalty was lowest amongst those aged 35-54.

Market share

Market share is a huge challenge for CBD brands in the UK and Europe. With no particular brand having command over a significant market share, raising and sustaining awareness is essential. Previous research by Ipsos Connect and Polar revealed that display and native advertising can have a significant impact on consumer awareness of a brand. In one study, customer awareness increased to 69% after engaging with branded content and display advertising, and purchase intent increased to 51%. Meanwhile, incorporating display ads alongside content improved purchase intent by 17% and did not have any negative impact on brand perception.

Adding display advertising as a channel is a logical step for CBD brands, especially with the challenges and restrictions around paid search and social advertising. Thanks to these restrictions, ambitious brands are investing heavily in content and SEO. At Ripe we work with clients to place advertising campaigns in the places their potential customers are discovering and educating themselves about CBD. Our clients are seeing significant improvements in conversion rates and sales as a result of these campaigns, amplifying their existing efforts.

If you’d like to discuss how a display advertising campaign can help your brand raise its profile amongst the rapidly growing CBD consumer market, get in touch.

Liam O'Dowd

Liam is a co-founder of Ripe with a background in creating growth marketing strategies for D2C e-commerce brands and startups

All stories by : Liam O'Dowd
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