How Cannabis Brands Can Win with OOH Advertising

Out-of-home (OOH) advertising covers every form of marketing that happens in public space—billboards, murals, bus shelters, vehicle wraps, event signage, and digital screens in high-traffic areas. For cannabis brands, it’s one of the only ways left to reach people directly. But it’s also one of the most complicated. Every state has its own advertising laws, and many cities layer on their own restrictions about placement, content, and audience. What works in California could be illegal in Colorado. Getting it wrong can waste money or trigger penalties, but getting it right can make a brand look credible overnight.

At The Hood Collective, we help cannabis companies navigate that challenge. We’ve worked with brands in multiple states, each with different rules, audiences, and design requirements. Our job is to make sure OOH campaigns stay compliant without losing their visual punch or clarity. When planned carefully, OOH becomes more than exposure—it becomes proof that your brand belongs in the public eye.

Understanding Cannabis OOH Regulations and Compliance Requirements

Out-of-home for cannabis is governed at multiple layers. States set the baseline. Cities and counties often add extra rules. The result is that what is legal on one side of a county line can be illegal on the other. For example, Washington’s state code sets detailed ad limits and then many municipalities add their own zoning or sign rules on top. Denver, Colorado, goes further and bans marijuana businesses from using billboards and other outdoor general advertising devices within city limits even though state rules allow some billboard ads. (Washington State Legislature+1)

Common placement restrictions include distance buffers from places where minors are present. Washington prohibits any cannabis advertisement within 1,000 feet of schools, playgrounds, recreation centers, child-care facilities, public parks, libraries, or game arcades that admit minors. Colorado bars outdoor signs within 500 feet of elementary or secondary schools, places of worship, and public playgrounds. California law bars advertising within 1,000 feet of K–12 schools, day care centers, playgrounds, or youth centers. These numbers are state-specific and enforced. Always verify the local overlay before you buy media. (Washington State Legislature+2Legal Information Institute+2)

Highway and transit rules are a separate trap. California prohibits cannabis ads on billboards located on any interstate highway and on any state highway that crosses the California border. After a 2020–2021 court challenge, the state confirmed that licensees must not place new ads in those locations and should remove any that do. Washington bans cannabis ads on public transit vehicles and in transit shelters statewide. Local transit authorities in other states may impose their own bans. (Washington State Legislature+4Justia+4Davis Wright Tremaine+4)

Content and audience standards are just as strict. Washington requires that all cannabis ads include clear 21+ language and, for non-outdoor placements, a set of health warnings in at least ten percent of the largest type size. Ads may not use imagery or styles that are appealing to youth and may not depict cannabis plants or products in outdoor ads. Massachusetts requires prominent health warnings in cannabis advertising and restricts sponsorships and promotions unless the audience is reasonably expected to be 21 or older based on reliable composition data. Oregon prohibits advertising that targets individuals under 21 and bars claims of curative or therapeutic effects. (Washington State Legislature Mass.gov Oregon Secretary of State+1)

Municipal rules can be stricter than state rules, which is why vendor selection matters. A competent OOH partner will map every proposed face against current state and local restrictions, document buffers, and flag transit or school proximity issues before you commit. In jurisdictions like Denver, where city policy forbids billboards for marijuana businesses, the vendor should steer you to compliant alternatives or you risk buying inventory you cannot legally use. Legal review should confirm that your creative and placement meet the most restrictive applicable rule set. (Denver Government)

Build compliance into the concept from day one. If a state mandates 21+ text or warnings, design the layout so those elements are legible without crowding the main message. If a market bans product images on outdoor ads, lead with brand assets and wayfinding rather than packs or flower. Keep a file with proofs, vendor affidavits, audience-composition data if required, and a placement map with measured distances to restricted sites. In states like Washington and Massachusetts, those documents align with how regulators expect advertisers to substantiate compliance. (Washington State Legislature+1)

Bottom line. The rules change by state and often by city. Verify state law, then check municipal code and transit policies for every face you buy. Use vendors who can produce written compliance support and have your attorney review final placements and creative. That workflow keeps you visible and out of trouble.

Why Great Design Is Non-Negotiable in Cannabis OOH Advertising

Out-of-home campaigns are expensive. Between media placement, printing, and installation, even a small run adds up fast. That’s why many cannabis businesses try to cut costs on the one thing they think they can control: the design. They either hire a cheap freelancer who doesn’t understand OOH, or they let the OOH company include the design as part of the buy. On paper, that sounds efficient. In reality, it’s how most cannabis billboards end up looking generic.

For large national advertisers, the OOH company’s creative team can produce great work—they’re motivated by a big budget and long-term contracts. For smaller cannabis operators, it rarely works out that way. You’ll get something technically correct and legally compliant, but it won’t feel like your brand. It’ll look like filler art dropped in to fill a space. When that happens, you’ve paid for exposure without earning recognition.

Good design is the part that makes your investment stick. It’s the difference between people noticing your logo and people remembering it. OOH design needs to communicate in seconds. That means one clear message, a readable name, and a layout that still works when someone’s driving past or walking with their phone in hand. It also means planning around compliance—building the 21+ disclaimer or required language into the design from the start so it looks intentional, not like an afterthought.

When we worked with New Dia Fenway, we faced that exact balance. The dispensary wanted to reach Red Sox fans, college students, and tourists near Fenway Park by placing ads on recycling receptacles throughout the neighborhood. The creative had to feel local and confident, not loud or stereotypical. We built a clean, consistent design that mirrored New Dia’s brand vibe—modern and approachable—while staying legible on smaller surfaces that people passed quickly. By the end of a game day, anyone walking the area had seen the name several times. That repetition, paired with clear design, built instant familiarity.

If your budget is tight, spend less on placements and more on creative. A smaller, well-designed campaign will outperform a larger, poorly executed one every time. OOH isn’t about how many surfaces you buy—it’s about whether anyone remembers seeing them.

Integrating OOH into a Complete Cannabis Marketing Strategy

OOH works best when it’s part of something bigger. A billboard, mural, or digital screen might create awareness, but that awareness only turns into sales when your other marketing reinforces it. The goal is for people who see your ad on the street to recognize you again when they walk into a dispensary, scroll social media, or search online. Every touchpoint should connect.

Start by matching your OOH message to what people see in-store and online. If your billboard says “Find Your Flow,” your website header, packaging, and Instagram bio should carry the same tone and language. Consistency builds trust. People assume a brand that looks and sounds the same everywhere knows what it’s doing. It’s also how smaller operators compete with national players—you can’t buy their reach, but you can match their discipline.

Digital OOH (DOOH) adds another layer. Many cannabis markets now allow digital placements in private networks—screens in convenience stores, gyms, or event venues—where you can rotate different creatives throughout the day. That flexibility lets you test messages or adjust based on timing and audience. A morning commuter might see one version focused on energy or wellness, while an evening crowd sees something positioned for relaxation. It’s still the same campaign, just smarter targeting.

OOH also pairs naturally with local events and community activations. If your brand sponsors a concert, festival, or cleanup, run OOH in that same area during the same week. The repetition cements the connection between your name and the community. People don’t separate what they see on a wall from what they see on a banner or tent—they just recognize that you’re present and active.

Think of OOH as your public storefront. It’s the most visible expression of your brand and often the first impression for people who haven’t visited your dispensary or followed you online. If the creative looks professional and confident, it lifts the credibility of everything else you do. The design on the billboard should feel like an extension of your packaging, your store signage, and your social feed—a single, recognizable voice moving between spaces.

When you treat OOH as the face of your brand instead of a one-off campaign, it stops being just an expense. It becomes a foundation for how people see and remember you, both online and off.

What Cannabis Brands Can Learn About OOH ROI From Other Industries

Mainstream industries like retail, restaurants, and automotive have been testing and refining OOH for decades. They know exactly how to tell whether a billboard or digital screen is working. Cannabis brands can use the same playbook—just scaled to fit smaller budgets. The secret isn’t complex analytics. It’s knowing what to measure and tracking it consistently.

Start by setting one clear goal for each campaign. Before the first ad goes up, decide what success looks like. Maybe it’s more first-time customers, more traffic to your online menu, or more people from a specific neighborhood visiting your store. Pick one. Trying to measure everything guarantees you learn nothing.

Next, use basic retail math. Take your total OOH spend and divide it by the extra revenue or new customers you gained during that period. That gives you a rough cost per customer or cost per sale. It’s not perfect, but it gives you a real number to compare next time. Big advertisers do this constantly—they aren’t guessing, they’re benchmarking.

Set local expectations. In most industries, a three-to-one return (three dollars back for every dollar spent) is considered a healthy awareness campaign. If your results come in lower, adjust. Maybe the placement wasn’t high-traffic enough, or the design didn’t pop against its surroundings. Test a different message or move a few blocks over and see if your ratio improves.

Pair your campaign with simple tracking tools. Use unique promo codes or vanity URLs tied to each billboard or display. Train staff to ask new customers where they heard about you. It’s old-school, but it’s still how local businesses capture attribution.

Then, watch your digital signals. After an OOH campaign launches, check for bumps in branded search volume, Google Maps direction requests, or website visits. These are the same indicators major consumer brands rely on to measure awareness. You don’t need advanced software—just check Google Business data and your website analytics weekly during and after the campaign.

Finally, log everything. Keep a spreadsheet with dates, locations, creative versions, spend, and results. After a few runs, you’ll start seeing patterns—maybe certain neighborhoods deliver stronger returns, or weekend placements outperform weekdays. That’s real data you can use to plan smarter next time.

The real lesson from established industries isn’t about spending more—it’s about discipline. Measure the same things every time. Keep records. Compare results. Within a few campaigns, you’ll know what works in your market better than anyone else.

Making Cannabis OOH Advertising Work for You with The Hood Collective

OOH gives cannabis brands something digital can’t—public presence. It’s how a small dispensary or product line starts to look like a real brand in the community. But it only works when every piece fits together: compliance that keeps you safe, design that people actually notice, integration that connects your message across platforms, and consistent measurement that tells you what’s worth repeating.

At The Hood Collective, we work with cannabis companies that want their marketing to feel as intentional as their product. OOH is one of the most powerful ways to do that because it forces focus. You can’t hide behind endless content or paid algorithms. You have one moment in public space to define who you are. Get that right, and every other part of your marketing gets stronger.

Disclaimer:This article is for informational purposes only and does not constitute legal advice. Cannabis advertising laws and regulations change frequently and vary by state and municipality. Always consult with legal counsel and verify the latest local rules before launching any out-of-home campaign.