Dispensary Marketing in 2025: Google, AI, and Local Search

How Dispensaries Can Win with Local SEO and Tourist Search Trends

According to Grand View Research, cannabis tourism generated approximately
$10.23 billion in 2023. Grand View analysts project the sector will hit
$23.73 billion by 2030. While optimistic forecasts are welcome, those of us
working in this tightly regulated industry have good reason to doubt the
United States market will experience such rapid growth.

Take Colorado, for example. Despite being a mature adult-use market, the
state’s Department of Revenue has reported year-over-year declines in
cannabis spending since 2021. In 2024, sales reached their lowest point
since 2018.

There’s no singular cause for the drop, but the novelty of visiting
Colorado for a legal high may have worn off. With twenty-four states
offering legal adult use and others enabling thriving hemp-derived THC
markets, there’s less incentive to travel. If a similar experience is
available nearby, why fly?

Ironically, this decline has led many dispensaries, especially those near
airports, to ask whether they should invest in outbound digital advertising
aimed at incoming tourists. While the logic is understandable, my agency
wanted to know if the idea had legs or was just wishful thinking. So, we
conducted a consumer survey to find out.

Advertising to tourists at the airport is a form of awareness play. The
idea: A visitor lands, opens their phone, sees your ad, and either places
an order or remembers your brand later when searching for a dispensary.
There’s a catch, though: One impression is rarely enough.
[image: Canna-tourism growth vs. Colorado decline and traveler purchase
habits]

The tourist survey we conducted revealed 52.7 percent of traveling
consumers bring their stash with them, while 47.3 percent buy at their
destination. That’s nearly a fifty-fifty split, which is great news for
dispensaries hoping to serve travelers, even if they’re not visiting for
cannabis alone.

But survey respondents ranked airport proximity dead last among the
criteria they consider when searching for a dispensary while on the road.
In addition, most out-of-towners don’t search by dispensary name. Instead,
like locals, they search for “dispensary near me.” This means brand
visibility in local search is far more impactful than a flashy banner ad at
baggage claim.

Whether you’re marketing to locals or tourists, your first priority should
be making sure your business is optimized for search by focusing on your
local audience. According to *Forbes*, acquiring a new customer can cost up
to seven times more than retaining an existing one. That makes locals the
better investment for most dispensary marketing budgets, especially
considering most tourists who responded to our survey indicated dispensary
recommendations from friends and locals were nearly as influential as
product selection and price. Locals aren’t just your most valuable
customers; they’re also your best marketers.

Ultimately, how people find you matters more than who they are. Search
catches people at the moment they’re ready to buy.

In May 2024, a massive Google algorithm documentation leak gave search
engine optimization (SEO) professionals an unprecedented look into how
search rankings actually work. While SEO pros long had relied on inferences
and clues, the leak confirmed many longstanding assumptions and uncovered
some new priorities that matter a lot for dispensaries.

One of the most important priorities the documentation revealed is the way Google
Business Profiles (GBPs) influence the search algorithm. If you haven’t
already claimed a profile for your business, do so immediately. Then
optimize it.

Dispensaries face stricter advertising limits than traditional businesses,
but a GBP is one of the few places that doesn’t censor cannabis businesses.
Better yet, all businesses—traditional and plant-centered alike—play by the
same GBP rules.

GBPs show up in local search results based on relevance, reviews, and
proximity. Dispensaries must ensure they categorize themselves as a
“cannabis store.” Otherwise, they risk not showing up in search results for
terms like “dispensary near me.”

GBPs also collect reviews, much like businesses represented on Yelp and
other directories, and both review volume and positivity matter. Encourage
customers to leave a review on your business’s profile.

Google’s leaked docs also revealed something else: The search giant
evaluates businesses as entities, and websites are only part of the whole.
In addition to considering website traffic and reviews, Google looks at how
businesses are talked about across the web and whether their website’s
content indicates they are an authority in their field.

Consequently, a good strategy for boosting your appearance in search engine
results is to focus your content on what you sell and where you sell it.
Every page should reinforce your identity as a cannabis retailer in a
specific location. If your site includes a blog or educational content,
draw a clear line from every topic back to cannabis products and purchasing.

Another surprise: Conventional SEO wisdom leaned heavily on the value of
backlinks, which are links from other respected sites to yours. It turns
out Google now cares less about backlinks than it does about mentions. If
authoritative industry publications or other relevant sites are talking
about your business, that sends a strong authority signal. The most
impactful signals are those with a clear cannabis context.

This is one of the clearest takeaways from the leak: Positive mentions from
relevant, trustworthy sources help establish your business as legitimate
and successful in its sector.

One way to gain mentions is through well-thought-out, meaningful public
relations campaigns. Media citation campaigns are a foundational local SEO
tactic. Another type of tried-and-true citation campaign involves
submitting your dispensary’s details (name, address, phone number, hours,
etc.) to reputable business directories and local listing services. Listing
your business in multiple directories proves the operation is real and open
to the public. Accuracy counts here, so police the listings every so often
to ensure they remain up to date. Conflicting directory information can
harm a dispensary’s Google visibility.

Also ensure your website has a unique page for each physical dispensary
location. Your homepage can’t be expected to rank for every local query. At
our agency, we follow a simple philosophy: One page per keyword. That means
if you want customers to find you when searching for a “dispensary near
Capitol Hill,” your site should include a page dedicated to that specific
location. If you operate a dispensary in Dupont Circle, for example, a page
devoted to that dispensary might mention the distance to the Capitol
complex along with hours of operation, products, and prices.

Location pages can help you rank locally and create a better user
experience. They allow dispensary chains to include detailed info about
each store—directions, parking, product menus, events—so the customer
doesn’t have to dig.
Dispensary Marketing Priorities

- ✔ Claim & optimize your *Google Business Profile*
- ✔ Ensure correct category (*“Cannabis Store”*)
- ✔ Collect and encourage *customer reviews*
- ✔ Build *mentions* & local citations
- ✔ Create dedicated *local landing pages*
- ✔ Optimize for *AI search*

In addition to traditional SEO strategies, businesses need to be aware of
the emergence of search results augmented by artificial intelligence (AI).
We are in the midst of a transition from traditional search to AI search.

There are some complex technical considerations that AI favors in search
results, but for the most part dispensaries should focus on ensuring these
answer engines have enough information about and trust in your business to
recommend it when consumers ask relevant questions.

Dispensary marketing budgets often are limited, so make every dollar work
smarter by boosting organic visibility. Start with a Google Business
Profile. Optimize your site’s content. Build out citations by earning
relevant mentions. And above all else, invest in strategies that build
trust and visibility for the long term. Search optimization is a long game.
Success won’t be an overnight accomplishment, but it will have lasting
value once achieved.
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Dispensary SEO and AI Search: Key Questions Answered Why is local SEO
important for dispensaries?

Local SEO ensures dispensaries appear in searches like “dispensary near
me,” capturing consumers at the moment they’re ready to buy.
How do Google Business Profiles impact dispensary marketing?

GBPs influence rankings by relevance, reviews, and proximity, making them
essential for cannabis retailers to claim and optimize.
Should dispensaries focus more on locals or tourists?

Locals provide higher long-term value and word-of-mouth marketing, while
tourists are more opportunistic buyers.
Do backlinks still matter for dispensary SEO?

Backlinks are less important than authoritative mentions from
cannabis-related media and directories.
How is AI changing dispensary search results?

AI-powered search engines prioritize businesses with strong profiles,
accurate citations, and trusted mentions, making optimized content even
more important.
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[image: Tyler Jacobson Hybrid Marketing Co]

*Based in Denver, Tyler Jacobson is director of marketing at Hybrid
Marketing Co., a full-service creative agency serving highly regulated
industries including cannabis and hemp. With more than twenty years of
digital marketing experience, he specializes in turning visions into
actionable outcomes by understanding customer needs, simplifying
complexity, and aligning teams around shared goals.*