Dispensary Marketing in 2025: Winning Local Search and AI Visibility for Cannabis Retailers

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

Location alone no longer guarantees customer traffic for dispensaries. Today, search rankings, online reviews, and AI-driven visibility are key drivers of consumer engagement.

Cannabis tourism generated around $10.23 billion in 2023 and is projected to reach $23.73 billion by 2030, according to Grand View Research. However, market realities suggest growth may not be that straightforward. For instance, Colorado, a mature adult-use market, has seen cannabis spending decline since 2021, with 2024 sales hitting their lowest since 2018.

This decline partly reflects the fading novelty of traveling for legal cannabis. With more states legalizing adult use and hemp-derived THC products, consumers have less reason to travel for cannabis. The question arises: should dispensaries near airports invest in digital ads targeting arriving tourists?

Targeting Tourists: The Reality Check

Airport advertising aims to raise brand awareness quickly. The idea is that travelers see your ad upon arrival and either order immediately or recall your dispensary later. Yet, our consumer survey reveals a split: 52.7% of traveling consumers bring cannabis with them, while 47.3% purchase at their destination.

Interestingly, airport proximity ranks lowest among factors travelers consider when choosing a dispensary. Most tourists search generically—“dispensary near me”—rather than by brand name. This means strong local search visibility outweighs flashy airport ads.

Why Local SEO Should Be Your Priority

Whether targeting locals or visitors, optimizing for local search is crucial. Acquiring new customers can cost up to seven times more than retaining existing ones, making locals a more cost-effective focus. Additionally, locals often influence tourists’ choices through recommendations, which matter almost as much as price and product selection.

Local customers aren’t just valuable buyers—they’re your best marketers. SEO captures them at the exact moment they intend to buy.

Google Business Profiles: The Essential Tool

A leaked Google algorithm document from May 2024 sheds light on how search rankings function. One major takeaway is the importance of Google Business Profiles (GBPs). If you haven’t claimed yours, do so immediately and optimize it thoroughly.

GBPs are one of the few platforms where cannabis businesses face no advertising censorship and compete on equal footing with traditional businesses. They influence local search rankings based on relevance, reviews, and proximity.

Make sure your dispensary is categorized correctly as a “cannabis store” to show up in relevant searches like “dispensary near me.” Actively encourage customers to leave positive reviews, as volume and rating both affect visibility.

Building Authority Beyond Your Website

Google evaluates businesses as whole entities—not just their websites. This includes how your business is referenced across the web and whether your site content establishes authority in your field.

Focus your website content on what you sell and where. Every page should reinforce your identity as a cannabis retailer in a specific location. Blogs or educational content should always link back to cannabis products and purchasing options.

Contrary to traditional SEO beliefs, backlinks are becoming less important than authoritative mentions. When reputable cannabis industry sites or directories talk about your dispensary, it sends strong credibility signals to Google. Running public relations campaigns to earn such mentions is a smart move.

Also, submit your dispensary info to multiple trusted business directories and keep these listings accurate. Conflicting information can hurt your search rankings.

Optimize for Multiple Locations

If you operate multiple dispensaries, each location should have its own unique webpage. This helps with local rankings and improves user experience by offering tailored details like hours, product menus, parking, and directions.

Follow the principle of “one page per keyword.” For example, if you want to rank for “dispensary near Capitol Hill,” create a page specifically targeting that area.

Dispensary Marketing Priorities for 2025

• Claim and optimize your Google Business Profile
• Ensure your business is correctly categorized as a “Cannabis Store”
• Collect and encourage customer reviews consistently
• Build authoritative mentions and local citations
• Create dedicated landing pages for each physical location
• Optimize content for AI-driven search engines

The Rise of AI in Search

Search is shifting from traditional algorithms to AI-powered results. While technical factors matter, the main focus should be ensuring AI engines have enough trust signals about your business to recommend it for relevant queries.

With limited marketing budgets, dispensaries should invest in building organic visibility through Google Business Profiles, optimized website content, and authoritative mentions. SEO is a long-term strategy, but its benefits are lasting.

Key Questions About Dispensary SEO and AI Search

• Why is local SEO important for dispensaries?
  It ensures dispensaries appear in “dispensary near me” searches, capturing buyers at the moment of intent.
• How do Google Business Profiles impact dispensary marketing?
  GBPs influence local rankings through relevance, reviews, and proximity. They are essential for cannabis retailers.
• Should dispensaries focus more on locals or tourists?
  Locals offer higher long-term value and word-of-mouth marketing; tourists are more occasional buyers.
• Do backlinks still matter for dispensary SEO?
  Backlinks have less impact now compared to authoritative mentions in cannabis media and directories.
• How is AI changing dispensary search results?
  AI-powered search favors businesses with strong profiles, accurate citations, and trusted mentions, making optimized content crucial.

For marketers in cannabis retail, the path forward lies in solid local SEO foundations combined with adapting to AI-driven search dynamics. Prioritize authenticity, accuracy, and trust-building to secure lasting visibility and customer loyalty.