Local Search Tuesdays is back, and this episode is a big one.

SearchLab just released the largest SEO study ever conducted for cannabis dispensaries. If you operate in a regulated industry, manage multiple locations, or rely on organic visibility because paid ads are limited or off the table, this data matters to you even if you are not in cannabis.

This study is not a theory. It is built on thousands of real businesses, real rankings, and real performance gaps. It shows what separates the dispensaries that dominate the map pack from the ones stuck fighting for scraps.

Let’s break down what we studied, what we found, and why the takeaways apply far beyond cannabis.

Why We Studied Cannabis Dispensary SEO

Recreational cannabis is legal in nearly half of the United States. But from a marketing perspective, dispensaries still operate with one hand tied behind their back.

Because marijuana remains illegal at the federal level, most dispensaries cannot run paid search ads. That makes SEO the primary growth channel. No safety net. No fallback.

That combination makes cannabis a perfect industry to study local SEO at its purest. When SEO is the only real option, businesses either do it right or they lose.

We wanted to answer a simple question.

Are the dispensaries ranking at the top actually following local SEO best practices more closely than the ones lower down?

How the Study Was Built

This was not a small sample or a surface-level analysis.

We pulled data on the dispensaries ranking in the top 20 positions of the local finder. That is the expanded view you see when you click “More places” under the map pack, not just the top three.

Here is how the dataset came together:

• Searches were run across the 24 largest U.S. cities where recreational cannabis is legal
• Keywords included cannabis dispensary, cannabis delivery, weed store, dispensary, pre-rolls, THC edible, weed delivery, and similar high-intent terms
• Data was pulled primarily using Places Scout, with Ahrefs used for link and keyword analysis
• Over 150 data points were collected for every ranking business
• Non-dispensary listings were removed

After cleaning the data, the final study included 3,475 cannabis dispensaries.

We then compared industry averages and, more importantly, contrasted dispensaries ranking number one in the map pack against those ranking around number ten.

The goal was to isolate what top performers were doing differently.

The Local SEO Benchmarks That Stood Out

Once the numbers were crunched, several patterns jumped out immediately.

Some confirmed what we already suspected. Others were more surprising.

Most Dispensaries Are Missing Basic Tracking

One of the simplest and most overlooked findings was this:

68 percent of dispensaries do not have UTM tracking on the website link in their Google Business Profile.

That means the majority of operators have no clean way to measure how much traffic, engagement, or revenue is coming from their GBP.

For multi location brands spending real money on marketing, this is a blind spot you cannot afford. If you do not track it, you cannot optimize it. And if you cannot prove impact, budgets get cut.

Category Confusion Is Widespread

We found 29 different primary categories being used across dispensary Google Business Profiles.

There is only one correct primary category for this business type: cannabis store.

Category selection is one of the strongest relevance signals in local SEO. Getting it wrong sends mixed signals to Google and limits how often you appear for high-intent searches.

This is one of those issues that is easy to fix and surprisingly common among lower-ranking locations.

Reviews Are Not Optional in This Space

On average, dispensaries in the study had:

• 1,011 reviews
• A 4.7 average rating

That number alone should reset expectations for anyone entering or expanding in a competitive local market.

In industries where ads are limited or banned, reviews are not just social proof. They are a ranking asset and a conversion driver.

If your locations are sitting at a few hundred reviews while competitors are north of a thousand, you are not on a level playing field.

The Real Value of Ranking Higher in the Map Pack

One of the most eye-opening parts of the study focused on traffic value.

Ahrefs estimates how many keywords a business ranks for, the clickthrough rate of those positions, and what it would cost to buy that same traffic via paid search.

Dispensaries cannot actually run those ads. But the dollar value gives us a useful benchmark for how much organic visibility is worth.

When we compared dispensaries ranking number one in the map pack to those ranking around number ten, the difference was staggering.

The gap in estimated monthly traffic value was $252,642.

Let that sink in.

If paid search were allowed, a dispensary ranking tenth would need to spend over $250,000 per month just to match the organic traffic earned by the number one spot.

That delta alone explains why SEO is not optional in this industry. It is the growth engine.

What High-Ranking Dispensaries Do Better

While the full report dives deep into dozens of data points, the pattern is clear.

Top-ranking dispensaries are not winning by accident. They are more consistent with the fundamentals.

They tend to:

• Use the correct primary category
• Have stronger review velocity and volume
• Maintain cleaner, more complete Google Business Profiles
• Earn more links and brand mentions
• Rank for a broader set of relevant keywords

None of this is flashy. It is disciplined execution over time.

For multi location operators, this is where operational maturity shows. The brands that treat local SEO like a system outperform those that treat it like a one-time task.

Why This Study Matters Beyond Cannabis

Even if you do not work in cannabis, the lessons apply directly to other restricted or competitive categories.

Think healthcare, legal, financial services, automotive, or franchised home services.

In all of these industries:

• Paid media is expensive, restricted, or crowded
• Local intent drives high-value conversions
• Small ranking differences create massive traffic gaps

Cannabis just removes the crutch of paid ads and exposes the truth faster.

If SEO is weak, growth stalls. If SEO is strong, the upside is enormous.

What to Do With This Data If You Manage Multiple Locations

If you are responsible for five, ten, or fifty locations, this study should trigger a few hard questions.

• Are all locations using the correct primary category
• Are UTMs implemented consistently across every GBP
• Is review generation a system or a hope
• Do underperforming locations follow the same standards as top performers
• Can you clearly explain why one location ranks better than another

If the answer to any of those is no, you have opportunity sitting on the table.

Local SEO at scale is not about hacks. It is about removing inconsistency.

Key Takeaways

• This study analyzed 3,475 cannabis dispensaries across major U.S. markets
• 68 percent of dispensaries do not use UTM tracking on their Google Business Profile
• Only one primary category is correct for dispensaries, yet 29 variations were found
• The average dispensary has over 1,000 reviews with a 4.7 rating
• Ranking first versus tenth in the map pack represents an estimated $252,642 monthly traffic value gap
• High-ranking locations follow local SEO fundamentals more consistently
• The lessons apply to any competitive or regulated local industry

VIDEO TRANSCRIPT

Welcome back to another episode of Local Search Tuesdays. This week, I’ve got an exciting new study to share with you. We’ve just released the largest SEO study ever conducted for cannabis dispensaries!

Last week, we released another massive Local SEO study, and this time we concentrated on cannabis dispensaries. Recreational weed is legal in almost half of the United States now, but dispensaries can’t run ads since marijuana is still illegal at the federal level. Since it’s still a new industry and SEO is the only option for marketing, we wanted to dig in and see what’s really working.

We used Places Scout to pull most of the data with a bit of help from ahrefs for the link and keyword analysis. To seed our list of dispensaries to look at, we searched for “cannabis dispensary”, “cannabis delivery”, “cannabis store”, “dispensary”, “pre-rolls”, “recreational dispensary”, “THC edible”, “weed delivery”, and “weed store” in the 24 largest cities where recreational weed is legal. I’m not gonna list all the cities, you can check out the study to see them if you’re curious.

We pulled over 150 data points on every business that ranked in the top 20 positions in the local finder, which is the page that expands the local map pack beyond the top 3. We removed any businesses that weren’t dispensaries and then crunched the numbers. That gave us 3,475 dispensaries in the study.

The study shares industry averages, and it also compares the dispensaries that rank number one in the map pack with dispensaries that rank number ten. We wanted to see if the higher-ranking dispensaries were more closely following SEO best practices.

Head over to bit.ly/dispensary-seo-study to check out all of the data. Let me tease some of the insights for you: 68% of dispensaries don’t have UTM tracking on their website link on their GBP. There were 29 different primary categories selected on dispensary GBPs - but the only correct primary category is “cannabis store”. Dispensaries averaged 1,011 reviews and a 4.7 review score.

One of the most interesting findings was the value of better visibility. While it’s not a perfect number, ahrefs tracks the number of keywords a business ranks for in search results. It then cross-references the ranking position with the clickthrough rate for that position and what it would cost in PPC to buy the same amount of traffic. 

Yes, dispensaries can’t run ads, but the number provided is meant to give you an approximate “value” of the organic traffic a business is earning. When we compare the number between position one dispensaries and position ten dispensaries, the difference was $252,642. In other words, if dispensaries were allowed to run paid search ads, the guys ranking number ten would have to spend over $250,000 a month to match the traffic the stores at number one are getting. So, this proves that SEO is incredibly valuable for dispensaries that want to grow their bottom line.

Head over to bit.ly/dispensary-seo-study today and download a copy of the report. The data in the report is a gold mine for dispensaries - you’ll see exactly what you need to do to beat your competition.

That’s all the time we have left for this week’s episode, so you know what that means. Put your hand on the screen right here: We totally just high-fived ‘cause you learned something awesome. Thanks for watching, and we’ll see you again next time for another episode of Local Search Tuesdays.