Digital Marketing Strategies and Profitability in the Agri-Food Industry: Resource Efficiency and Value Chains

Agriculture is essential to any country’s economy. Agriculture is crucial not only for feeding a country’s population but also for its impact on other businesses. The paradox of agri-food companies generating substantial profits despite seemingly high product prices is explored in this article, focusing on the role of digital marketing within the agri-food industry. Enhanced digital marketing performance leads to efficient advertising campaigns, through reduced advertising costs and increased resource efficiency. To do so, the authors collected web analytical data from five established agri-food firms with the highest market capitalization. Then, linear regression and correlation analyses were used, followed by the utilization of fuzzy cognitive mapping (FCM) modeling. The analysis revealed that increased traffic through search sources is associated with reduced advertising costs. Additionally, enhanced website engagement contributes to lower advertising expenses, emphasizing the optimization of the user experience. However, it has been discovered that allocating funds for social media advertising eventually results in higher expenses with higher website-abandoning rate. Ultimately, successful management of the balance between product costs and profitability in the agri-food sector lies on the increased use of search sources and greatly reducing the use of social media sources.