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

Nikos Kanellos, Panagiotis Karountzos, Nikolaos T. Giannakopoulos (), Marina C. Terzi and Damianos P. Sakas
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Nikos Kanellos: BICTEVAC Laboratory—Business Information and Communication Technologies in Value Chains, Department of Agribusiness and Supply Chain Management, School of Applied Economics and Social Sciences, Agricultural University of Athens, 118 55 Athens, Greece
Panagiotis Karountzos: Department of Regional and Economic Development, School of Applied Economics and Social Sciences, Agricultural University of Athens, 118 55 Athens, Greece
Nikolaos T. Giannakopoulos: BICTEVAC Laboratory—Business Information and Communication Technologies in Value Chains, Department of Agribusiness and Supply Chain Management, School of Applied Economics and Social Sciences, Agricultural University of Athens, 118 55 Athens, Greece
Marina C. Terzi: BICTEVAC Laboratory—Business Information and Communication Technologies in Value Chains, Department of Agribusiness and Supply Chain Management, School of Applied Economics and Social Sciences, Agricultural University of Athens, 118 55 Athens, Greece
Damianos P. Sakas: BICTEVAC Laboratory—Business Information and Communication Technologies in Value Chains, Department of Agribusiness and Supply Chain Management, School of Applied Economics and Social Sciences, Agricultural University of Athens, 118 55 Athens, Greece

Sustainability, 2024, vol. 16, issue 14, 1-25

Abstract: 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.

Keywords: agri-food; digital marketing; profitability; value chains; sufficiency; sustainability; linear regression; FCM; decision support systems (DSSs) (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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