Why Aren't Agribusinesses Using Digital Marketing?

Why Aren’t Agribusinesses Using Digital Marketing?

October 25, 2023

Do Traditions Just Simply Die Slower in Ag?

Many think that traditions die a bit slower within agriculture. This could be true as many farms and agricultural businesses are run by the older generation, and slower to be passed on to the next generation. The average age of farm producers in the US is 57.5 years old. Now, this doesn’t mean that agriculture machinery manufacturing and other ag equipment companies are owned by people in their 50s or older, but I do see the argument.

There is also the education argument here. Many multi-generational farm equipment managers and farmers themselves have learned the business from their parents, and their parents from the generation before. With this in mind, the new generation will likely continue operations as it was taught to them, the traditional way. If you want more business, “put an ad in Farmer’s Weekly” or “call a few of your contacts from the trade show the other month”. Those are some of the answers that were given when talking with salespeople in the ag space. Sticking to traditions is very important for many things, but in the world of marketing and sales, the reward usually goes to the innovator.

“We Have Always Marketed This Way and it Works Fine”

One of the significant hurdles faced by agribusinesses is the perception that their traditional marketing methods are sufficient. If they have been successfully using conventional approaches like word-of-mouth, local markets, and traditional advertising, why bother with digital strategies? The lack of awareness regarding the potential of digital marketing can keep businesses in the dark about the vast opportunities it offers in terms of reaching a wider audience and engaging with customers on a deeper level.

The “if it ain’t broke, don’t fix” saying rings very true in the ag space. Traditional marketing also provides a sense of stability and security. There is not any risk of investing $1,000 in a magazine ad because that’s what has been done for years. There might be limited risk, but is there an opportunity cost?

The Lack of Digital/Technical Skill Argument in Agriculture

Doing something you aren’t knowledgeable about can be intimidating. Is that what is holding agribusinesses back from digital marketing? This is a reason given by some, but there could be an argument made that no industry has digital marketing savviness outside of the marketing industry itself. Yes, there is a technical component to digital marketing, but with the resources available for all industries such as Youtube, online courses, or even simply hiring a digital marketing partner, why does it seem that only the ag industry is falling behind?

Plumbers, HVAC techs, roofers, fence installers, lawyers, medical practitioners. The aforementioned list of professions all (likely) lack digital marketing acumen, and yet their industries are some of the most competitive on the Google search results page. Plumbers spend thousands of dollars per month, even on a very local level to rank well on Google. Why? Because ranking ahead of their competitors could mean getting a call for a water heater install and the competitor lacking business for the week. Aren’t ag businesses in the same position? Wanting to outperform their competition and be king of the hill (or in this case, the Google search results page).

Is Digital Marketing for Agriculture Too Expensive?

The cost of digital marketing is relative, just like any other cost associated with running a business. Yes, running a digital marketing campaign will likely cost more than putting an ad in Farming Monthly, however, has anyone ever checked on what that ad from Farming Monthly produces in terms of revenue?

Again, the tradition of running an ad in a magazine before harvest every year is just the way it has always been done. No rhyme or reason necessary. However, with an ad running on Google, the ROI will be very clear. $1,000 per month in, and 8 phone calls (leads) out. Those 8 phone calls, if you are an agricultural equipment manufacturer, could easily be worth over $100,000 each. But, no one needs to guess. The number wouldn’t lie and the data would be tracked. Digital marketing might be expensive, but missing out on the millions of dollars of revenue online is even more expensive.

Long Sales Cycles in Ag Could Prevent Some From Investing More in Marketing

Agricultural products often involve long sales cycles. The decision-making process for farmers and other stakeholders can be lengthy and meticulous, involving careful consideration and evaluation. This extended sales cycle can make businesses hesitant to invest heavily in marketing, as the results might not be immediately apparent.

There is no doubt that marketing in agriculture is a tricky business. There are weather concerns, timing of harvests, seasonality, supply concerns, and other factors that make timing very difficult to predict in most cases. The advantage agribusinesses would have with digital marketing, especially SEO (search engine optimization), is the slow and steady nature of growth. SEO has a compounding effect, so once started, there are not instant results, but rather gradual results as the year progresses.

Some Agricultural Products and Services are Very Niche

Agricultural products and services are often highly specialized and niche-specific. While this specialization is a strength, it can also pose challenges in the digital marketing arena. Targeting a niche market requires tailored strategies and a deep understanding of the audience. Agribusinesses may find it daunting to create digital marketing campaigns that resonate effectively with such specialized audiences.

That said, there is also a major benefit often overlooked by these companies: lack of online competition. Think about it, a business that sells lawn mowers is going to be competing with hundreds if not thousands of large businesses online also selling lawn mowers. Moreover, a business selling stainless steel pig feeders is not going to have many competitors on page number one of Google. In the hog feeder example, there would be a myriad of keywords available to target that business’s target market:

Hog feeding equipment
Hog feeders
Stainless steel hog feeders
Swine feeding equipment
Swine feeders
Pig feeders
etc.

And yes, there are companies that specialize in pig feeders… but not many!

The Agriculture Industry Just Doesn’t Know Enough About Digital Marketing

After looking at all of the above arguments to not invest in digital marketing as an agribusiness, there is only one conclusion that makes sense. The agroindustry just doesn’t have enough information on the topic of digital marketing. There are specialized firms catering to lawyers, plumbers, and roofers, but not agribusinesses. The value of digital marketing is the same (if not better) for the ag industry, but there isn’t the same level of education.

Finding a Digital Marketing Partner in the Agriculture Industry is Paramount

The key to any business having success is having the right team and partners around them. Honestly, one of the reasons the ag industry has been able to succeed without an online presence is because of their relationships and partnerships. Loading Leads Marketing was founded to help small businesses in agriculture have a voice online. Home Depot and Amazon should not be the top search results for fertilizing equipment, and Google wants to show the most relevant content, it just doesn’t exist on your website (yet)! So let’s give it to them, and start ranking at the top of the search results and driving more leads your way. Contact us for a free consultation conversation.