What is the value chain in digital marketing?


Traditionally, value chains are known as the individual steps that go into making a product or service from developing a concept through to actually going to market. Companies can conduct value chain analyses to assess the specific procedures involved in each step of the business.


Why put attention on value chain analysis? This process is intended to increase production efficiency, allowing for the delivery of maximum value – for the least possible cost. Let’s define value chains and see how they function in the realm of digital marketing:

What’s a value chain?

This article on value chains lists critical takeaways for any marketing professional who wants to understand value chain analysis:

  • Value chains are step-by-step models for transforming products or services from ideas to reality.
  • They help increase a business’s efficiency so that it can deliver the most value for the least amount of expenditure.
  • By doing the above, the brand gains a competitive advantage over competitors who aren’t optimising their value chain.

Are their value chains in digital marketing?

Marketing itself is a component of a business value chain but also has its own value chain. Digital marketing involves putting out digital content for online consumption. Like a physical product that requires planning, designing, manufacture, and selling – we can assess and optimise the value chain of an online product  in the same way.

Think about a digital marketing firm that creates social media content for a brand. The value chain starts when the monthly content has been conceptualised and written down. Then comes graphic design work, and after that, a bit of copywriting. The agency should ideally send this to the client for approval, then upload and monitor.

Now, we can map out these steps and find opportunities to improve. For example, the tasks can be outsourced to a graphic designer who also writes social media copy. This will save time, which means that more client work can be done each month. Instead of spending two hours going back and forth with the client over the phone, about what they want, the agency can send the client a form to fill in that gathers all the information required to start the project.

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