Effect of Digital Advertising Strategy on the Organizational Performance of Soft Beverage Manufacturing Companies in Nairobi County, Kenya

Lydiah Muthoni Ndungu, James Nzili Mbebe, Simon Muriithi

Abstract


This study examined the effect of digital advertising strategy on the organizational performance of soft beverage manufacturing companies in Nairobi County. The purpose was to determine how digital advertising influences key performance indicators such as sales growth, market share, and customer engagement. A descriptive research design was adopted, targeting 127 employees from 10 soft beverage firms, with a sample of 97 respondents determined using Taro Yamane’s formula at a 5% margin of error. Data was collected through structured questionnaires with five-point Likert scale items and analyzed using SPSS, employing descriptive statistics and regression analysis. The findings revealed a strong positive relationship between digital advertising strategy and organizational performance, with a Pearson correlation coefficient of 0.718 and an R² of 0.515, indicating that 51.5% of performance variation is explained by digital advertising. Regression analysis showed a significant effect (? = 0.815, p < 0.001), while ANOVA confirmed the model’s robustness (F = 92.547, p < 0.001). The study concluded that digital advertising plays a critical role in enhancing company performance by driving customer engagement, increasing sales, and improving market competitiveness. It is recommended that firms invest more in digital platforms, adopt personalized and data-driven campaigns, and leverage AI and analytics for targeted marketing. Companies should also monitor cost-per-click strategies, integrate interactive content, and continuously evaluate digital campaigns to align with consumer trends. Overall, the study underscores the strategic importance of digital advertising in sustaining growth and competitiveness in Nairobi’s soft beverage manufacturing sector.

Keywords: Digital Advertising, Performance, Soft Beverage, Manufacturing companies, Nairobi County


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