First of all, it is important to note that in this dynamic, competitive, changing and always connected digital world, traditional methods such as newspaper advertising, television and billboards are no longer enough to keep brands operating on the market.
Thanks to digital marketing, it is possible to optimize visibility and generate more sales, and although not necessarily the greater the advertising investment, the higher the return obtained, the truth is that without investing at all, surely your business will not be able to take off.
Some of the most relevant reasons why brands and companies should invest in digital marketing:
Digital marketing channels have great segmentation power, which allows you to reach your customers based on specific information such as age, revenue, location, and even personal interests.

Digital marketing provides a set of real-time insights that allow you to have a better understanding of the effectiveness of your marketing actions. In addition, your budget can be optimized by allowing you to adjust your campaign’s investment based on the performance of your results. Digital marketing techniques are much more affordable than traditional marketing techniques. In fact, according to some studies, companies that focus on online marketing tactics or techniques have a lower cost per track.
Digital marketing channels enable two-way communication with leads and customers. Answering questions or comments through social media will bring you closer to your audience and provide an individual or personalized interactive experience.
Digital marketing helps local businesses compete on the same level as large companies. Small brands have the ability to increase their local and global traffic, managing to reach their target audience through different marketing actions.
How much to invest in digital marketing
The ideal amount to invest in digital marketing varies from business to business and depends on many factors. Calculating or estimating the right amount to invest will require an in-depth analysis of the market, leads, marketing actions to be used and the objectives pursued.
You can’t determine an exact amount that’s correct to allocate in your company’s digital marketing, as it will depend on the target segment and goals of your campaign. Part of the budget invested will be used to pay professionals in charge of creating their valuable content, images, ads, etc. While another part will be used to pay for advertising on platforms such as Facebook Ads, Twitter Ads, Google Ads, etc.
An important factor that can help you determine the amount of your marketing investment is lifetime value (LTV). By measuring the net profit you earn during your relationship with the customer, you will deduct its value. It can be calculated by multiplying average sales revenues by the percentage of the gross margin of sale x the rate of withholding tax.
How much to invest in CPC
The amount to be reversed in the cost per click can be determined by the return on the investment you want to get. An income/advertising ratio of 5:1 is considered acceptable to most companies. Which means for every dollar invested in advertising you’ll get $5 in revenue.
It should be noted that most online advertising platforms are auction-based. It’s advertisers who determine what they’re willing to pay. Those who are willing to pay more are the ones who will be able to best position your ads.
To calculate the cost per click, you must multiply the revenue generated by the sale by the website conversion rate by 20%.
Areas to invest in digital marketing
Before you decide which areas to invest in, you need to be very clear about your priorities based on the strategy you want to implement. You should also consider relevant aspects such as who your target audience is, what your needs are, and whether your products or services meet those needs.

All these questions have been discussed, you can decide in which areas you should invest. The most recommended are:

Branding
Keep in mind that your brand, personal or otherwise, is one of your most important assets. The brand is your identity and consists of a number of variables that will make your target audience identify with your project. Therefore, it is very important to invest correctly in the construction of the brand.
Web positioning
SEO is undoubtedly one of the priorities when it comes to making an investment in digital marketing. The main goal is to place it at the top of the search engine results lists. To do this you will need to analyze costs and determine the amount you will need to invest in SEO.

Content marketing
Content Marketing is another key area you need to invest because it will allow you to reach users to respond to their research on a problem or need. In addition, the higher the number of keywords you use in your content, the better and faster they will be placed.

Digital advertising
With the exception of advertising, in online marketing, any action taken has resulted in the medium or long term. That’s why you’ll need to allocate a portion of your digital investment to this area, because if it’s well designed, this type of campaign will help you get very fast results, maximizing your return on investment.
Marketing tools and techniques
Investing in marketing tools and techniques is necessary and also very important as they will allow us to obtain useful data and information to analyze and understand if the Marketing actions carried out in the strategy are effective.

Social media
Social media is an excellent tool to generate close and friendly communication with your target audience. To make an investment in social media advertising platforms it is essential to know what your goals are and to design an effective strategic campaign that allows you to achieve them.

You now have a wide range of information to decide how much to invest in digital marketing and in which areas you should prioritize your budget. In any case, each project is different and the changing dynamics of the digital environment make it necessary to constantly monitor the effectiveness of the actions in order to adjust the investment and maximize the results.