Media Investment: One of the Two Big Mistakes Most Companies and Entrepreneurs Make

(By Juan Maqueda and Marcelo Maurizio from Miami) Investing in media is a fundamental part of any marketing strategy worth its salt. It is through the media that companies, brands, personalities, politicians, and others can reach their target audience and promote their products or services. In recent years, we have seen a significant increase in investment in digital media, leading to the claim that 50 or 60% of advertising investment is allocated to online media. However, this assertion is misleading, as not all advertisers invest in digital media to the same extent.

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When discussing advertising investment in digital media, it is usually referring to investment in platforms such as Google or Facebook. These platforms have experienced exponential growth in recent years, leading many companies to focus on online advertising. However, it is important to note that online advertisers are in the millions, whereas those investing in traditional media such as television, radio, outdoor (billboards-OOH), or print media are much fewer in comparison.

Coca-Cola, Pepsi, Apple, Heineken, Adidas, Red Bull, Boss, etc., do not allocate the majority of their total marketing budget to Google or Meta. However, neither do the majority of successful B2B companies. Startups or successful companies invest in sponsoring, local advertising, promotions, OOH (out of home), experiences, brand logistics, team uniforms, merchandising, demonstration and loyalty actions, etc.

It is true that advertising investment in digital media has experienced significant growth in recent years. According to eMarketer, worldwide advertising investment in digital media will exceed $517 billion in 2023, representing a compound annual growth rate of 17.6% since 2018. However, investment in digital media is not uniform across all companies.

Successful large companies, in particular, do not invest 60% of their budgets in digital media. These companies have a wide range of media options available to them, including television, radio, print media, cinema, outdoor media, and events. In fact, investment in digital media can be as low as 10% for some companies that focus on mass consumption products.

Recommendation: Whatever type of tech company you are, it's time to review the entire culture of those who recommend that you go all-digital.

It is important to note that choosing the right media is crucial for a successful marketing strategy. Not all companies need to use the same media to reach their target audience. Companies that focus on older consumers, for example, may benefit more from advertising in traditional media such as television or print media. In the case of younger targets, advertising placed in videos (product placement) in influencers, series, gaming, concerts can be a great differentiator.

Furthermore, it is important to note that investing in media is not the only marketing tool available to companies. Companies can invest in branding, public relations, direct marketing, and other strategies to reach their target audience. Choosing the right strategy will depend on a series of factors, such as budget, target audience, the message they want to convey, and competition in the market. On the other hand, companies that focus on younger consumers may find more benefits in advertising at concerts, shows, bars, and clubs.

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