Digital Advertising, Digital Investment

Digital advertising vs. digital investment: Following a pandemic that has accentuated the digital behavior of millions of consumers, it is now easier for brands to reach their target users and address all those uncertainties.

Digital Advertising

The pandemic, external conflicts, disruptions in the supply chain, inflation, and the overall context have led consumers to reconsider their priorities and form opinions on how brands react to these circumstances. It all starts with the consumer and the constant presence in the digital channels, specifically social media.

Both major brands and small businesses, global conglomerates and micro-entrepreneurs alike recognize that their consumers reside in these channels and have allocated significant advertising investments to them.

Según la consultora PwC, el valor de la publicidad en internet en México ronda los 3.913 millones de dólares, una cifra que se prevé aumentará a un ritmo anual del 5%, según el estudio «Global Entertainment & Media Outlook 2022-2026, Capítulo México».

On the other hand, eMarketer, a market research company, estimates that by 2025, 7 out of every 10 dollars invested by Mexican brands in advertising will be allocated to the digital sphere.

Digital advertising has become a fundamental tool for brands seeking to reach their target audience in the digital environment. The ability to segment, measure return on investment, and create personalized messages are some of the advantages offered by this form of advertising.

However, it is important to highlight that reaching the next customer goes beyond merely being present in digital channels. Brands must develop solid, creative strategies focused on creating value for the consumer.

Generating relevant content, using data analysis tools, and personalizing the customer experience are key aspects to stand out in the digital world and capture the attention of the target audience.

A Different Consumer

With a focus on these platforms, retailers are no longer wondering where their consumer is, but rather how to reach them considering the great diversity of social networks, formats, message types, and the new demands from internet users, such as privacy preservation and the increasing rejection of invasive advertising.

Otro de los grandes desafíos a los que se enfrentan las marcas es contar con un amplio abanico de posibilidades en el mundo digital, pero estar desconectados del cliente. «Uno de los grandes errores en las inversiones en medios digitales es no comprender a su propio usuario. Se trata de analizar lo que los consumidores están diciendo, cuáles son sus preocupaciones y en qué invierten su dinero. A partir de esta información, las marcas pueden asignar sus inversiones a las plataformas adecuadas y saber cuánto tiempo y dinero dedicarán a estos canales».

A study by eMarketer highlights that nearly 50% of marketing teams in retailers have modified their digital investment decisions in recent years due to changes in audience behavior. Additionally, the same study indicates that 60% of total advertising investment in Mexico is allocated to digital channels.

Consumers have become more demanding when it comes to digital advertising. Retailers must find the appropriate way to reach them in an increasingly diverse environment while respecting their privacy. Understanding the consumer and their needs, as well as investing in the right platforms, are essential elements for achieving success in digital advertising. Additionally, creativity and adaptation to changes in consumer behavior are crucial for standing out in a competitive market.

In conclusion, digital advertising is constantly evolving, and brands must be prepared to meet user demands and make the most of the opportunities provided by this ever-changing environment.

Proper Segmentation for Digital Advertising

One of the most interesting topics for companies dedicated to digital marketing is achieving proper segmentation. Some years ago, brands relied on advertising targeted at mass audiences. However, in today's digital environment, it is possible to reach more specific audiences, even if they are smaller, ultimately achieving more effective results

«Contar con ‘subsegmentos’ ayuda a las marcas a llevar a cabo una comunicación más especializada y dirigida. De esta manera, se evita que el mensaje se sienta invasivo, como ocurre normalmente con un mensaje general que llega a todo el mundo y que a menudo no tiene nada que ver con el receptor de esa publicidad» .

In the particular case of the retail sector, user reviews on blogs, social media, and websites have become a fundamental part of brand advertising. Therefore, it is crucial for digital marketing strategies to provide customer service follow-up and offer a complete experience on digital platforms. This is where the brand teeters between being a good or bad recommender.

Ultimately, both brands and consumers share the same goal: to provide and obtain a product that satisfies a need. Behind this simple statement lies a dance of billions of dollars in investment.

Digital advertising has become an extremely competitive field in which companies aim to effectively reach their target audience and generate positive results for their businesses. Proper segmentation has become crucial in achieving this, allowing messages to be directed more precisely and personalized, thereby avoiding the feeling of invasion in users.

Furthermore, monitoring consumer opinions and interaction on digital platforms has become essential for digital marketing strategies. User reviews and recommendations are key to building a strong reputation and generating trust in the brand.

Likewise, the evolution of advertising towards a contextual approach based on user preferences and behavior has proven to be effective. By using contextual signals, brands can offer personalized recommendations, increasing message relevance and improving the user experience.

In conclusion, proper segmentation and personalization are crucial elements in digital advertising. Brands must adapt to new trends and utilize available tools to understand and connect with their target audience. Investment in digital advertising continues to grow, and companies must be willing to invest in effective and creative strategies to stand out in this competitive environment. The dance of billions of dollars in investment continues, and the brands that understand and meet the needs of their consumers will achieve success in the world of digital advertising.

References

Avacum - Online Corporate Finance Advisory