Risks of Investment in Digital Marketing: the Optimum or Minimum? -
Year: 2020
Type: article
Abstract: Global changes in the world market and intensive trends in the development of digital
technologies make it necessary to strengthen control over investment processes by optimizing these costs and
improving existing mechanisms for promoting goods and services on the market. Modern business realities
tighten the conditions for the functioning of companies in the world market, which is accompanied by the
conceptual need to revise the processes of investing in digital marketing and determine a development strategy
taking into account marketing innovations. To determine the main trends in the activities of leading world
brands Walmar and Procter & Gamble for the period 2008–2018. retrospective analysis and correlationregression
analysis tools were replaced. It is taught that in terms of investments in digital marketing and brand
promotion, there is a strong correlation between the target indicators of companies, namely: the average annual
turnover of company sales and the cost of advertising and brand promotion.
This approach is formulated and conceptualized on the basis of the analysis of the interdependence of the main
results of companies' activities on the volume of advertising expenses and the calculation of correlation levels,
which allowed us to determine the direction and strength of the relationship between average annual sales and
advertising expenses of these corporations. as well as other indicators using evidence. The obtained results and
empirical data made it possible to form the basis of theoretical and methodological aspects and practical
recommendations that may be acceptable in the ratio of relevant effective indicators for use in other companies
and organizations.
Source: Journal of Critical Reviews
Language: English
Subfield: Marketing
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W3202474752