Do you think that a lot of money is being spent in events and that it would be a better use those funds in digital marketing?

That's a good question you have posted Thomas! Spending on events (organisation, sponsorships, setup and the big day/night) and spending in marketing are two separate things.
Compromising one for the other will not be an ideal solution.
If you attract great audience with your perfect digital marketing skills and if the event is not up to audience's expectations, then you lose the trust component and people will be hesitant to attend your future events.
However, if you meant to ask the same question by replacing 'events' with 'traditional marketing' that would be another interesting debate I would love to answer.

Both ways needs to be considered .

I believe in the beginning when we are not too famous we need to start by arranging the events.

Later when we have a good position then we can go for the digital marketing as this the very convenient way of delivering a message to all in a short span of time 

Digital marketing has always been a complement to event marketing. Digital campaigns add a sixth sense to your event marketing, the sense of interactivity in an intangible environment. For example, it helps reach out to event attendees who are far away.

no, both ways are important. 

Company participation and sponsoring of event helps firms to keep brand live and fresh in market and ultimately we are supporting a society with cause with fund and colors. All about digital marketing and Events they are two seperate branches of same tree.