Navigating the Future of Destination Marketing: Insights from Sojern's 2025 Report
February 6, 2025, 5:38 am
In the ever-evolving landscape of travel marketing, destination marketing organizations (DMOs) are like ships navigating through a storm. The winds of change are strong, and the waters are choppy. Sojern's "State of Destination Marketing 2025" report serves as a lighthouse, illuminating the path forward for DMOs. This report, crafted in collaboration with Benchmark Research Partners and supported by major tourism entities, offers a comprehensive look at current trends and challenges in destination marketing.
A significant finding from the report is that 85% of DMOs are either maintaining or increasing their digital advertising budgets. This is a bold move, akin to investing in better sails when the winds are unpredictable. As DMOs allocate more resources, they face the pressing need to demonstrate a return on investment. Advanced tools and data analytics are now essential for engaging travelers throughout the marketing funnel.
The report reveals that DMOs are grappling with complex campaigns and rising expectations. With limited resources, the pressure to deliver measurable results is immense. While 60% of DMOs rely on clicks as their primary metric, over half struggle to show clear ROI. Tracking and attribution remain significant hurdles, making it clear that the journey is fraught with challenges.
Programmatic advertising has emerged as a lifeline for many DMOs. With 83% focusing on this method, it offers precision and cost-effectiveness. Display ads, social media, and search engine marketing dominate the paid media landscape, forming the backbone of DMO strategies. These channels are the sturdy hulls of their marketing vessels, providing stability in turbulent waters.
Artificial intelligence (AI) is another powerful tool reshaping the marketing landscape. Currently, 63% of DMOs use AI for content creation, but only 28% harness its potential for data analysis. This gap represents a vast ocean of opportunity. By addressing resource limitations and training gaps, DMOs can unlock AI's full potential, diving deeper into insights that drive effective decision-making.
The report also highlights a shift in campaign strategies. Traditionally, DMOs favored seasonal campaigns, but now 52% are leaning towards always-on campaigns. This shift is like moving from a seasonal crop to a year-round garden. Always-on campaigns yield better results, with 42% of DMOs reporting improved brand awareness. This continuous engagement allows DMOs to connect with travelers at every stage of their journey.
Targeting specific audiences is becoming more refined. For instance, 66% of DMOs are focusing on outdoor enthusiasts. However, only 15% are utilizing advanced personalization techniques that adapt in real-time across channels. This leaves a vast expanse of untapped potential. Tailoring experiences for travelers can create a more engaging and memorable journey.
Brand-building has emerged as a top priority for DMOs. After years of focusing on immediate bookings post-COVID-19, the industry is stabilizing. DMOs are now taking a long-term strategic approach, balancing stage-specific and full-funnel strategies. This pivot is a crucial step in nurturing brand loyalty and awareness, akin to planting seeds for future growth.
Data is a double-edged sword for DMOs. While it holds immense power, effectively harnessing it is a significant challenge. Over half of DMOs cite data analysis as a major hurdle, and 45% struggle to translate data into actionable strategies. Yet, these challenges present opportunities for DMOs to differentiate themselves. By leveraging data for targeted campaigns, they can hit the mark more consistently.
Co-op marketing is gaining traction, particularly in Europe. This collaborative approach allows DMOs to pool resources with hotels, attractions, and airlines. By working together, they can extend their reach and scale efforts more effectively. It’s a classic case of “two heads are better than one,” amplifying the impact of marketing initiatives.
Social media remains a cornerstone of DMO marketing, with 91% utilizing it. Facebook and Instagram are the top channels, but emerging formats like connected TV (CTV) and short-form video are on the rise. These new avenues offer rich, immersive experiences that resonate deeply with travelers. As DMOs adapt to these trends, they can create visually compelling campaigns that capture attention.
In conclusion, Sojern's "State of Destination Marketing 2025" report paints a vivid picture of the current landscape. DMOs are at a crossroads, facing challenges but also seizing opportunities. By embracing advanced technologies, refining strategies, and fostering collaboration, they can navigate the turbulent waters of destination marketing. The future is bright for those willing to adapt and innovate. The journey ahead may be complex, but with the right tools and insights, DMOs can chart a course toward success.
A significant finding from the report is that 85% of DMOs are either maintaining or increasing their digital advertising budgets. This is a bold move, akin to investing in better sails when the winds are unpredictable. As DMOs allocate more resources, they face the pressing need to demonstrate a return on investment. Advanced tools and data analytics are now essential for engaging travelers throughout the marketing funnel.
The report reveals that DMOs are grappling with complex campaigns and rising expectations. With limited resources, the pressure to deliver measurable results is immense. While 60% of DMOs rely on clicks as their primary metric, over half struggle to show clear ROI. Tracking and attribution remain significant hurdles, making it clear that the journey is fraught with challenges.
Programmatic advertising has emerged as a lifeline for many DMOs. With 83% focusing on this method, it offers precision and cost-effectiveness. Display ads, social media, and search engine marketing dominate the paid media landscape, forming the backbone of DMO strategies. These channels are the sturdy hulls of their marketing vessels, providing stability in turbulent waters.
Artificial intelligence (AI) is another powerful tool reshaping the marketing landscape. Currently, 63% of DMOs use AI for content creation, but only 28% harness its potential for data analysis. This gap represents a vast ocean of opportunity. By addressing resource limitations and training gaps, DMOs can unlock AI's full potential, diving deeper into insights that drive effective decision-making.
The report also highlights a shift in campaign strategies. Traditionally, DMOs favored seasonal campaigns, but now 52% are leaning towards always-on campaigns. This shift is like moving from a seasonal crop to a year-round garden. Always-on campaigns yield better results, with 42% of DMOs reporting improved brand awareness. This continuous engagement allows DMOs to connect with travelers at every stage of their journey.
Targeting specific audiences is becoming more refined. For instance, 66% of DMOs are focusing on outdoor enthusiasts. However, only 15% are utilizing advanced personalization techniques that adapt in real-time across channels. This leaves a vast expanse of untapped potential. Tailoring experiences for travelers can create a more engaging and memorable journey.
Brand-building has emerged as a top priority for DMOs. After years of focusing on immediate bookings post-COVID-19, the industry is stabilizing. DMOs are now taking a long-term strategic approach, balancing stage-specific and full-funnel strategies. This pivot is a crucial step in nurturing brand loyalty and awareness, akin to planting seeds for future growth.
Data is a double-edged sword for DMOs. While it holds immense power, effectively harnessing it is a significant challenge. Over half of DMOs cite data analysis as a major hurdle, and 45% struggle to translate data into actionable strategies. Yet, these challenges present opportunities for DMOs to differentiate themselves. By leveraging data for targeted campaigns, they can hit the mark more consistently.
Co-op marketing is gaining traction, particularly in Europe. This collaborative approach allows DMOs to pool resources with hotels, attractions, and airlines. By working together, they can extend their reach and scale efforts more effectively. It’s a classic case of “two heads are better than one,” amplifying the impact of marketing initiatives.
Social media remains a cornerstone of DMO marketing, with 91% utilizing it. Facebook and Instagram are the top channels, but emerging formats like connected TV (CTV) and short-form video are on the rise. These new avenues offer rich, immersive experiences that resonate deeply with travelers. As DMOs adapt to these trends, they can create visually compelling campaigns that capture attention.
In conclusion, Sojern's "State of Destination Marketing 2025" report paints a vivid picture of the current landscape. DMOs are at a crossroads, facing challenges but also seizing opportunities. By embracing advanced technologies, refining strategies, and fostering collaboration, they can navigate the turbulent waters of destination marketing. The future is bright for those willing to adapt and innovate. The journey ahead may be complex, but with the right tools and insights, DMOs can chart a course toward success.