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Destinations Shift Marketing Dollars Online, Expedia Reports


July 28, 2010

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Although travel is an offline activity, destination marketing organizations are increasingly investing in online advertising, according to a new study by Expedia Media, the advertising sales division of Expedia Inc., which found that online media now accounts for more than 50 percent of some DMOs' total advertising budget.

According to the study, DMOs are shifting advertising dollars online due largely to budget cuts and the demand from governing bodies for measurable metrics. They also recognize, however, that more travelers are using their computers and mobile devices to plan trips.

As evidence of that trend — which encompasses social media marketing — Expedia cited complementary research from other organizations, including PhoCusWright, which reported in 2009 that 56 percent of U.S. travelers select their vacation destinations online, and Destination Analysts, which reported this year that 43.5 percent of consumers had used social media to plan travel in the last 12 months.

"DMOs recognize the need to capitalize on this trend," Expedia said in a statement, "and according to Expedia's study, many DMOs said they want to incorporate social media into the marketing mix, but have not yet determined the best way to leverage the channel in their marketing plans."
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