Although they still spend a majority of their budgets on traditional marketing vehicles, destination marketing organizations (DMOs) are making "significant" investments in digital marketing, according to new research conducted by Destination Marketing Association International (DMAI).
As part of its "2012 DMO Marketing Activities Study" — which DMAI says is the first-ever benchmark study on DMO marketing practices, primarily in the leisure travel market — DMAI surveyed 240 DMOs from around the country and found that print advertising accounts for 33 percent of the typical DMO's leisure marketing budget, while TV and radio advertising account for 8 percent and 5 percent, respectively. Internet marketing, meanwhile, accounts for 30 percent, according to DMAI, which said DMOs have spent more than $39 million on website and mobile app development in the last three years.
"Until now there hasn't been a definitive, comprehensive study about how destinations are investing their marketing dollars and why," said DMAI President and CEO Michael D. Gehrisch. "It was critical to create a study that would give the industry this vital information to better shape their marketing agendas. On a national level, this is a really great snapshot of what marketing needs are being met or underserved."
In particular, DMOs are using Internet marketing to reach international travelers: According to DMAI, half of responding DMOs market internationally, and those who do invest one-third of their marketing budget outside the United States — mostly in Canada, the United Kingdom and Germany, which were identified as the most popular countries where DMOs are marketing.
"In order to reach these and other global consumers, more than ever DMOs are integrating their online activities, especially social media, into their overall marketing efforts," DMAI said in a press release. "Banner ads and search engine marketing dominate the online spending landscape, and almost all responding DMOs said they were present on Facebook, Twitter and YouTube."
Further illustrating DMOs' increased spending on Internet marketing is the fact that more than three-quarters use a Content Management System (CMS) and almost half have at least one staff person devoted to website content management. When it comes to mobile, meanwhile, half of DMOs have or plan to have a destination app by the end of 2012, and almost all have or plan to have a mobile version of their website.
"This study comes at a critical crossroads in our industry," Gehrisch said. "With the recent launch of Brand USA, and the creation of the first national travel and tourism strategy for the United States, we're poised for enormous growth. However, the industry has been hindered by a lack of comprehensive, centralized information on marketing practices. This study gives all DMOs vital information in terms of investments and technological trends. This information will help us to evolve and more effectively compete in the global marketplace."