The future of destination marketing is poised for significant evolution, with advancements in Artificial Intelligence (AI) and digital marketing tools becoming increasingly important for DMOs in 2024.
So said Stewart Smith, MD of MEA at Sojern, a leading travel marketing platform designed to boost growth and profitability for the travel industry.
Sojern recently conducted a ‘State of Destination Marketing 2024’ study that gathered critical insights into the strategic decision-making of destination marketing teams.
The study’s findings were obtained from April to September 2023, through a globally distributed survey, expert views and case studies. The study was conducted with the insights of destination marketers from more than 300 DMOs, government departments, and chambers of commerce worldwide.
Key findings
DMOs increasingly focus on internal talent development rather than outsourcing their digital marketing. The data shows that only 9% completely rely on external agencies, while a substantial 70% maintain an in-house marketing team or department.
“This shift towards internal resources is seen as a way to ensure long-term, sustainable marketing practices,” said Smith.
Additionally, social media has become a key tool for DMOs in reaching more customers cost-effectively, with 91% of respondents possessing in-house social media expertise.
However, capabilities in Customer Relationship Management and User Experience Design are less common, viewed more as luxuries, with only 18% and 27% of teams respectively equipped in these areas.
Regarding social media platforms, Instagram and Facebook are popular, while TikTok, despite its growing global presence, is considered the most important channel by only 5% of DMOs.
The negative impact of COVID-19 seems to be diminishing, with 66% of respondents indicating that the pandemic no longer significantly affects their strategic planning.
The role of AI
AI's role in revolutionising the landscape of content creation, predictive analysis, and personalised marketing for destinations is profound and undeniable, according to Smith.
“The accessibility of AI technology is a key factor in its widespread adoption. It's becoming increasingly user-friendly, allowing almost anyone to leverage its capabilities. What's more, AI is rapidly evolving, particularly in its ability to tailor content and experiences to specific preferences or destinations,” said Smith
He added that a standout in AI advancements was Generative AI.
“This technology, capable of creating content that mimics human output, is seen as a critical tool in content creation. A significant 83% of DMOs surveyed anticipate that Generative AI will have at least some impact on content creation going forward.”
Smith further noted that, beyond content creation, AI's potential in predictive analytics and forecasting was also being recognised by DMOs.
“Around 40% believe in its substantial capability for predictive analysis and consumer behaviour forecasting, 38% in its utility for data analysis and interpretation, and 37% see its value in personalising marketing content.”
Smith did, however, caution that despite these advancements, there remained scepticism about AI functioning as a complete digital solution.
“The consensus is that human oversight is still essential for guiding strategy and ensuring the final output quality.”
Critical role of social media and SEM
Social media marketing and search engine marketing (SEM) played pivotal roles in destination marketing, complemented by the emerging influence of CTV, which in this context stood for ‘Connected TV’, said Smith.
“In our survey, an overwhelming 96% of respondents view social media as highly or moderately important, with SEM closely following at 94%. These channels provide extensive, cost-efficient avenues for reaching target audiences. DMOs particularly favour platforms like Facebook and Instagram for their robust advertising tools, which allow precise targeting,” he added.
Search engines, notably Google, offer another powerful channel, with the right keywords potentially driving significant traffic through paid (PPC) and organic (SEO) methods.
“Regarding CTV, despite 48% of respondents rating its importance as low, it's increasingly recognised as a significant player in the marketing mix. CTV enables advertisers to connect with users across various streaming-capable devices, including smart TVs, laptops, and tablets,” said Smith.
He added that, despite the obvious degree of trepidation among DMOs before jumping into new channels and formats – with more than half of respondents considering CTV of mid to high importance – Sojern foresaw that, as streaming continued to grow, DMOs would actively explore the possibilities the technology offered.
