Destination marketing organizations (DMOs) Increase Digital Budgets & Shift to AI-Powered Strategies

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Digital Advertising in Travel: Key Insights for 2025

As destination marketing evolves, digital advertising continues to dominate. A recent industry report reveals that 85% of destination marketing organizations (DMOs) are maintaining or increasing their digital ad budgets in 2025, reflecting the growing reliance on technology-driven marketing.

Key Trends Shaping Destination Marketing in 2025

• More investment in digital advertising – 85% of DMOs are maintaining or expanding their digital budgets.
• AI adoption is rising – 63% of DMOs use AI for content creation, but only 28% leverage it for data analysis.
• Shift from seasonal to always-on campaigns – 52% of DMOs now favor continuous advertising to maintain brand awareness.
• Data remains a challenge – 51% of DMOs struggle with data analysis, and 45% find it difficult to turn insights into action.
• Co-op marketing is growing – European DMOs saw a 16% increase in cooperative marketing efforts year-over-year.
• Emerging ad formats gain traction – Connected TV and short-form video are becoming essential in travel marketing.

The Power of AI in Destination Marketing

AI is rapidly transforming how travel marketers create and distribute content.

• 63% of DMOs now use AI for content creation, streamlining campaigns and improving engagement.
• However, only 28% use AI for data analysis, suggesting an untapped opportunity to optimize marketing strategies.

As AI-powered personalization and automation become more advanced, DMOs can improve targeting and efficiency, ensuring ads reach the right travelers at the right time.

From Seasonal Campaigns to Always-On Marketing

The traditional model of seasonal travel campaigns is fading. Instead, 52% of DMOs have adopted always-on strategies, ensuring consistent brand visibility throughout the year.

• Always-on campaigns help build long-term awareness instead of relying on short-term spikes.
• They allow DMOs to engage travelers at different planning stages, from inspiration to booking.
•  They provide more opportunities for retargeting and remarketing, increasing conversion rates.

However, only 15% of DMOs use advanced personalization to optimize ad performance in real-time, highlighting a gap in maximizing engagement and ROI.

Data Challenges & the Rise of Programmatic Advertising

Despite the importance of data-driven marketing, many DMOs struggle with analytics:

• 51% report difficulty in data analysis, limiting their ability to track performance.
• 45% struggle to translate data into actionable strategies, reducing marketing effectiveness.

However, programmatic advertising is gaining ground, with 83% of DMOs prioritizing automated, data-driven ad placements to improve efficiency and scale their reach.

Emerging Digital Channels in Travel Marketing

While social media remains the leading platform for DMOs, other channels are gaining traction:

• Connected TV (CTV) advertising is growing as travelers shift to streaming content.
• Short-form video ads (e.g., TikTok, Instagram Reels) are becoming a key engagement tool for travel brands.

These new formats allow DMOs to reach travelers in more engaging ways, tapping into video-driven content consumption habits.

Final Thoughts: The Future of Digital Destination Marketing

As digital advertising becomes more sophisticated, DMOs must adapt by:

• Investing in AI-powered personalization to enhance content and data insights.
• Moving away from seasonal advertising to always-on strategies.
• Strengthening data analysis capabilities to improve decision-making.
• Exploring new ad formats like CTV and short-form video to stay ahead of travel marketing trends.

For travel marketers, 2025 presents a pivotal opportunity to rethink digital strategies, improve efficiency, and drive stronger engagement and conversions.

Stay tuned for more exclusive travel marketing insights at FALLZ HOTELS™.

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At FALLZ HOTELS™, we’re dedicated to keeping you informed about the latest developments in the dynamic global hospitality industry. As 2025 unfolds, we’ll continue to bring you expert insights, in-depth analyses, and updates on how hotels are evolving to meet the needs of hoteliers, investors, and stakeholders.

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