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Navigating increased cost of advertising
Every new year brings new challenges, and effective tourism marketing is becoming trickier—and more expensive. The cost of advertising continues to rise due to general year-over-year (YOY) increases and a post-“shutdown” resurgence in media spending. This evolving landscape means every brand must strategically adapt to stay competitive. Tourism brands must be smart about how advertising money gets spent, especially during busy travel times. In this article, BlackDog Advertising will break down the challenges brands face with the increased cost of advertising and share practical tips to help you thrive.
Why the cost of advertising increases year-over-year
Several factors contribute to the rising cost of advertising, making it essential for tourism brands to adapt their strategies. BlackDog Advertising has identified the key reasons, including:
- Changing market dynamics:
New competitors entering auctions or increasing their media spend can drive up costs. Additionally, OTAs (Online Travel Agencies) often escalate their budgets, intensifying competition. - Large events:
Major events such as the Super Bowl, the Olympics, or cultural phenomena like concerts and tours (e.g., the Eras Tour) can spike demand and increase attraction marketing expenses. - Changing ad landscape:
Platforms like Google and Facebook can adjust their pricing structures, raising the cost of advertising across the board. - Government oversight and regulations:
New rules and compliance standards can alter the digital advertising environment, requiring brands to spend more to stay visible and compliant.
1. Effect on ROI
Maintaining the same tourism marketing budget year-over-year (YOY) may not yield consistent results. Data shows that businesses spending the same amount as the previous year experience diminishing returns. For instance, a recent industry analysis revealed a 15% decline in ROI for those who adhered to static advertising budgets during comparable periods.
2. Strategic adjustments
Brands navigating the rising cost of advertising must adapt their spending and expectations. BlackDog Advertising discovered that a survey of leading travel agencies indicates that 70% have revised their target returns downward, recognizing the need for flexibility in response to the increasing cost of marketing.
3. Seasonal impact
Increases in the cost of marketing are most pronounced during late spring and summer—crucial periods for travel and tourism brands. Statistical trends indicate a direct correlation between the cost of advertising and seasonal demand, with a 25% surge in media expenses reported during peak travel times.
4. Competitive disadvantage
Failing to address the rising cost of marketing can leave brands at a disadvantage. Case studies from the past year show that brands with static budgets experienced a 30% reduction in market share compared to those that adjusted their spending and messaging strategically within tourism marketing.
5. Strategic planning for resilience
Brands incorporating flexibility into their tourism marketing budgets and adjusting based on cost-per-click (CPC) metrics outperform competitors.
Successful tourism marketing campaigns demonstrate a 20% increase in conversion rates for brands reallocating budgets during peak seasons.
Mastering the advertising landscape: a guide for tourism brands
A strategic approach is essential to navigating the ever-changing attraction marketing space. The following insights and actionable strategies from BlackDog Advertising can help every tourism brand effectively weather the increasing cost of advertising:
Digital strategies:
BlackDog Advertising encourages keeping a close eye on your cost-per-click (CPC) and cost-per-conversion (C/CONV) metrics across all campaigns, comparing them to the same period last year. This data-driven approach will provide insights to guide decision-making as brands launching tourism marketing campaigns adjust to an increase in the cost of marketing.
Be prepared to adjust your tourism marketing spend based on the observed cost-per metrics. By staying adaptable, you can optimize your budget in real time, maximizing results and mitigating the rising cost of advertising. Digital platforms offer unique opportunities for dynamic shifts in attraction marketing spend, providing a strategic advantage over static approaches.
Traditional and out-of-home strategies:
Traditional and out-of-home (OOH) buys demand a meticulous approach in attraction marketing. Double-check your contracts to ensure a clear understanding of what you’re getting for your investment. Avoid assumptions based on previous years and verify the terms to align expectations with reality.
Flexibility also extends beyond contracts to the choice of media itself. While traditional channels are vital, consider the increased maneuverability offered by digital platforms. Real-time adjustments in digital placements can be more dynamic, allowing you to maximize your dollars amid the rising cost of marketing and maintain cost-effective attraction marketing.
Be creative and test frequently
Creativity and diversification are crucial elements in adapting to the evolving attraction marketing landscape. Test different tourism marketing placements frequently to identify what resonates most effectively with your audience.
When it comes to attraction marketing, setting up your budget for success demands a proactive approach. Anticipate a 15–20% increase in the cost of advertising to counterbalance the likely rise. By adopting this mindset and remaining adaptable, tourism brands can not only withstand the rising cost of marketing but also thrive.
BlackDog Advertising can help you adapt to increasing advertising expenses
An increase in the cost of marketing isn’t a reason to panic. BlackDog Advertising is here to help tourism brands navigate these changes in attraction marketing, offering practical strategies and insights. Whether it’s managing digital metrics like cost-per-click (CPC) and cost-per-conversion (C/CONV), adjusting budgets in real time, or carefully handling traditional and out-of-home (OOH) strategies, our guidance is designed to give your brand a strategic edge.
BlackDog Advertising’s philosophy is grounded in the belief that the majority of bookings are now won or lost online, positioning us as more than just advisors—we are your partners in navigating the complexities of increasing cost of marketing.