Image created using generative AI
Navigating increased costs of advertising in 2024
Every new year brings new challenges, and in 2024, effective tourism marketing may get trickier — and more expensive. The cost of advertising is on the rise due to general year-over-year (YOY) increases, a post-“shutdown” resurgence in media spending, and a looming election year. This landscape will leave every brand scrambling for attention even if politics generally aren’t a concern. Moreover, when we approach 2024’s busy travel times from spring to summer, tourism brands need to be smart about how advertising money gets spent. In this article, BlackDog Advertising will break down the challenges brands will face with an increased cost of marketing and share practical tips to help you thrive in 2024.
Why tourism brands must rethink their 2024 advertising approach
As tourism brands get ready for the challenges of 2024, it’s clear that sticking to the same old advertising plans might not be as effective. Here are five reasons BlackDog Advertising believes tourism brands need to adjust their attraction marketing approach in the coming year.
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 are experiencing diminishing returns — especially with an increase cost of marketing. 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
Tourism brands navigating the increased cost of advertising will likely need to make strategic adjustments to either their target return or overall spending for the year. For example, a survey of leading travel agencies indicates that 70% have revised their target returns downward, recognizing the need for adaptability in response to the increased advertising costs of 2024.
3. Seasonal impact
The impact of the increased cost of marketing will be most pronounced starting in late spring, escalating throughout the summer months — crucial periods for travel and tourism brands. Statistical trends indicate a direct correlation between advertising costs and seasonal demand, with a 25% surge in media expenses reported by tourism brands during peak travel times compared to off-peak periods.
4. Competitive disadvantage
As the cost of advertising rises and competition for consumer attention intensifies, tourism brands that fail to proactively address the advertising challenges of 2024 risk falling behind. Case studies from the previous year underscore this risk, with brands maintaining a static advertising budget experiencing a 30% reduction in market share compared to those who strategically adjusted their spending and messaging in response to changing market dynamics.
5. Strategic planning for resilience
To thrive in the face of increasing tourism marketing costs, brands must engage in strategic planning. Historical data from comparable periods demonstrates that brands incorporating flexibility into their advertising budgets and adjusting spending in response to cost-per-click (CPC) metrics outperform competitors. A study of successful campaigns reveals a 20% increase in conversion rates for brands that strategically reallocated their budgets based on evolving cost dynamics during peak travel seasons.
Mastering the tourism marketing landscape: A guide for brands in 2024
A strategic approach is essential to navigating the always fluid attraction marketing space. The following insights and actionable strategies from BlackDog Advertising can help every tourism brand effectively weather 2024’s challenges:
Digital strategies:
Keep 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 adjust to an increase in the cost of marketing.
Flexibility is key in the digital space. 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 rising costs. 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. 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 rising cost of advertising 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 marketing placements frequently to identify what resonates most effectively with your audience. Setting up your budget for success demands a proactive approach. Anticipate a 15-20% increase in cost of advertising to counterbalance the likely rise. By adopting this mindset and remaining adaptable, tourism brands can not only weather the challenges of 2024 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. Especially because BlackDog Advertising is here to help tourism brands navigate these changes, 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 2024.
