Why Paid Search for DMOs Is Broken—And How We Can Fix It

Paid search (often referred to as "search engine marketing" or "sem") has long been a cornerstone of digital marketing strategies across various industries. From retail to finance, businesses have honed their SEM tactics to align with specific, measurable goals—whether it's driving online purchases, lead generation, or app downloads. However, in the Travel & Tourism space, the approach to SEM often falls short. While other industries focus on conversion-centric strategies, DMOs have traditionally centered their efforts on clicks and traffic. But as the landscape of digital marketing evolves, it’s clear that this approach is no longer sufficient.

The Current State of DMO Paid Search: Why It’s Broken

In most industries, SEM campaigns are designed with clear, tangible goals in mind. Conversion tracking allows businesses to optimize their campaigns effectively, ensuring that every dollar spent contributes to the bottom line. DMOs, on the other hand, face a unique challenge: the ultimate "conversion"—a visit to the destination—is difficult to track directly through online interactions. Even destinations with booking portals see a relatively small volume of purchases. As a result, many DMOs default to metrics like clicks or website visits as proxies for success. However, these metrics are inherently flawed for several reasons:

1. Clicks Don’t Equal Conversions: A high click-through rate (CTR) can be misleading. It might indicate that your ads are engaging, but it doesn’t necessarily mean that those clicks are translating into visits or even genuine interest. This focus on clicks can lead to inflated metrics that don’t reflect real-world outcomes. Use CTR as a guide, while you work on improving your measurable on-website outcomes.

2. Low CPC isn't the Goal: A low cost per click (CPC) can mean other problems upstream. Broad audiences, non-specific keywords, and lack of targeting can all contribute to a reduction in CPCs, but the key is finding the sweet spot for your destination amidst your competitive set. A small town or rural region should expect to see different average CPCs than a destination in a major urban center. Lastly, consider setting higher maximum CPCs for high-intent or lower-funnel campaigns. Our general rule of thumb is higher funnel advertising should have a lower max CPC and a lower average CPC than your lower funnel efforts. It's not unusual to see averages around $0.40 to $0.70 for national awareness campaigns, but $1.25 or more for conversion-focused.

3. Lack of Precision: Without the ability to track direct conversions, DMOs often cast a wide net, targeting a broad audience in the hopes of reaching potential visitors. This generalist approach can dilute campaign effectiveness, leading to wasted ad spend on audiences with low travel intent. Begin by adjusting your campaign structure to focus on funnel positions: awareness, inspiration, consideration, etc.

4. Misaligned KPIs: Traditional SEM metrics like CTR, cost-per-click (CPC), and even impressions are valuable, but they don’t fully capture the nuances of travel-related decision-making. For DMOs, these KPIs are often insufficient to justify continued investment or to provide insights into campaign performance.

How Can DMOs Evolve? The Search Party Solution

To truly evolve in the DMO space, it’s essential to shift from a click-centric approach to a more sophisticated strategy that recognizes and tracks "soft conversions." These are actions that, while not as definitive as a purchase, indicate a strong intent to travel. Here’s how DMOs can start to make this shift:

1. Define Soft Conversions: The first step is to identify the behaviors that signal travel intent. These could include interactions like signing up for a destination’s newsletter, engaging with itinerary planning tools, or downloading a travel guide. Each of these actions suggests that the user is in the consideration phase of the travel funnel and could be a future visitor.

2. Track and Optimize for Soft Conversions: Once these soft conversions are defined, DMOs need to adjust their SEM strategies to track these actions. This might involve setting up event tracking in Google Analytics (GA4 now calls these "Key Events"), creating custom goals, or using UTM parameters to measure specific interactions. By optimizing campaigns around these soft conversions, DMOs can ensure their SEM efforts are driving meaningful engagement rather than just traffic.

3. Use Audience Targeting to Refine Reach: Leveraging audience segmentation tools, DMOs can target ads more precisely, focusing on users who are more likely to convert into visitors. This can include retargeting users who have engaged with soft conversion points or using lookalike audiences to find new potential visitors who exhibit similar behaviors. We like to align our SEM campaign building with consideration for where someone is geographically, as well as where they might be in the "funnel". That is, are they just now being made aware of the destination? Are they already considering a visit but need a little inspiration? Or, are they ready to make the leap and your advertising will drive them toward their final decision about where they will stay?

4. Implement Conversion Rate Optimization (CRO) Tactics: Once all of these other strategies have been employed, DMOs may also consider employing CRO techniques typically used in e-commerce. This might include A/B testing landing pages, refining ad copy, and adjusting call-to-action buttons to increase the likelihood of users completing your defined soft conversions.

Conclusion: The Path Forward for DMOs

The future of paid search for DMOs lies in moving beyond clicks and focusing on intent. If you're an organization that measures your success by how many website sessions you generate, you'll be in for a little bit of a shock when you see a reduction in these numbers in favor of fewer – but more engaged – site visitors. By redefining what a conversion looks like in the travel space and implementing strategies to track and optimize for these soft conversions, DMOs can transform their SEM efforts from generic traffic drivers to powerful tools that nurture potential visitors through the travel decision-making process. At Search Party, we believe that by embracing these changes, DMOs can unlock the full potential of paid search, ensuring that every campaign not only drives traffic but also meaningfully contributes to their ultimate goal: bringing more visitors to their destinations.

Ready to elevate your paid search strategy?

If you’re a DMO or CVB looking to move beyond clicks and develop a more effective SEM strategy focused on soft conversions, we’re here to help. Reach out to Search Party today to see how our tailored approach can improve your outcomes and bring more visitors to your destination. Let's work together to make your paid search campaigns not just efficient but truly impactful. I'm just an email away! Reach out to hello@asearchparty.com or just use the form on our contact page.