San Francisco-based Sojern has released its 2025 State of Destination Marketing report, offering insights into how destination marketing organizations (DMOs) adapt to the changing digital advertising landscape. The report, compiled in partnership with Benchmark Research Partners and supported by industry leaders such as Brand USA and Destination Canada, reflects emerging trends in AI integration, traveler engagement, and data-driven strategies. The study found that 85% of DMOs have maintained or increased their digital advertising budgets compared to last year.
Programmatic advertising remains a key tool, with 83% of DMOs using it for its precision and cost-effectiveness. Display ads (97%), social media advertising (90%), and search engine marketing (80%) are the dominant channels in paid media strategies. However, DMOs face challenges in demonstrating return on investment (ROI) and managing complex multichannel campaigns.
54% struggle with ROI tracking and 37% find tracking and attribution to be key hurdles. 60% still rely on clicks as their primary metric, highlighting the need for better performance assessment methods. Artificial intelligence (AI) is emerging as a game-changer, with 63% of DMOs using it for content creation.
Yet, only 28% use AI for data analysis, revealing a significant opportunity to harness AI for deeper insights and more intelligent decision-making. The report also indicates a shift towards “always-on” marketing strategies, with 52% of DMOs favoring them over seasonal campaigns (40%).
Emerging trends in destination marketing
This approach leads to higher brand awareness (42%) and increased traveler engagement across all booking phases. DMOs are becoming more sophisticated in targeting niche segments, with 66% focusing heavily on outdoor enthusiasts. However, only 15% use advanced personalization techniques, presenting an opportunity to refine strategies using big data and AI-driven insights.
Data analysis remains a challenge, with 51% of DMOs struggling to utilize data effectively and 45% finding it difficult to convert insights into action. Improving data analysis techniques can lead to more impactful and data-driven campaigns. Co-op marketing is on the rise, with participation increasing by 16% year-over-year in Europe.
Collaboration among destinations, airlines, hotels, and attractions allows for pooling resources and extending campaign reach. Social media continues to dominate, with 91% of DMOs using it for marketing and 99% ranking Facebook and Instagram among their top five channels. Connected TV (CTV) and short-form video are gaining traction, offering the potential for immersive, visually rich campaigns.
The findings suggest that destination marketing is entering a more data-driven, AI-powered, and collaborative era. DMOs that embrace digital innovation, AI-powered insights, and collaborative marketing strategies will be best positioned to thrive in an increasingly competitive tourism landscape.
