Destinations establish way of measuring ROI of social media


Destinations are some of the most prolific users of social media in the travel industry – a trend that includes a wide cross section of channels and often backed by hefty levels of marketing spend.

In fact, it is unusual to find a tourism board or Destination Marketing Organisation (DMO) that isn’t regularly throwing out all sorts of content on YouTube, Facebook, Twitter, Instagram et al.

But how does an organisation establish if its efforts with social media are worth all the messages on Twitter, pictures on Instagram, videos on YouTube and interacting on Facebook?

In other words: what’s the return on investment for all that hard work?

Think, a social media agency that works with tourism boards and DMOs around the world, has developed what it claims is a measurement standard for organisations to use when they want to evaluate the success (or not) of a social media campaign.

Organisations that have collaborated on the project include Destination British Columbia, Illinois Office of Tourism, Innovation Norway, Tourism and Events Queensland, VisitEngland and Visit Flanders.

Think says DMOs typically use surveys to try and get some feedback from their respective followers or fans on Twitter and Facebook, but these are limited, for obvious reasons.

Tourism Ireland, it notes, created the Social Ad Value Equivalency (SAVE) metric a few years ago, but this only calculates the earned media value of social media activities, rather then establish the anything beyond the efficiency of a campaign.

So, Think decided to try and generate its own formula, known as Potential On Investment.

How does it do this? In its simplest form, DMOs work from three elements:

  • Total expenditure of a visitor
  • Multiply it by a percentage that represents a social media channel’s influence on purchasing
  • Combine with consumer interactions across a channel

Potential On Investment

Using data on social media impact from a Phocuswright report (Destination Unknown), Think has worked out how influential specific channels can be on purchasing behaviour.

For example, in the US: Facebook (4.51%), YouTube (3.01%), Instagram (2.21%), Twitter (1.52%) and Pinterest (1.35%).

Read full article at: Tnooz