Measuring the Value of Social Media Marketing from a Destination Marketing Organization Perspective

Kumpu, J., Pesonen, J., & Heinonen, J.

Synopsis: Even though social media is one of the most significant marketing tools in tourism, the measurement of its value is still developing. Assessing return-on-investment on social media marketing is challenging. Thus, destination marketing organizations (DMOs) are nonetheless pouring money and time in social media marketing without being aware of the results. In this study, we seek to understand what DMOs are measuring in social media marketing that they do and why. The qualitative data was gathered via semi-structured interviews among eight representatives of Finnish DMOs. The interview responses were analyzed with a theory-guided content analysis method. The results demonstrate that even though the goals for social media presence are clear, the actions taken are more of an experimental nature and undocumented. Only the basic metrics that the platforms automatically provide are used and the evaluation of financial value is difficult. However, social media marketing creates value beyond financial value. Non-measurable data like customer emotions and opinions in various channels are considered as important especially to understand customer engagement. Even though the evaluation of financial value is challenging the total value of social media marketing is considered extremely valuable. Social media marketing is utilized in decision-making by top management especially with the help of measurable data. In addition to this, non-measurable insights are utilized in product development and marketing planning.