The purpose of this thesis was to explore, how the Finnish DMOs plan social media marketing and utilize marketing measurement and financial value in their decision-making, the research questions being how social media marketing is planned and measured in DMOs and why, how the financial value of social media marketing is considered and measured, and finally, how social media marketing is utilized in decision-making of the DMOs. Next, the most crucial findings regarding the research questions and theoretical framework will be compared and concluded as appeared in the analysis.
According to Peters et al. (2013), social media needs to be managed in the same way as all other media, which have goals in the organization. As the nature of social media marketing implies, the major goals for the DMOs of this study are versatile, yet mostly relating to branding the destination as well as promoting the products and services in the destination. Building long-term relationships with the customers also stood out as important goals in social media marketing, thus contributing to emotional brand elements and brand value presented in the theoretical framework (Hosany et al. 2007; Huertas & Mariné-Roig 2015; 2016b).
Previously, social media was not recognized as an important tool in marketing strategies, that is why it has been underfunded or even neglected(Hays et al. 2013.) Therefore, documenting the goals for social media marketing by including it in the strategy is important. As to documenting the goals, the findings are somewhat in line with Munar (2012) and Hays et al.
(2013) concerning formal but flexible strategy for social media marketing. The findings reveal that documenting the goals for social media marketing are more likely to be based on commonly agreed rules, rather than officially documenting them. However, there are differences in documenting the goals among the DMOs. According to the findings, the documentation of the goals for social media marketing depend on whether the actor in charge for planning social media marketing is the DMO management or a city or municipality. Thus, the relevancy of the goals is affected by who makes the plans for social media marketing in DMOs. Social media is also regarded as one tool among others in digital marketing (Järvinen 2016). The same applies to the views of the DMOs of this study, and therefore social media marketing was considered a part of some other, such as digital marketing strategy. In the
interviews, reasons for the commonly agreed rules or lacking the strategy documented was the fast change pace of digital marketing or the lack of time outside everyday work.
Another theme in this study was the measurement of social media marketing. According to the findings, the so-called “basic metrics” are used for measuring the results of social media marketing, as they can be easily acquired and implemented inside social media channels. This supports the finding made in the study by Morgan et al. (2012), which suggests that tools for social media measurement tend to be chosen according to the easiness of adoption and use.
This finding is also consistent with the finding of the study by Peters et al. (2013), stating that especially small companies are likely to be in favor for the basic metrics. However, in the worst-case scenario, simple metrics (e.g. likes, followers) in measurement can mislead marketing efforts in a way that it may even be harmful to organization’s goals. (Peters et al.
2013). Nevertheless, based on the findings of this study, it is challenging to evaluate, whether the metrics selected are most appropriate for the DMOs’ social media marketing and their goals.
In their study, Hays et al. (2013) and Järvinen & Karjaluoto (2015) highlight that metrics selection varies between the organizations, referring mainly to web analytics in digital marketing in general. The findings of this study report similar findings. Even though there were similarities in the measurement techniques, it still seems that different types of measurement techniques are highlighted depending on the DMO. The study by Agostino & Sidorova (2016) provided similar types of results in the metrics selection, stating that choosing the metrics for marketing measurement is fragmented among DMOs. This is natural, as the goals may differ among DMOs. Not just one metrics system exists in social media measurement, but rather, organizations need to define their own measurement systems, which are in line with the strategy. (Peters et al 2013; Järvinen & Karjaluoto 2015).
It can be agreed based on the interviews that with social media metrics, the success of content production is measured rather than number of bookings or number of visitors in the destination.
However, the DMOs’ main goal is to do destination marketing, and after all, attracting visitors is in the ultimate interests among tourism practitioners in the destination. This finding is in line with the study of Peters et al. (2013), suggesting that various types of social media interactions are measured in many social media dashboards by grouping them by the level of interaction linked with engagement (Peters et al. 2013). Some DMOs recognized in the interviews the
importance of engaging the travelers, however, the most mentioned metrics in the interviews, such as like or reach, does not imply the engagement of the user.
Based on the interviews of the study, other important aspects relating to measurement are digital marketing metrics relating to web page. This indicates the importance of combining social media channels and the destination web page, which can be a source of further information to the travelers or even make them buy products or services. In addition to this, factors relating to the customer behavior in the web site as well to the audience in general are considered important among DMOs. According to the interview findings, social media has its role when it comes to learning to know the customer. In the interviews, the practitioners in DMOs highlighted the importance of engaging consumers in their social media marketing. This finding is in line with the Lalicic & Gindl (2018), stating that marketers should understand, which social media campaigns are most effective for engaging consumers. Also, the study by Peters et al. (2013) confirms that highly engaged fans are vital when authentic and sustained reach is being built via social media, and this type of engagement is only achieved with time and care. (Peters et al. 2013).
According to the interview findings, non-numeric data from social media is being followed in DMOs, though following it is not very systematic, either. This is in line with the finding of the study by Mariani et al. (2015), in which it is stated that the marketing managers are not only interested in cold numbers, but rather the sentiment gained with social media posts. According to the findings of this study, non-numeric data is utilized in the form of following and commenting on the travelers’ discussions in social media channels. According to the study by Mariani et al. (2015) and Leung et al. (2013), social media managers in DMOs are more interested in promotional value of social media rather than sales of tourism packages and services in the destination. Similar types of findings were found in this study. This is the case when the DMO’s main task is to brand the destination.
According to Agostino & Sidorova (2016), social media measures are moving towards subjective, text-based measures by quantifying discussions and users’ opinions. According to the findings of this study, this is also the case among DMOs. The conversations and comments in social media channels are utilized in further marketing planning and content creation. This also helps in engaging the customers and leveraging the emotional brand elements, which in turn contributes to emotional brand values (Huertas & Mariné-Roig 2015; 2016b).
Furthermore, from the findings of this research it can be concluded that not only the feedback from the travelers is vital, but also the opinions and feedback of tourism companies operating in the destination are listened to carefully in the Finnish DMOs. One interviewee highlighted the DMO’s role of working on the favor for both travelers and tourism companies of the destination, thinking how the DMOs could keep the balance between these two stakeholders.
This finding is something that was not found in previous research.
As to the financial value, several DMOs of the study agreed that it is an important factor also in social media marketing. However, it is difficult to measure, especially if the DMO’s main task is to brand the destination instead of selling products or services. Measuring the financial value becomes easier, when the DMO practices sales in their digital marketing channels, since the results of marketing become more measurable when it can be shown that marketing results in sales. However, social media improves the website popularity with increasing number of visits to the website (Milano, Baggio & Piattelli 2011; Lalicic & Gindl (2018), so in this way, visitors and ultimately buyers can be directed to the website, where they may end up buying tourism services. On the contrary, the findings revealed that in social media marketing other measures, mainly the so-called qualitative measures are also important, and not just financial.
This finding is in line with the study by Agostino & Sidorova (2016) stating that both practitioners and academics have understood the organizations’ importance for measuring the contribution of social media practices in business purposes, referring to both financial contribution as well as value generated by social media data from users’ interactions. Also, Huang et al. (2011) state that by communicating with customers in social media channels, companies and destinations can get valuable information on competitive advantage and the desires that customers have. This will help marketers in getting new ideas and utilizing them in planning their products and services for customers’ needs. From the study in question, similar types of conclusions can be made.
According to the findings, some DMOs have plans to improve ways of measuring the financial value of social media marketing. Nevertheless, some interviewees in the study even questioned the importance of financial value. According to Leung et al. (2013) and Mariani et al. (2015), industry practitioners have inadequate knowledge about the financial returns on their investment in terms of social media marketing, leading to significant differences in the knowledge of social media marketing assessment among DMOs. Based on this study it can be said that the practitioners are in different stages of assessing social media marketing and its
financial value. Nevertheless, it can be concluded that social media marketing has its effect on creating financial value in the destination because of continuous branding and informing about the products and services in the destination. In some DMOs, the follow-up of sales and linking it with marketing has been solved by building a webstore selling the services offered in the destination, thus improving the tracking the relationship with marketing and sales. In the interviews the webstore was referred to quite often, so based on findings, it may be one solution for assessing the financial value of social media marketing.
The findings also implicate that the DMOs do not really rely on any financial models or performance measurement systems in their social media marketing, however, there is interest in creating them for the future. The models mentioned were mainly relating to conversion rate, KPIs or ROI in relation to sales. On the contrary, even some doubt concerning the usefulness of financial value was perceived among some interviewees. This finding is in line with Hays et al. (2013) stating that limited amount of evidence on the financial value on social media marketing may result in companies not being convinced that their marketing efforts in social media would bring results efficient enough (Leung et al. 2013). According to some interviewees, creating models is challenging since as it was stated above, the DMO does not practice sales but is rather concentrated on branding, and counting value to an image is challenging in social media marketing. In addition to this, the relationship between sales of tourism companies in the destination and marketing practiced by a DMO cannot be directly linked to each other, since it cannot be proved, whether the marketing actions of the DMO directly relate to the sales of the individual tourism companies.
Also, the different levels and practices between DMOs and tourism companies in the destination may create challenges in marketing. The findings made in this study are in line with the research by Mariani et al. (2015); Moro et al. (2016) and Agostino & Sidorova (2016), stating that measuring the success and effectiveness of social media activity is a challenge for DMOs, because they are likely to utilize the data from social media accounts in different ways.
The studies by Leung et al. (2013) and Chan & Denizci Guillet (2011) report similar results, confirming that a universal system for measuring the financial value of social media marketing does not exist. Therefore, destinations and even companies within the destination cannot be compared with each other in terms of social media marketing measurement. That is why some companies may not be committed to their social media marketing practices.
The last theme of the study was decision-making based on social media marketing. The findings show that social media marketing is generally taken into consideration in decision-making and furthermore, its role is usually understood also by the board or top management of the DMO. This finding is in line with Mariani et al. (2015) and Agostino & Sidorova (2016) suggesting that the DMOs understand the importance of social media marketing today. Also, the findings show that social media often plays its role when deciding about budgets as well as investments both in social media and otherwise. The findings also implicate that especially with the help of social media analytics and other data, the board can be convinced about new decisions, as well as in justifying timely resources or future actions. The findings suggest that measuring the financial value is clearly in the interests of the board of the DMOs, as with the help of analytics, it is possible to generate more sales, profit and return on investment. This finding is in line with the studies by and Germann et al. (2013) and Germann, Lilien, Fiedler,
& Kraus (2014) stating that web analytics in general offer objective and quantitative metrics, which can be easily communicated to top management.
In addition to metrics and analytics, the findings suggest that social media discussions are utilized in DMOs, thus benefiting from it in the decision-making. Social media acts as a tool for learning about the preferences and feelings of customers, which can consequently be utilized in decision-making. With the help of social media channels, it is easier to find themes that that are interesting to the audience and especially to different target groups, thus, it can be utilized in marketing planning. This finding is somewhat contradicting with the study by (Lilien 2011; Germann, Lilien, & Rangaswamy 2013) in terms of analytics and marketing decisions, stating that marketing managers tend to rely on intuition and experience when making decisions, as the DMOs still gain valuable information about the customers over social media channels. Nevertheless, the utilization of analytics in decision-making is likely to provide more information based on facts than intuition in social media marketing.
However, there still might be cases when the board or management of the DMO may not completely understand the importance of social media. The DMO may be managed without taking social media marketing let alone metrics enough into consideration. This research partly confirms the study by Hays et al. (2013), stating that proper leadership plays its role in acknowledging the opportunities of social media and a high level of social media activity.
According to the study mentioned, implementing social media marketing is easier, when the management understands its importance in today’s destination marketing.
Based on the findings of the study it can be concluded that the practitioners understand the role of social media and as opposed to previous research, they have gained understanding in how to utilize it in destination marketing. Nevertheless, their actions are more based on learning by doing, which may not be based on an online strategy, even though the goals would be clear.
The ever-changing forms of social media channels and technology should leave space for experimentation and fast changes in the field; however, the question remains how deeply social media marketing should be taken into consideration in strategies? Nevertheless, according to Hays et al. (2013), as the utilization of social media as a tool in destination marketing becomes more and more common, the marketing strategies of DMOs are likely to evolve. As Morgan et al. (2012) state that the ever-changing marketing environment requires ever-changing framework for marketing evaluation, this should be the case also among DMOs.
When it comes to financial value, this research confirms the earlier research results (Agostino
& Sidorova 2016) in a sense that not only financial value is what matters in social media marketing, but it is also the non-measurable data from social media that is important. This study confirms the notion that instead of hard, financial measures, qualitative measures in the form of sensing what happens in channels are the driving force of social media marketing. With the help of non-measurable data, the understanding of customers can be increased and further utilized in social media marketing. The value of social media marketing is extremely valuable, even though challenges exist in putting the value into financial measures. Nevertheless, DMOs are still expected to show the results of social media marketing in the form of financial measures or analytics to the top management.
Finally, social media can be utilized as a source of strategic information, which can be used to develop several business strategies in tourism sector (Munar 2010). Therefore, the role of social media marketing in destination marketing is crucial. According to the findings of this study, the interviewees consider the role of social media important. As the findings of this study suggest, even though financial value in social media cannot be measured directly, it eventually leads to sales, engagement, and eventually more visitors to a destination. Finally, appropriate leadership is likely to contribute to destination success.
5.2 Managerial implications
In this chapter, the managerial implications are presented according to the findings made in the study. Based on the thoughts that the interviewees presented in their study, ideas concerning the theoretical framework, namely the documentation of goals, measurement, future development and co-operation are presented in the following.
According to the findings, the metrics presented by DMOs are so called basic metrics obtained from the social media channels and they are easy to adopt into use. However, the metrics should not be used in isolation. First, the metrics utilized should be well considered. Also, Peters et al.
According to the findings, the metrics presented by DMOs are so called basic metrics obtained from the social media channels and they are easy to adopt into use. However, the metrics should not be used in isolation. First, the metrics utilized should be well considered. Also, Peters et al.