Smarter Programmatic Budgeting for DMOs: A Destination-First Guide
When used strategically, programmatic advertising can help Destination Marketing Organizations maximize impact, reach new audiences, and support their communities, all while staying within budget.
As a DMO, you already know the balancing act: stretching a lean budget, supporting local stakeholders, and delivering results that demonstrate your community’s tourism value. It’s no small feat, but programmatic advertising can help you do more with less.
At its core, programmatic advertising uses data and automation to connect your message with the right audience at the right time. It's efficient, scalable, and highly measurable. But to truly succeed, your budget needs to be guided by strategy — not guesswork.
Here’s how DMOs can take a smarter, goal-driven approach to programmatic budgeting.
1. Start With Your Goals
Before setting any numbers, ask: What are we trying to achieve?
Whether you're looking to:
- Raise awareness about your destination,
- Drive referrals to local businesses and partners,
- Grow your newsletter audience,
- Or encourage meeting and event RFPs,
Your goals should guide how you structure your campaigns and allocate budget.
- For awareness campaigns, expect to invest more in broad targeting to introduce your destination to new audiences.
- For conversions (like newsletter signups or guide downloads), prioritize retargeting users who’ve already shown interest.
Think of your goals as a roadmap. Without them, you're just circling highways, hoping to stumble onto a destination.
2. Budget by the Funnel
The traveler’s journey is rarely linear. Some visitors may plan for months, while others book on a whim. Your budget should reflect the different stages of this journey:
- Top of Funnel (Awareness): This is the “We exist” stage. Introduce your destination to potential visitors using broad targeting. Most of your spend should happen here to maximize reach in key feeder markets.
- Middle of Funnel (Consideration): This audience is warming up. They’ve watched a video, visited your site, or read a blog. Retargeting, short-form video, and native ads work well to keep your destination top-of-mind.
- Bottom of Funnel (Conversion): This is where action happens — signups, referrals, bookings. Here, you can use precise targeting to convert high-intent users who’ve already interacted with your content.
Tip: Avoid the temptation to focus your entire budget on the bottom of the funnel. Without building awareness, you'll run out of people to convert.
3. Understand What Impacts Your Budget
Not all campaigns are created equal. A few key factors will influence your spend:
- Market Size: Larger cities often have higher ad costs due to increased competition.
- Seasonality: Peak seasons command higher CPMs. Consider promoting during shoulder seasons for more efficient spend.
- Competition: Other destinations targeting the same audience can drive up costs.
- Campaign Length: A short, high-impact campaign will burn through your budget quickly, while longer campaigns require consistent pacing.
Bonus Insight: If you're using a DSP like Display & Video 360 (Tempest’s preferred platform), leverage its forecasting tool. It helps simulate expected performance by blending historical trends with your current targeting and budget settings.
4. Budget From the Bottom Up
Instead of starting with “We have $10,000: what can we do?”, flip the approach. Work backward from your desired outcome.
Let’s say you want 1,000 partner referrals:
- Your conversion rate is 10%.
- Your average cost per click (CPC) is $1.00.
Budget = (Target Conversions ÷ Conversion Rate) × CPC = (1,000 ÷ 0.10) × $1.00 = $10,000
This gives you a clear, justifiable budget tied directly to your goals. It also makes internal discussions easier when stakeholders ask why a certain level of investment is needed.
5. Stay Engaged & Keep Optimizing
Programmatic campaigns aren’t "set it and forget it." Performance improves when you're actively managing and learning from the data.
- Start with test campaigns using 5-10% of your total budget to see what creative, audience segments, and formats work best.
- Make time for ongoing optimizations based on real-time results.
- Pause underperforming placements, reinvest in what’s working, and keep your campaign aligned with your goals.
Small tweaks can lead to meaningful gains. Your destination deserves that level of care.
Final Thought: Budgeting With Purpose
At Tempest, we believe every marketing dollar should have purpose and impact. Programmatic campaigns aren’t just about clicks — they’re about inspiring travelers, uplifting communities, and supporting the people who make your destination special.
When your strategy is grounded in goals, structured by the funnel, and fueled by optimization, you’re not just managing a budget. You’re building a smarter, more sustainable path to growth.
Need help navigating programmatic campaigns? Connect with our Growth Marketing team to learn more about Tempest's solutions.
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