Measuring Destination Marketing: Comparing Four Models of Advertising Conversion

Abstract

Conversion studies are a standard technique by which marketers evaluate advertisement effectiveness. A review of the tourism literature finds that advertising conversion studies use a number of metrics that have evolved to include most aspects of visitor decisions; however, this literature also indicates that there are few comparative studies focusing on the variability of response. The overall goal of this study is to identify and compare estimates of impact on visitor expenditures using four different approaches ranging from traditional advertising models (i.e., gross conversion rate and net conversion rate) to a more comprehensive facets-based destination advertisement response (DAR) model. The various models result in a huge range of impact estimates and it is concluded that the DAR model offers, both theoretically and practically, a powerful framework for evaluating advertising response in that it incorporates the possibility that destination advertising affects decisions related to a range of trip-related activities.