You are invited to help build Potential on Investment (POI) 2.0 as destinations begin to answer the question: “What is the financial value of social media and digital activity on earned media channels?”
What is POI?
POI is a formula that destination marketers can use to measure the potential financial impact of a DMO’s social media channels. Destination Think! released POI 1.0 in 2016 after coordinating a collaboration between six destination marketing organizations (DMOs).
Since then, Tourism and Events Queensland (TEQ) has used POI to measure the effectiveness of its owned social media channels.
“POI is a powerful measure that’s helped us gauge the potential monetary value of our social media marketing activity to Queensland’s visitor economy,” says Kate Duffy, Digital Marketing Manager at TEQ.
“While not a perfect measure, the intent of POI was to create a framework that would start the conversation around the impact of social media marketing. We continue to test, adjust and improve the framework.”
Now, TEQ and Destination Think! invite your DMO to join us in developing POI 2.0.
How can I get involved?
Fill out the form below to express your DMO’s interest in collaborating on the next stage of POI before Monday, March 26, 2018.
Why use Potential on Investment?
Your destination can measure visitor spending. Your team knows how important word of mouth is to promoting your destination. And you can all appreciate a social media program or a digital campaign that gets people talking.
But it has been difficult to quantify the financial value of a DMO’s online word of mouth when DMOs and their stakeholders ask:
- What is the Return on Investment (ROI) of social media?
- What is the financial value of earned media online?
A group of leading destinations began answering questions like these by developing the Potential on Investment (POI) formula, version 1.0.
Australia’s Queensland measures social media impact with POI 1.0
Tourism and Events Queensland (TEQ) contributed to the development of POI 1.0 and has been using it to measure the effectiveness of its owned social media channels. Kate Duffy, Digital Marketing Manager at TEQ, has described how POI allows the organization to connect social media with its larger goals.
“POI is a powerful measure that’s helped us gauge the potential monetary value of our social media marketing activity to Queensland’s visitor economy. It is a measure that’s connected to our overarching business objective of increasing overnight visitor expenditure.
“POI has given us a consistent measure to value the impact of our work, which our RTO (regional tourism organization) partners have also been able to adopt.”
TEQ is now ready to help develop the next version of POI.
Potential on Investment (POI) 1.0 addresses the question: What is the ROI of social media?
You’ve heard this question before. Social media platforms are awash in data about reach and engagement, which help destination marketers analyse how well their content performs within those media. In other words, it’s relatively easy to measure efficiency.
But to measure effectiveness – the value of social media marketing for destinations’ tourism stakeholders and residents – DMOs need to correlate social media results with visitor spending.
Six DMOs partnered to build a framework that measures the effectiveness, or potential value of social media marketing:
• Destination British Columbia
• Illinois Office of Tourism
• Innovation Norway
• Tourism and Events Queensland
• Visit England
• Visit Flanders
This framework resulted in the metric called Potential on Investment (POI), which allows destination marketers to benchmark and measure the potential monetary value resulting from social media activities.
- If you haven’t already, download the free POI 1.0 white paper and calculator here.
Why build the next version of POI?
It is time to begin an industry-wide discussion about the impact of earned media.
POI 1.0 measures the impact of owned and paid social media to supplement the traditional paid media metric of advertising value equivalent (AVE).
But as online media channels continue to splinter and evolve, word of mouth is decentralizing. More and more publishers, influencers and individuals use websites, blogs or their own social media channels to talk about your destination. What is the impact of these conversations?
POI 2.0 would help destinations correlate online earned media activity with potential financial impact. It would become a vital new metric alongside measurements of Net Promoter Score (NPS, which measures visitor satisfaction) and sentiment analysis. The next stage of POI would also include more travel markets to provide a more comprehensive tool.
We invite your DMO to join TEQ and an international group of destinations to help us answer this question:
“What is the financial value of social media and digital activity on earned media channels?”
Participating DMOs would contribute primary research that improves the POI formula as it affects their markets. A diverse group of destinations will make POI a robust and useful reporting tool to demonstrate the value of each DMO’s work by connecting it to potential visitor spending.
Get involved with the next phase of POI.
- Would measuring the potential impact of online earned media be valuable to your organization?
- Will your DMO help the destination marketing industry develop POI 2.0?