Local Hospitality Advertising: Why Previous Campaigns Need a Fresh Look

Local Hospitality Ad Spending Trends

How are hospitality advertisers spending at the local level? According to BIA’s data, the total amount is $16.4 billion, a slight increase over 2024. The largest share of spending is on mobile digital advertising, which encompasses all ads displayed on these devices, excluding OTT/CTV.

OTT/CTV has the most significant year-over-year change at 19.2%, while broadcast and cable TV declined. It has become a favorite tactic for this group due to its targeting capabilities.

There’s good news for 2026, as the vertical is expected to increase overall local ad spending to $17.3 billion. These optimistic projections anticipate increased demand for travel and all the companies that provide it.

Travel and Hospitality Trends

The travel experience continues to evolve and looks different across consumer groups. Some trends align with generational preferences, while others are broader. These trends can help inform local hospitality advertising campaigns.

Trips for Specific Events

A travel survey found that 60% of people are coordinating trips tied to specific events. It could be concerts, sporting events or other unique experiences. If your market is an epicenter for these, then it makes for a timely campaign.

Everyone will want to capture visitors at these events, from hotels to restaurants to local attractions. You can help them with event-specific campaigns that use geofencing, display, OTT/CTV and social media ads.

Pre-event, try targeting areas that are most likely to see an influx of visitors. If your city has a national sports team, they have fans throughout your state and maybe neighboring ones as well.

During the event, geofencing certain areas could drive foot traffic to restaurants. Social media ads can target audiences with an affinity for a team or performer.

A Dramatic Change of Scenery

Another trend that’s not new but becoming more obvious is travelers looking for cooler weather in the summer and warmer weather in the winter. Markets up north can see many arrivals from areas with extreme heat and humidity.

Those who have to grind through months of snow and ice are eager to have a taste of sunshine.

If your area can be the solution for this, hospitality advertisers should consider targeted ads to reach the people looking for cooler or warmer days. The ad creative can capture this sentiment, as well. Tactics to use include OTT/CTV, display and social media.

Tourists Seeking Value Still

Travel is discretionary spending, and those who do have it may have somewhat less this year. They are looking for deals for long weekend getaways, and your town could be an excellent fit for them.

Hospitality businesses should consider specific promos for upcoming long weekends. It’s not just about the rate; bundles are attractive, which could include the room, dining and spa treatments. Americans love a deal that provides for it all!

Catching Spontaneous Travelers

While many consumers plan their trips for months in advance, some will be last-minute bookers. Since hospitality is a time-constrained purchase, hotels, restaurants and attractions need bookings, or they lose income.

If your market is a destination for city dwellers or a major metropolitan area that has lots of weekend visitors from neighboring towns, this type of campaign could be successful. Retargeting folks who have previously visited is a good idea, as are SEM ads using keywords for last-minute weekend getaways.