If you are not consistently using UTM tracking in your marketing campaigns, it’s a great place to start because businesses thrive when they lead with data-driven decision-making.
This is especially true in the ever-evolving landscape of digital marketing as the number of channels we can use to reach customers seems to grow exponentially. To create truly effective digital marketing campaigns, it's essential to have a clear understanding about what platforms and what content is leading to engagement and conversions, so you know where your time and budget is best spent. But how do you accurately track and measure performance without a lot of manual work?
Read on to find out a bit more about the basics of UTM tracking and a few of the key benefits you will gain with a UTM tracking strategy.
What is UTM Tracking?
UTM (Urchin Tracking Module) tracking is a system developed by Urchin Software Corporation, which was later acquired by Google and played a pivotal role in the development of Google Analytics. UTM tracking involves adding unique tags or parameters at the end of the URLs (links) used in marketing campaigns. The additional information added to the links opens up a world of granular tracking about how users are getting to your website, so you can accurately track and analyze the impact of specific digital marketing campaigns and content. When a user clicks on a UTM-tagged link, the UTM parameters are sent to your digital marketing platforms where they can be analyzed.
The Anatomy of UTM Codes
While it may sound very technical, UTM coding is simply adding some additional text to the links you are using in your content. As the campaign manager, you get to decide how to code your UTM links. A typical UTM link consists of the following parameters:
This is the destination URL you are directing the user to. This may be a landing page for a specific campaign or another page on your website.
This parameter identifies the specific source where the link was placed, such as a social media platform, email newsletter, or referral website. For example, if a user gets to your website by clicking on a link from an email newsletter announcing a new product or service, the utm_source tag will be set to newsletter.
The medium parameter represents the type of marketing medium or channel that linked a user to your site, such as email, banner ad, organic search, CPC (cost-per-click), social media, etc. Sticking with the product announcement via email, for example, the utm_medium tag would be email.
This parameter helps you identify the specific marketing initiative to which this content is related. It's especially useful to track when you have multiple initiatives running at the same time. For example, you may be simultaneously running a product launch campaign and a seasonal promotion. For our example, the utm_campaign tag would reflect the name of the product you are launching. Let's say in this example that we are announcing a new product line of ice creams, so the campaign_utm might be ice_cream_launch_2023.
The term is typically for paid advertising to track which specific keywords or terms trigger the ad.
This is also typically for paid advertising and differentiates between different versions of the same content or ad.
The source, medium, and campaign parameters should be in all links. The term and content parameters should be included when tracking paid advertising. After you've selected how you want to define each parameter, you add each parameter to your URL. In our product launch example, the final UTM link will look like this: https://www.mywebsite.com/?utm_source=newsletter&utm_medium=email&utm_campaign=ice_cream_launch_2023
The Importance of UTM Tracking
Accurate Attribution and Budget Allocation
Attributing the success of a marketing campaign to the right channels is a significant challenge for businesses. UTM tracking provides clarity by offering detailed insights into which sources and mediums are driving traffic and conversions. The detailed attribution that UTM tracking provides helps you to understand where to invest your budget and resources for maximum ROI.
Understanding Customer Behavior
UTM tracking also offers valuable insights into customer behavior. By analyzing the data from UTM codes, you can identify the preferences of your target audience, their preferred platforms, and the content that resonates the most with them. Armed with this knowledge, you can refine your strategies to better speak to your target audiences.
Optimizing Marketing Strategies
UTM tracking provides marketers with insightful data to fine-tune their marketing efforts. By identifying what your high-performing channels are, you can allocate your resources to those channels and understand opportunities for optimizing any under-performing channels. Additionally, using A/B testing to compare different variations of a campaign or a landing page can help you identify the best content, messaging, and design elements for your campaign.
Identifying Key Partners and Influencers
If your business involves partnerships, UTM tracking can help track the traffic and conversions that come from specific partners or collaborators. This insight can help you identify which are your most valuable relationships.
Tracking Cross-Channel Campaigns
Many businesses have marketing campaigns running on multiple channels at the same time. For example, many of our clients will concurrently use email marketing, social media, and at least 1 PPC digital advertising platform at the same time. UTM tracking allows them to see how these cross-channel campaigns interact with each other. For example, you can measure how an email campaign or an ad impacts traffic to your website.
UTM tracking takes the guesswork and manual work out of measuring how your digital marketing efforts are performing. It is a game-changer for digital marketers looking to really understand what marketing efforts are paying off. The granularity of the data provided allows for truly accurate analysis of your campaigns and content. We have seen clients use UTM tracking to refine their campaign content and increase conversions and ROI.
If you are curious to know how UTM tracking could help your marketing strategy, or if you are not sure where to start, we’d love to hear from you! Our marketing team is passionate about helping businesses discover and implement marketing processes that provide the data and analytics you need to track, measure, and optimize your campaigns. You can send us a message at email@example.com or call us at 800-880-1960.