In online marketing, being able to collect the right performance metrics is very critical because they indicate what campaign is working and what is not. If you are using paid advertising such as Paid Per Click(PPC), the analytics are even more critical to help you assess your Return On Investment(ROI). One of the most effective methods of gathering such metrics is through UTM parameters that enable you to understand with greater precision what is driving traffic and conversions.
What are UTM parameters?
They are codes added to a URL that helps Google Analytics understand where traffic came from. To add the parameters, you must separate them from other parts of the URL with a question mark. It is because of this that you might find a URL that is very long. However, if you remove all the codes after the question mark, the URL would still work fine (but it cannot point to where it came from).
UTM Parameters are divided into five categories:
Utm_source is a required UTM that identifies the source of the traffic. For example, utm_source=twitter
Utm_medium is a required parameter that tells you where the link was used (social media, email advertising, CPC). Example, utm_medium=cps
Utm_campaign is a required UTM and tells the campaign where the link was drawn from. For example, utm_campaign=whitepaper
Utm_content is an optional utm that describes the particular link that a follower used. Example, utm_content=free-trial
Utm_term is an optional utm that captures the keywords that a user followed to get to an ad or product. Example, utm_term=Calgary+painter
How UTM Parameters help in PPC campaigns
Having known what UTM parameters are and how they work, let’s turn to how they help in PPC campaigns.
UTM parameters help you track effectiveness of paid campaigns
Using UTM parameters, you can follow paid advertising and even compare several platforms. For example, you can use (utm_source) to compare which of the two platforms is generating better results. In each platform, you can narrow down to check the campaigns that are working well for your PPC using (utm_campaign) or even check various contents using (utm_content).
Make better decisions from analysis in Google Analytics
With proper application of UTM parameters, you can tell what is working and what is not from Google Analytics. Because the data shows which online marketing campaigns worked well and what did not bring results, you will be able to make the right decision. You might decide to concentrate on the campaigns that are generating higher conversion rates or revitalize what is performing sub-optimally.
Allocate more resources to platforms and campaigns that are delivering results
In marketing, everything narrows down to ROI. If any platform or PPC campaign is not generating sufficient traffic and conversion, UTM parameters will help you identify them and concentrate on what is working. For example, if over 95% of traffic and conversion after an aggressive PPC campaign came from Facebook, while the remaining 5% was from five other social media channels, a marketer might decide only to use Facebook.
Always remember that to get the right metrics from UTM parameters, you need to apply them properly. However, if your AdWord account is enabled, just enable auto-tagging, and the codes will be added automatically.