Have you ever run a digital ad campaign and felt like you have no idea where your ad budget went?
I get it. It’s frustrating to put time, effort, and money behind your ad campaign, only to feel like you aren’t seeing the ROI.
But there’s one significant way to see the return on your ad spend (ROAS): UTM codes.
Once properly applied, UTM can provide the data that helps you make informed digital advertising decisions, maximize your budget, and get more sales!
Here’s why you need UTM codes in every one of your digital advertising campaigns.
What are UTM codes?
UTM (urchin tracking module) codes are added to the end of a custom URL to help you track users and their actions on your site.
UTM codes use parameters (like categories) to show you where the user came from, what action they took, and more detailed information you can use to make your ad campaigns more effective.
The beginning of your UTM code details where traffic goes (your website). The next section shows where traffic comes from (for the above example, Google). Following explains how traffic gets there (ads, email, newsletter, etc.), and finally, why the traffic comes.
How do UTM codes work in a digital advertising campaign?
For example, let’s imagine we promoted a client’s summer sale in their monthly newsletter, sent through Hubspot (their CRM platform). We also ran Google Display Ads about the sale.
Through the UTM, we can track if the newsletter or the Google ad drove more traffic to the website, as well as which users spent more money.
This Google Analytics snapshot shows the ad drove more traffic overall, but the newsletter attracted returning customers who spent more money during the sale. That tells us the newsletter is an important tool to use for sales conversions, whereas Google attracted new customers and increased brand awareness.
In a digital advertising campaign, UTMs provide a clear view of which digital marketing tool worked best.
Why do I need UTM codes in my digital ad campaign?
To put it simply, UTM codes let you quickly analyze the success of your digital ad campaign and where it is worth putting more of your resources to get the most out of your ROAS and ROI. Seeing which Google ads, newsletters, and/or other links (including organic traffic and paid ads) are bringing in the most traffic enables you to make the most informed decisions and guide your campaign to success.
If you’re running any kind of digital ad campaign and want to make sure your ad spend is being used to its fullest, UTMs are the way to go! Want to dig deeper or learn how I can help you set them up for your next digital ad campaign? Email me here!
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