What is a utm parameter?

When you share a link online, you want to know if people clicked it, where they came from, and if that link led to something important, like a sale or a sign-up. This is where UTM parameters come in handy. UTM stands for Urchin Tracking Module, and these are small bits of code you add to the end of a regular website address. They don't change where the link goes, but they tell your analytics tools, like Google Analytics, specific details about the click.

Think of UTM parameters like a special label you put on a package. The package still goes to the same address, but the label tells you exactly where it started its journey, what kind of delivery service was used, and why it was sent. For marketers, these labels are crucial for understanding which marketing efforts are working and which might need a change. They help you connect the dots between your promotional activities and the actual traffic and actions on your website.

Using UTMs allows you to see more than just 'traffic from Facebook.' You can see 'traffic from Facebook paid ad campaign summer sale,' which gives you much more useful information to make smart business decisions.

Why UTM parameters matter for your marketing

UTM parameters are not just a nice-to-have; they are a fundamental tool for any marketer who wants to understand their audience and optimize their spending. Without them, much of your marketing data would be vague and difficult to act upon.

Clear insights into traffic sources

Imagine you're running ads on Facebook, Instagram, and LinkedIn, and also sending out an email newsletter. Without UTMs, your analytics might just show 'social media' or 'email' traffic. With UTMs, you can break it down to see exactly how much traffic came from your Facebook ad for a specific product versus your Instagram story promoting another. This level of detail helps you understand where your audience is most engaged and where your efforts are paying off.

Measure campaign performance accurately

Every marketing campaign has a goal, whether it's more website visits, leads, or sales. UTM parameters allow you to tie specific website actions directly back to the campaign that drove them. This means you can calculate the return on investment (ROI) for each campaign, determining which ones are truly profitable and which are costing you money without delivering results. This data is invaluable for budgeting and strategy planning.

Optimize future marketing strategies

By understanding what works, you can do more of it. If you see that a particular email subject line or a specific call-to-action in a social media post consistently drives higher quality traffic or more conversions, you can replicate that success in future campaigns. UTM data helps you learn from your past efforts, allowing you to fine-tune your messaging, channels, and content for better outcomes.

How to use UTM parameters effectively

Using UTMs involves adding specific tags to your URLs. There are five main types of parameters, three of which are required for most tracking, and two are optional but very useful.

Required UTM parameters

• utm_source: This tells you where the traffic came from. Examples include 'google', 'facebook', 'newsletter', 'blog'.
• utm_medium: This describes the marketing channel. Examples include 'cpc' (cost-per-click), 'organic', 'email', 'social', 'display'.
• utm_campaign: This identifies a specific campaign or promotion. Examples include 'summer_sale', 'new_product_launch', 'spring_newsletter'.

Optional UTM parameters

• utm_term: Used for paid search to identify keywords. Example: 'running+shoes'.
• utm_content: Used to differentiate between different ads or links within the same campaign. Example: 'banner_ad_v2', 'text_link_top'.

When you combine these, your URL might look something like this:
https://www.example.com/product-page?utm_source=facebook&utm_medium=cpc&utm_campaign=summer_sale&utm_content=banner_ad_v2

Best practices for tracking with UTMs

To get the most out of your UTM tracking, it's important to follow some best practices.

Consistency is key

Decide on a naming convention and stick to it. For example, always use 'facebook' for your source, not 'Facebook' or 'FB'. This prevents your analytics reports from showing the same source or medium multiple times under slightly different names, making your data messy and harder to analyze.

Use a UTM builder tool

Manually typing out UTM parameters can lead to errors. Tools like Google's Campaign URL Builder make it easy to create correctly formatted URLs. Simply enter your original URL and the parameter values, and the tool will generate the complete, tagged URL for you.

Document your naming conventions

Especially if you work with a team, create a shared document that outlines your standard naming conventions for sources, mediums, and campaigns. This ensures everyone uses the same terms, leading to cleaner and more reliable data.

Keep them lowercase

Most analytics tools treat 'facebook' and 'Facebook' as two different entries. Using only lowercase letters for all your UTM values will help consolidate your data and prevent fragmentation.

Avoid using UTMs for internal links

Only use UTM parameters for links that bring users to your website from external sources. Using them on links within your own website can mess up your analytics data, making it appear as if internal navigation is an external traffic source.

By consistently applying UTM parameters, you gain a powerful lens through which to view your marketing performance. Start small by tagging links in your next email or social media post, and you will quickly see the benefits of more precise data.