UTM parameters are a crucial component in any advertising strategy. And what’s best is all it takes to effectively use them is a bit of foresight and organization. It’s REALLY that simple!

What are UTMs?

“Urchin Tracking Modules” go by a few different names: UTM parameters, UTM tags, UTM codes, and just UTMs. It is a snippet of code tagged to the end of a URL. Google Analytics then uses this snippet to determine key information about that user. Specifically, where the user is coming from and how.

If you’ve ever clicked on a sponsored post in your Facebook Newsfeed, a link in an email sent to you by your favorite motorcycle parts brand, or a banner ad in that article about herding alpaca you’re reading, you’ve likely noticed that the URL looks something like this:

https://www.worldsbestparts.com/deals/?utm_source=sharpspring&utm_medium=email&utm_campaign=falldeals&utm_term=minnesota&utm_content=fallcolors

Everything after the question mark is the UTM code. This particular UTM contains the source, medium, campaign, term, and content. We’ll go over what those are in detail a bit further down.

Why Use UTM Parameters?

A UTM code is how Google Analytics knows where your website visitors come from. This is valuable information as it not only differentiates traffic when utilizing multiple advertising mediums but helps in determining the value and return of a given platform.

There are two helpful equations for this is. The first determines the revenue returned:

(Goal Completions by Channel / Leads Closed Rate) x Sales Value

Determine the number of leads generated, divide that number by your salespersons’ closing rate (how likely they are to convert a lead to a sale), and then multiply that by the value of a sale. For example:

I pay $500 per month to run sponsored Facebook posts. I see in Google Analytics that my Facebook campaign has generated 10 leads in July. My salespeople typically have a closing rate of 80% and a sale is worth $1,000 to me.

(10 Leads / 80% Close Rate) x $1,000 = $8,000

You’ll want to factor in what you initially spent on advertising to see the value of it. The second equation determines the return on your investment as a percentage:

[(Revenue - Cost) / Cost ] x 100

Since I am investing $500 per month in Facebook ads, this has a return of $7,500 (1500% increase).

[($8,000 - $500) / $500] x 100 = 1500%

How to Build a UTM tag?

So now that we’ve established the what and the why let’s get to the nuts and bolts of HOW. UTM parameters are startlingly simple to set up as Google has provided a free tool to use: The Campaign URL Builder.

You’ll see a box for the URL followed by five boxes that determine the dimensions of the UTM parameter. That is to say, these five boxes correlate with dimensions in Google Analytics so you’re able to see the source of traffic to your site. Three of the five fields are required while the other two are available for adding greater detail in reporting.

The required three fields are: Campaign Source, Medium, and Name.

The optional two fields are: Campaign Term and Content.

Using our example URL from above, the builder looks like this:

https://www.worldsbestparts.com/deals/?utm_source=sharpspring&utm_medium=email&utm_campaign=falldeals&utm_term=minnesota&utm_content=fallcolors

So what does each field mean? I’m happy you asked!

Campaign Source:

The source is WHERE traffic is coming from: google, facebook, newsletter, etc. This is typically the vendor, platform, or other location where the link is shared.

Campaign Medium:

The medium is HOW traffic is coming to your site. This can be email, cpc, banner, post, etc.

Campaign Name:

Use this field to specify in which campaign this URL is being used. This will help down the line when you want to compare multiple campaigns. It can be as simple as fall, summer, 25discount, 2019aug, etc.

Campaign Term:

This will be used primarily for paid Google Ads campaigns to link the searched term to the click. It can also be used in display advertising campaigns to identify targeting characteristics.

Campaign Content:

Include brief but clear identifying details here to differentiate between creatives/ads that are running at the same time and potentially pointing to the same URL. This is typically a defining characteristic of the ad: sunset, red, dogs, etc.

I’m guessing you’ve noticed a few details in the examples I’ve been using. First, they’re all lowercase and second, they are mostly single words or don’t contain spaces. This is done on purpose to not only keep things simple but also to appeal to how Google digests the UTM code.

Google Analytics reads UTMs as case sensitive. This means that “Facebook” and “facebook” will be split up as two different sources. An easy rule of thumb to use as default is to make everything lowercase. This will avoid any confusion of “Do we use ‘LinkedIn, Linkedin, or linkedin’?” And keep your reporting clean.

Spaces aren’t allowed in the source and medium fields. While spaces aren’t expressly forbade in the name, term, and content fields, it’s best to avoid them in the interest of keeping things clean and simple. If a space is absolutely necessary, use an underscore. Some would say that inserting “%20” for a space works, and while this is technically true it will get messy and when it comes to reporting, clean and uniform is always the way to go.

How to Best Use UTM Tags in Advertising?

I can’t emphasize enough how important it is to stay organized when using UTM tags. The easiest way to do this is to create a document outlining naming conventions as well as a spreadsheet with all UTMs listed. This will become a reference guide so when a new campaign is launched, sources and mediums are consistently assigned and the name, term, and content fields keep a familiar convention as well.

If and when creative is swapped or targeting is adjusted, changing the UTM to match the new creative/targeting will provide an easy way within Google Analytics to track not only when this change took place but also how it has had an effect on the campaign.

Using UTM Parameters is Simple!

You can take your reporting to the next level by developing a simple, organized, and consistent UTM tag convention. This will greatly benefit your decision-making process by clearly outlining how each channel within your marketing strategy is performing. Contact Ecreative for help with all things digital marketing!