Voluum Glossary

What is UTM tracking

UTM Tracking, short for "Urchin Tracking Module Tracking," is a digital marketing technique used to measure and analyze the effectiveness of online marketing campaigns by appending unique parameters to URLs. These parameters are known as UTM parameters or tags, which enable businesses to track user interactions and gather valuable data about the sources and mediums that drive traffic to their websites. UTM tracking is a widely used  schematic for passing information between platforms but definitely not the only one.

Many platforms use their own naming patterns for parameters and tokens, which makes setup confusing but luckily many platforms such as ad trackers, including Voluum, have plenty of templates with tracking tokens of all popular ad networks and affiliate networks.

History

The origins of UTM tracking can be traced back to the early 2000s when the Urchin Software Corporation, a web analytics company, developed a system for adding custom tracking parameters to URLs. In 2005, Google acquired Urchin and integrated its technology into Google Analytics, renaming it Google Analytics urchin.js. Over time, UTM tracking gained popularity as a powerful method for digital marketers to gain insights into their online campaigns. Today, it remains a vital component of digital marketing analytics.

Supported Parameters

utm_source: This parameter identifies the source of traffic, such as a search engine, newsletter, or social media platform. Example: utm_source=facebook.

utm_medium: Defines the medium through which the user arrived at your website, such as organic search, paid advertising, or email marketing. Example: utm_medium=cpc.

utm_campaign: Specifies the name of the marketing campaign, allowing you to differentiate between various campaigns within the same source and medium. Example: utm_campaign=summer_sale.

utm_term: Typically used for paid search advertising, this parameter records the specific keyword or phrase that triggered the click. Example: utm_term=running+shoes.

utm_content: Used to differentiate between different pieces of content within the same campaign, such as different ad creatives or links. Example: utm_content=cta_button.

Examples:

Let’s say you are running a summer marketing campaign on Facebook to promote your fitness apparel store. You can use UTM parameters to track the effectiveness of different posts and ads within the campaign:

Post 1: https://example.com/?utm_source=facebook&utm_medium=social&utm_campaign=summer_sale&utm_content=post1

Ad 1: https://example.com/?utm_source=facebook&utm_medium=cpc&utm_campaign=summer_sale&utm_content=ad1

Ad 2: https://example.com/?utm_source=facebook&utm_medium=cpc&utm_campaign=summer_sale&utm_content=ad2

By analyzing the data collected from these URLs, you can determine which source, medium, campaign, and content are driving the most traffic and conversions, helping you allocate your marketing budget more effectively.

Benefits of UTM Tracking:

Data-Driven Decisions: UTM tracking provides precise insights into the performance of your marketing efforts. With data on sources, mediums, and campaigns that generate the most conversions, you can make informed decisions to optimize your strategies.

ROI Measurement: By attributing specific conversions and revenue to individual campaigns or channels, UTM tracking allows you to calculate the return on investment for each marketing initiative, helping you allocate resources wisely.

A/B Testing: UTM parameters enable you to conduct A/B tests easily. By comparing the performance of different ads, content, or channels, you can refine your marketing strategies for better results.

Campaign Attribution: UTM tracking helps you understand the customer journey by tracking touchpoints. You can see which sources and mediums played a role in converting a visitor into a customer, providing valuable insights for attribution modeling.

Custom Reporting: UTM data can be integrated into various analytics tools, allowing you to create custom reports and dashboards tailored to your specific business goals and metrics.

In conclusion, UTM tracking is a crucial component of modern digital marketing. It empowers businesses to gather granular data about their online campaigns, enabling them to make data-driven decisions, allocate resources effectively, and optimize their marketing strategies for better results. By appending UTM parameters to URLs, businesses can gain a deeper understanding of their online traffic and conversions, ultimately improving their ROI and competitiveness in the digital landscape.