.svg){kind=small}
How UTM Tags Help Track the Effectiveness of Advertising Campaigns
In online advertising, it is critical to correctly identify marketing channels, using UTM tags to track campaign effectiveness and allocate resources.
In online advertising, understanding whether marketing channels are correctly identified and which ones yield the most profit is critical for businesses. Without in-depth analysis, it is impossible to determine where to focus attention, allocate resources, or invest advertising budgets effectively.
Surprisingly, in an era where every step in marketing should be data-driven, many advertisers still neglect UTM tags. In their pursuit of clicks and conversions, they miss the opportunity to accurately track which channels are performing well.
UTM tags, while simple, are incredibly useful tools that provide insights into the real effectiveness of ad campaigns. They allow marketers to trace where leads come from, assess which keywords and creatives generate the most clicks, and identify which campaign delivers better conversions.
Let’s dive into what UTM technology is and how to use it effectively for your business.
The History of UTM: What It Is and How It Originated
UTM (Urchin Tracking Module) was developed by Urchin Software and later became the foundation of Google Analytics. When Google acquired Urchin, UTM tagging was adopted as a global standard for tracking traffic in GA dashboards. This technology transformed how marketers approach lead generation.
Initially, UTM tags were used to track clicks from various sources—such as banners and email newsletters. Over time, their application has expanded, and UTM tags have become a trusted tool for digital marketing, providing insights into any type of traffic, from search ads to banner networks and social media.
Key Elements of a UTM Tag
Each UTM link contains several parameters that allow for detailed tracking of traffic sources:
- utm_source – Traffic source. This indicates the site, ad network, or platform where the link was clicked. For example, if the traffic originates from Fusify, the source will be "Fusify." This helps determine whether the lead came from a search engine like Google, a social network, or a banner on a news site.
- utm_medium – Traffic type. This parameter helps distinguish between advertising channels and indicates the model used, such as CPC (cost-per-click), CPM (cost-per-thousand-impressions), or Social (social media). For example, if you use CPM through Fusify, the `utm_medium` will be "CPM."
- utm_campaign – Campaign name. This identifies the specific campaign that drove the traffic, such as "denis.ua_october_2024," which reflects the campaign’s timing and purpose. This is especially useful when running multiple campaigns simultaneously.
- utm_term – Keyword or target audience. This helps identify which keywords triggered the clicks (particularly useful for search ads). For instance, if the campaign focuses on remarketing, the `utm_term` might contain "remarketing."
- utm_content – A/B testing assistant. This parameter distinguishes different versions of the same ad. For example, when testing two banners, you can assign `banner_1` and `banner_2` to see which performs better.
How to Create a UTM Tag
Creating UTM tags is now easier than ever with tools like UTM Builder, which generates the tags automatically based on the parameters you provide.
Here’s an example of a UTM link for an ad campaign on Fusify:
If the URL already contains parameters (e.g., "cust_param=3"), you can add UTM tags after the existing parameters:
To shorten long UTM links, tools like Bitly can be used, making them more convenient for emails or social media posts.
How UTM Tags Work
Let’s follow the journey of a UTM-tagged link from click to dashboard. When a user clicks a banner or link with a UTM tag, the data is instantly transmitted to the analytics system—let’s say Google Analytics. The marketer can see where the traffic came from, which campaign generated the leads, and how many were acquired.
.webp)
Imagine the client launches two campaigns through Fusify’s DSP: one with CPC and another with CPM. Predefined UTM tags will later help assess which campaign attracted more traffic and conversions.
For example, the CPC campaign may generate more clicks, but the CPM campaign might yield better conversions. With this data, the client can decide whether to reallocate budgets or adjust the strategy.
It’s also important to ensure that UTM tags don’t conflict with existing parameters in the URL. If internal parameters like `cust_param` are used, they must be added correctly to avoid data duplication and tracking errors.
.webp)
Example of Working with UTM Tags
Suppose you are creating a link for a remarketing campaign. Here’s a UTM-tagged link for a CPM campaign on Fusify:
If the URL already includes parameters, it will look like this:
In this example, we’ve added the parameter `cust_param` with a value of 3, which is used for internal analytics to track specific data and segment traffic. It’s essential to note that analytics systems must support custom parameters—something Google Analytics does not fully accommodate.
Here, the URL and UTM tags work together without conflict, enabling accurate tracking of campaign effectiveness.
What You Need to Know About Macros and How They Simplify UTM Tagging
When managing large campaigns with many ads, manually adding UTM tags can be time-consuming and prone to errors. This is where **macros** come in—special parameters that automatically insert relevant values into the tags.
Here’s an example of a dynamic UTM link:
*The link is built using Fusify macros.
The parameters in curly brackets are replaced with real data during each ad impression, speeding up the team’s work and minimizing errors when creating tags.
To make it even easier to manage UTM tags with macros, we’ve prepared convenient tables with dynamic parameters for popular ad networks. This will streamline automatic tag generation and improve campaign performance tracking.
Using Fusify macros not only saves time but also ensures accuracy across large-scale campaigns, making UTM tracking more reliable and efficient.
DSP Fusify Macros
Facebook/Instagram Macros
TikTok Macros
Taboola Macros
Eskimi Macros
Having the necessary macros at hand for automatically filling UTM tags allows any advertiser to significantly simplify the setup of ad campaigns.
By using UTM tags effectively, you will gain a clear picture of your traffic and be able to make data-driven decisions to improve your campaigns. Don’t overlook these tools if you want to get the most out of your marketing strategy to grow your business.
.webp)
