The arena of modern marketing is digital. Yes, there’s still space for print advertising, TV spots and billboards, but the vast majority of marketing materials and techniques live online in the 2020s. That’s why every brand worth its salt will be investing plenty of time and money into digital marketing today. However, it’s not enough to simply put materials out there and expect to see your profits rise. It’s essential for companies to properly understand the relationship and balance between digital marketing and analytics to ensure consistent success.
The importance of analytics in digital marketing cannot be overstated. Tracking data allows for better understanding of performance, customer behaviour, personalisation and more. This article will highlight the importance of analytics from the perspective of a digital marketing agency, so you can apply the principles in your own promotional efforts.
Measuring performance in a range of ways
Digital marketing analytics tools give you the ability to track the performance of your campaigns, measuring elements like traffic driven, click-through rates, conversions and other forms of engagement. These are simple, concrete things that you can track and monitor to determine how effective a marketing campaign is. You might get a gist from an increase in sales, but these granular figures are essential to comprehensive understanding.
Customer behaviour interpretation
Digital analytics for marketing can be a lot more specific than just if the customer decided to click through or make a purchase. These days, you can collect a lot of data about users and how they interact with your marketing materials, website, apps and more, tracking things like:
- Click location
- Time spent on each page
- Which pages offer the best conversion
By taking this information, you can get a better picture of who your users are and what they actually respond to from your marketing efforts and branding. You can also use the info for customer segmentation, which allows for better demographic targeting.
Data-focused optimisation
All this information is great, but really, you need to know what you’re doing with it. Using analytics in digital marketing should be a window into enhancements and optimisation. Your data will allow you to run A/B tests and trial different techniques to make the best possible impact. It’s worth noting that you can optimise your campaigns in a number of unique directions.
Personalisation
Analytics can be used to tailor marketing messages to different segments, or even specific users, depending on the nature of your data collection. This should lead to better engagement and higher conversion overall.
ROI & budget allocation
When you combine digital marketing and analytics, you get a better understanding of where your money’s going and why. You can identify your effective channels and invest where you get the best returns.
Real-time decisions & predictive analytics
A lot of the analytics tools out there offer real-time data, meaning you can stop under-performing ads, boost higher performance options and tweak content on the move. Similarly, a lot of the data you collect can offer predictive analysis, allowing you to make better plans for the future.
Digital marketing and analytics belong together
You need analytics to make sure you’re getting the most from your digital marketing. Growth requires consistent improvement, which also means being able to hold your own decisions to account and track how your work compares to your competition. It’s vital to set up analytics as a core facet of your marketing strategy as a means of getting better. Otherwise, you risk wasting efforts in the wrong directions.
If your marketing budget isn’t particularly substantial or you’re struggling to implement analytics, consider working with an external firm. Digital marketing companies use analytics as a way to show how their approach is working, so you can trust that a reliable business will offer you consistent feedback and performance information.
