In our data & reporting service page, we have a quote from John Wanamaker, someone who is widely considered as a ‘pioneer in marketing’:
“Half the money I spend on advertising is wasted; the trouble is I don’t know which half!”
In this blog, we explore the idea of digital analytics, looking at how they can help companies succeed and determine the value of their marketing efforts.
So, what is Digital Analytics and how does it differ from Web Analytics?
The terms are used interchangeably. In its simplest form, web analytics looks at the analysis of websites and digital analytics looks at a variety of marketing channels such as paid social, search and display, amongst others…
And, why is it key to my business?
100 years ago when John Wanamaker was quoted; technology didn’t exist to help businesses utilise their budgets more efficiently. The value of digital analytics allows you to gather insights more accurately and quantify the return on your investment from marketing channels.
Collecting data from a variety of platforms allows you to look at your funnel more clearly. Each platform offers reporting that allows you to see the bigger picture, helping you to determine the marketing channels that are not performing and channels that are worth investing more in.
For example, if one channel is driving more traffic, yet another drives more conversions. It may suggest that there could be audience targeting issues.
How do I use it effectively?
Firstly, it starts with a strategy to identify your objectives and to have key performance indicators (KPIs) in place.
Secondly, utilise a platform such as Google Data Studio or any other power BI tools that have strong API connections allowing you to connect to data sources such as Facebook, Twitter, Google Analytics etc… This will give you better visibility to measure, in one place.
Finally, you need to be asking yourself the right questions. Data on its own is meaningless without context, here are some examples which may help:
- Why did the traffic spike over a certain period?
- What did I do last time that caused the conversion rate to drop?
- What other metrics can support this problem?
- Any internal/external factors during this campaign?
- What can we learn from this channel/campaign to make better decisions?
Top level data from platforms are better utilised when the data is connected and you’re asking the right questions to determine the true value of your investment in marketing channels.