Demystifying UTM Parameters [LNIM131 Transcript]

This is the full transcript for Episode 131. For the show notes and audio, see LNIM131 Show Notes.

Internet Marketing Fortune Cookie: The Crab Wonton

“A crab wonton a day keeps the doctor away.” This fortune cookie is a play on the old apple-a-day proverb, and it carries a surprisingly useful marketing lesson.

The crab rangoon is not actually Chinese food. It is a fusion of American cuisine, Philadelphia cream cheese stuffed inside a Chinese wonton wrapper and deep fried. It was invented by American Chinese restaurants and became wildly successful by combining two culinary traditions into something new.

The lesson: accepting change and doing new things in your business is good for you. The tactics that got you to where you are today may not get you where you need to go next. The SEO methods that worked in 2010 and 2011, article marketing, low-quality link building, thin content, no longer work and can actively harm your rankings. Embracing strategic change, like the fusion that created the crab rangoon, is how businesses grow.

UTM Parameters Explained

When you click a link, the URL typically has three parts you recognize: the protocol (HTTP or HTTPS), the domain name, and the path to the page. Sometimes you will also see a question mark followed by what looks like a string of gobbledygook. Those extra parameters are UTM tags, and they are one of the most important tools for understanding where your website traffic comes from.

UTM stands for Urchin Tracking Module. Google acquired a company called Urchin around 2005, and that technology became the foundation for Google Analytics. To this day, Google Analytics recognizes UTM parameters and uses them to tell you exactly how visitors found your site.

The Four Key UTM Parameters

1. Source (required) — identifies which site sent the traffic. Examples: Google, Facebook, Twitter, a specific newsletter.
2. Medium — describes the type of advertising or marketing channel. Examples: social, cpc (cost-per-click), banner, email.
3. Campaign — identifies the specific promotion or effort. Examples: spring-sale, halloween-promo, product-launch.
4. Content — distinguishes between different links within the same campaign. This is especially useful for A/B testing. Examples: logo-link, text-link, sidebar-banner.

The San Antonio Road Trip Analogy

Think of UTM parameters like planning a road trip. Your destination is the URL, the webpage you are sending people to (San Antonio). Your source is where the traffic is coming from (Dallas). Your medium is how you are getting there (by car). Your campaign is why you are making the trip (Spring Break).

Once all of this is set up, Google Analytics can tell you how many people arrived, when they got there, and what they did after they arrived. It is like tracking that the road trip from Dallas by car for Spring Break resulted in a hotel booking at Hotel Contessa and enchiladas at Casa Rio.

How to Create UTM-Tagged URLs

Google provides a free Campaign URL Builder that makes creating tagged URLs straightforward. Enter your destination URL, fill in the source, medium, and campaign fields, and the tool generates the complete tagged URL for you.

If you are running Facebook ads, email campaigns, or any kind of paid traffic, UTM parameters are how you determine which specific ads and placements are actually driving results. Combined with Google Analytics conversion goals, you can trace the exact path from an ad click to an opt-in or sale.

Key Takeaways

• UTM parameters are tags you add to URLs so Google Analytics can tell you exactly where traffic came from
• The four main parameters are source, medium, campaign, and content
• Use Google's free Campaign URL Builder to create tagged URLs
• UTM tracking is essential for understanding which ads and placements deliver results
• Strategic change in your business, like the fusion that created the crab rangoon, is how you stay competitive

What's Changed Since This Episode

Mark recorded this episode in March 2017. Google Analytics has undergone a complete overhaul. Universal Analytics (the version Mark references) was sunset in July 2023 and replaced by Google Analytics 4 (GA4). UTM parameters still work exactly the same way, but the interface for viewing campaign data in GA4 is different from what Mark would have been using.

The Campaign URL Builder has moved. The old URL at ga-dev-tools.appspot.com now redirects to the updated version. The tool functions the same way, but the address has changed.

Privacy changes affect tracking accuracy. Browser-level cookie restrictions, ad blockers, and regulations like GDPR and CCPA mean that analytics data is less complete than it was in 2017. UTM parameters remain the standard approach for campaign tracking, but marketers should expect some data loss and consider server-side tracking as a supplement.

Resources Mentioned

• Google Campaign URL Builder
• Google Analytics
• LNIM131 Show Notes

Related Episodes

• LNIM132 — Why I Invest in Social Media Marketing World
• LNIM130 — Amazon Affiliate Commission Changes
• LNIM133 — What Is a Facebook Pixel

Listen and Subscribe

Listen to Late Night Internet Marketing on Apple Podcasts or subscribe at latenightim.com/internet-marketing-podcast/. Have a question for Mark? Call the digital recorder at 214-444-8655 or drop a comment below.