Marketing Analytics is the process of collecting marketing data and analyzing performance. It uses key metrics, like ROI, marketing effectiveness, etc., for measuring the performance of your marketing initiatives to extract analytical results and then, make improvements.
In addition to lead generation and sales data, marketing analytics also provide you with insights into customer behavior and trends. This allows marketers to become more efficient at their work and use marketing dollars more effectively. Despite these benefits, many marketers and organizations don’t realize the value of using Marketing Analytics.
In this article, we will tell you why marketing analytics are important, what are the different types of marketing analytics, and their benefits. Let’s start!
Why Do Marketing Analytics Matter?
Most marketers don’t consider the complete marketing picture and make decisions based on the information they get from individual channels. It is especially true in PPC Marketing campaigns, where there are numerous metrics, dimensions, and data combinations. Forget to include a metric, and it may affect the entire campaign.
It not only results in wastage of resources but also reduces the ROI. This is where Marketing Analytics come in! Marketing Analytics is a broad topic that takes into consideration your marketing efforts across all the marketing channels. It helps in better decision-making and effective marketing campaign.
How does Marketing Analytics help?
- By reviewing the Marketing Analytics data, you get answers to know-
- Whether your marketing efforts are paying off. Do they need any improvement?
- What marketing activities your competitors are doing differently? Are they using the same marketing channels as yours?
- Have you allocated the marketing budget properly?
- What budget allocation strategy should you use for the future?
Now, let’s look at the different types of digital marketing analytics and their benefits-
What Are The Different Types Of Marketing Analytics And Their Benefits?
When it comes to analyzing pay-per-click marketing or other marketing data, primarily three types of analytics are involved-
- Descriptive analysis
- Predictive analysis
- Perspective analysis
In order to make the best out of large chunks of marketing data, every marketer should use all these types while studying analytics.
Descriptive Analysis
Descriptive analytics is all about gathering raw data that can be easily interpreted. In simple words, descriptive analytics answer, ‘What has happened?’ It focuses on historical data and analyzes the real-time data for insights on what needs to be done in the future.
It is generally used to determine why success or failure happened. For example, suppose a specific keyword in the PPC campaign was generating thousands of clicks a day, but now gets only a hundred. Does it show that audience is no longer interested in the topic? Or, is the search query no longer relevant? Thus, descriptive analysis helps you learn from the past to know how they might impact future outcomes.
How Does It Benefit?
Descriptive analytics help you know what mistakes to avoid in the future. It lets you know your customers’ behavior so that you can segment them into different categories. Moreover, it shows you the overall performance of the company. Descriptive results a business gets through Google Analytics help understand what strategies are responsible for the success or failure of a campaign.
Predictive Analysis
While analyzing the past data that tells you what happened in the past is useful, knowing what could happen in the future helps you design a more effective marketing strategy. Predictive analysis uses the insights found in descriptive analytics and tries to answer ‘What might happen in the future?’
However, there is no guarantee that the results will be 100% right. Predictive analytics make guesses based on the data insights and tells the probability of occurrence of an event. In order to make predictions, algorithms use data to fill in the missing data with the most probable guesses.
How Does It Benefit?
For the PPC campaigns, predictive analytics are used to make the campaigns more proactive. This way, marketers don’t only react to any changes, but they also plan ahead on what actions to take if something happens. Besides, this analysis helps you figure out the initial stages of the latest trends and predict when it will become critical.
Perspective Analytics
Descriptive analytics provide you with historical insights and predictive analysis use these insights to predict the future. The next step is perspective analytics. It’s all about the manipulating the future and advises you actions to maximize the positive results.
This type of marketing analytics is more complex than the other two. In addition to the internal data, you also need to consider the external factors that might be influencing the future. It gives you an answer to two questions, ‘What might happen if…?’ and ‘What should you do to reach the desired results?’
The complexity of perspective analytics may lead to data misinterpretation, though. But, if you do it correctly, it leads to the most significant impact on the overall business performance.
How Does It Benefit?
Perspective analytics helps improve business performance, as well as customer experience. For example, for PPC campaigns, the analytics can be used to get an answer to the questions, like ‘What will happen if I increase my monthly PPC budget by $200?’, or ‘Which keywords should I target to boost the ROI?’
Thus, you can optimize your marketing efforts for better outcomes as you have already identified the possible uncertainties.
To help make selecting valuable keywords easier, many marketers rely on keyword suggestion tools. Check keyword search volume one of the best keyword research tools available to marketers is the PPCexpo Keyword Planner. You can check keyword search volume and can do more with this tool.
To Sum Up
Marketing Analytics is the best way to track your business’s performance, understand the customers’ requirements, and find out what’s working for your campaign or what isn’t. When you turn the complex analytical data into useful information, you can optimize your future marketing efforts for better outcomes. It helps you measure your business’s progress and make improvements in the marketing strategies to stay goal-oriented.
In a nutshell, marketing analytics help you know where you should focus more and how to create the right marketing model for your business. So, make sure to use the marketing analysis process to ensure a successful 2021 for your campaign.
