Advertising Data Analytics

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Advertising Data Analytics

An argument can be made that analytics in advertising is the most important component of advertising. Without advertising data analytics, you don’t know how much you’re spending. You don’t know whether you’re spending it in the right places. You don’t know how to improve your campaigns or where your campaigns are most active and successful.

What is advertising data analytics?

Advertising data analytics refers to keeping track of key metrics in an advertising campaign, such as ROAS. These metrics are then analyzed. Is your ROAS going down? Perhaps you’re saturated within the market. Perhaps it’s seasonal. Is your ROAS going up? Maybe you should spend more money on that particular campaign.

So advertising data analytics is what tells you what’s going on with your campaign. And that data has to be as accurate as possible. If it isn’t accurate, you’re not going to draw the right conclusions. In fact, you might even be misled in harmful ways.

Because of this, you need to work to ensure that your analytics in advertising are as comprehensive and accurate as possible. Marketers can collect advertising data from a lot of venues. A popular example is Google Analytics. But because they’re collecting data from so many venues, they also need to be able to consolidate that information and standardize it.

Today, companies are having to manage more advertising data than ever before. Companies are finding that the manual data aggregation, cleaning, and harmonization that must be done before data analysis can occur is highly time-consuming and error-prone. Many dashboard systems have emerged for the management, transformation, and visualization of real-time advertising data for this very reason.

Companies need to be cautious about their advertising data analytics. If they aren’t able to calculate their analytics effectively, they could end up making very poor decisions regarding their advertising spend. Companies also need to be aware that these analytics will change over time and that to remain scalable and agile, the company itself has to be able to change its analysis as the channels do.

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Google Analytics

Google Analytics is one of the most popular analytics platforms. This free tool integrates with Google Ads, which is also very popular, and can give you key insights into the performance of your website.

In some ways, it also improves aggregation. Google Analytics can show how much traffic is coming into your website from other venues, such as Twitter and Facebook. But that’s all it can do; it doesn’t go both ways.

So, Google Analytics can be considered a form of aggregation service, but only for some platforms. Google Analytics still has the challenge of not thoroughly integrating with other advertising channels.

Some common metrics tracked on Google Analytics include traffic, users, time spent on the site, and bounce rate. It’s easy to see how these could allow marketers to glean insights. If traffic is going up, all is good. But if traffic is going up and conversions are going down, that traffic might not be helpful.

Similarly, if bounce rates are going way up even as ad traffic goes up, the ads are actually not effectively portraying the site (or the site doesn’t have an effective landing page).

As you can see, advertising data analytics also need to be, well, analyzed. The metrics that are tracked need to be analyzed for why they are the way they are, which isn’t always as cut-and-dry as the metrics themselves. You may see ROAS going up, up, up, but that doesn’t mean you know why it’s doing that. The more data you have, the more likely it is that you can actually identify the root cause of events.

Digital Marketing Analytics

What types of digital marketing analytics do companies rely upon to evaluate their campaigns?

Let’s just take a look at, for instance, a Facebook marketing campaign and the digital marketing analytics that would matter.

If you boost a Facebook event, Facebook Insights (their marketing analytics platform) will track how many people are going or interested in the event. You’ll see how many people decided to go to the event. And you’ll see how your ROAS is going; you’ll see how much each response cost you.

But what you won’t see is data from other platforms where you advertised the event, because the analytics are only relative to Facebook. So, you’re not going to get a lot of cross channel marketing information; you’re just going to get the data that’s held within Facebook’s silo.

This is a continual challenge for marketers because they can’t see how their campaigns are influencing each other unless they use a data management, transformation, and reporting tool. But consolidated solutions like Lumenad can help you manage and analyze all your marketing campaigns, all within a sleek and easy-to-use dashboard system.

Stats on Advertising Data Analytics from Forbes

Data Analytics In Advertising

What are the data analytics in advertising that marketers are most interested in tracking?

First, there’s ROAS or ROI. Return on Ad Spend and Return on Investment. There are also other key performance indicators such as clicks, traffic, views, and commitments.

Advertisers want to see how their money is performing. If their ROI is going down, they need to know. If their ROI is better on one campaign than another, they also need to know.

They also need to see what type of engagement they’re getting. If they’re getting a lot of traffic but not a lot of conversions, their marketing isn’t targeted correctly. If they’re getting a lot of views but no clicks, no one’s interested in their ads.

Ultimately, marketers want engagement. They want users engaging with their brand as much as possible. Tracking KPIs is only one way in which they can determine the best ways to get that engagement.

There are many online advertising data analytics tools. In some systems, you can even see what the weather was like when a user clicked a link. But deciding which ones are most relevant is up to the advertiser and their campaign.

Data Analytics In Marketing And Sales

What about data analytics in marketing and sales? Is data analytics important?

Marketing analytics tools and techniques are one of the most important components of sales. While marketing and sales are distinct, marketing is what gives the sales department its materials.

Without data analytics, marketing can’t tell sales which messaging is working. And sales needs to have the analytic data to tell marketing what trends they are seeing. Data flows both ways when it comes to marketing and sales.

Sales professionals are the ones on the ground. Marketing professionals are the ones who are building the overarching, consistent approach. Both need to be able to work together consistently if they’re going to get results. And the way that both will communicate with each other is through data.

If marketing teams and sales teams aren’t looking at the same data, there will also be misunderstandings, and it will be difficult for the organization to complete and follow a marketing strategy.

Data Analytics In Marketing Examples

What are some types of marketing analytics? What are some data analytics in marketing examples?

For marketers, one of the most common forms of data analytics is demographics. Data analytics might show, for instance:

  • Customers from 25 to 35 love the product.
  • Customers 45 to 55 love the product.
  • Customers 35 to 45 don’t buy the product.

But, think about this. It’s possible that the company is advertising on Instagram (younger) and on LinkedIn (older) but not on Facebook (between the two).

If marketers don’t pay attention to all their information, they can make incorrect assessments. In this situation, the demographic data could be skewed because those customers just aren’t being reached. To properly compare this, they would need to look at how many customers of each demographic are seeing the product vs. buying the product, not just how many of each demographic are buying the product.

Advertising Analytics Companies

Advertising analytics companies can help an organization track its analytics — without having to allocate an extraordinary amount of time to its marketing and sales teams. Analytics companies have advanced advertising data analytics tools that can be used to automate and improve the process of collecting and analyzing data.

But what should companies look for in an advertising analytics service?

Advertising analytics companies should be able to integrate with all the platforms the companies use. They should be able to collect and consolidate data from multiple channels. And they should be able to normalize this data automatically so the data can be readily compared.

Analytics companies should be able to provide readable, easy-to-use reports for the business. As much as possible should be automated rather than manual. And analytics companies should be responsive and communicative.

An advertising analytics company is a valuable partner. Companies should seek an organization that fits their mission and value statements, that gives them the direction and information that they need, and that provides for growth and scalability.