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UTM Tracking 101: How to Use UTM Parameters to Measure and Improve Campaign Performance
Not every underperforming campaign is a creative problem. More often than not, it’s a tracking problem.
You can have the most compelling ad copy, the perfect audience, and a flawless landing page, but if you can’t track where your traffic is coming from, it’s nearly impossible to measure what’s working (or fix what’s not).
That’s where UTM tracking comes in.
UTM parameters are simple, customizable codes you add to your URLs that give you crystal-clear visibility into how each campaign, channel, and creative is performing.
They’re one of the easiest yet most overlooked ways to improve ROI, optimize spend, and make smarter marketing decisions.
In this guide, we’ll cover:
- What UTM parameters are and how they work
- Step-by-step instructions for creating UTMs
- Common mistakes that can ruin your tracking efforts
- Best practices for clean, consistent data
- And a few advanced tips for automating and scaling your UTM strategy.
Let’s dive in.
What Are UTM Parameters?
UTM parameters (short for Urchin Tracking Module codes) are snippets of text added to the end of a URL.
These tags help marketers track the performance of specific campaigns by passing detailed information to analytics tools like Google Analytics.
Think of UTMs as a way to answer critical questions like: Which campaign drove this click? From which platform? Through which channel?
Each UTM-tagged URL can include up to five key parameters:
- Source (utm_source): Identifies where the traffic is coming from. This could be a platform, website, or newsletter. Example: utm_source=facebook
- Medium (utm_medium): Describes the type of channel used to deliver the traffic. Example: utm_medium=cpc (for paid ads) or utm_medium=email
- Campaign (utm_campaign): Specifies the name of the campaign or promotion. This helps differentiate between various campaigns running on the same platform. Example: utm_campaign=spring_sale
- Term (utm_term): Used for tracking specific paid search keywords. It’s especially useful for PPC campaigns. Example: utm_term=running+shoes
- Content (utm_content): Distinguishes between multiple links or creatives within the same campaign. Helpful for A/B testing ads or CTAs. Example: utm_content=cta_button vs. utm_content=text_link
When combined, these parameters give you a detailed view of where your traffic is coming from, how it’s interacting with your content, and which efforts are driving the best results.How Does UTM Tracking Work?
When someone clicks on a URL that includes UTM codes for marketing campaigns, those snippets of information are passed along to your analytics platform, like Google Analytics, Northbeam, or any CRM that tracks campaign attribution.
Still wondering how to use UTM tracking?
Here’s how it works in action:
- A user clicks on a UTM-tagged URL (e.g., from a Facebook ad or email campaign).
- The UTM parameters are sent along with the pageview when the landing page loads.
- Your analytics platform captures these parameters and attributes the visit, conversion, or action to the correct source, medium, and campaign.
- You can then analyze performance data by filtering traffic, leads, and conversions based on the UTM values.
This process allows you to:
- See which campaigns are driving the most traffic (UTM campaign tracking).
- Identify which platforms or channels are delivering high-quality leads.
- Measure conversion rates by campaign, source, or even specific ad creatives.
- Optimize marketing spend by doubling down on what’s working and cutting what’s not.
Without UTMs, you're often left guessing which campaign actually influenced a sale or lead.
With UTMs, you get clear UTM campaign tracking from the initial click to the final conversion.
Why Are UTMs Important?
In a world where marketers juggle multiple channels and campaigns, knowing what’s actually driving results is essential.
That’s where UTM tracking comes in. By tagging your URLs with UTMs, you gain the clarity and control needed to make smarter, data-driven decisions.
Here’s why UTMs are a must for any marketing strategy:
Accurate Attribution
UTMs provide a clear, detailed record of which campaign, channel, and creative drove each click, lead, or sale.
Instead of relying on vague platform reports or last-click attribution, UTMs help you trace performance back to its true source.
Budget Optimization
With accurate tracking, you can identify which campaigns are delivering the highest ROI — and which ones are wasting budget.
This allows you to shift spend toward top-performing channels and cut back on underperformers with confidence.
Better Reporting and Insights
UTMs unlock granular reporting capabilities: you can break down traffic, conversions, and customer behavior by source, medium, campaign, and even specific ad creatives.
This level of insight transforms vague analytics into actionable strategies.
In short: UTMs take the guesswork out of marketing performance and put you in control of your data.
How Do You Create UTM Parameters?
Creating UTM parameters is simple, but setting them up correctly ensures your data stays clean and meaningful.
Here’s a step-by-step guide for how to set up UTM parameters:
Step 1: Decide on a Consistent Tracking Structure
Before you start creating UTMs, establish standard naming conventions for your team.
Decide on lowercase vs. uppercase, set clear guidelines for campaign names, and document source and medium structures.
This consistency is key to clean reporting.
Step 2: Use a UTM Builder Tool
Google’s Campaign URL Builder is a free, easy way to generate UTM-tagged links.
Simply enter your destination URL and fill in the UTM fields: source, medium, campaign, and optionally, term and content.
Many marketing intelligence platforms also offer automated UTM builders.
Step 3: Append UTMs to Your Destination URLs
Once built, your UTM parameters will be appended to the end of your URL.
You can use these tagged URLs in ads, email links, social posts, or any campaign asset that drives traffic.
Step 4: Test URLs Before Launch
Always test your UTM links to ensure they direct to the correct page and that the parameters are registering in your analytics platform.
Click through each link and check your real-time reports to verify tracking is working as expected.
Common Mistakes With UTM Tracking
UTMs are simple, but it’s surprisingly easy to make mistakes that muddy your data and lead to inaccurate reporting.
Here are some of the most common UTM pitfalls, and how to avoid them:
Inconsistent Naming Conventions
Using variations like “Facebook” vs. “facebook” in your utm_source will split your analytics data into separate line items.
Always use lowercase, standardized naming to ensure consistent reporting across campaigns.
Forgetting to Use UTMs on All Campaigns
It’s common to tag paid ads but forget UTMs on organic social posts, email links, or affiliate promotions.
This creates blind spots in attribution.
Every campaign link, paid or organic, should include UTMs for accurate tracking.
Overcomplicating URLs With Unnecessary Tags
UTMs should be clear and purposeful.
Avoid cluttering URLs with redundant or overly detailed parameters that don’t contribute to meaningful reporting.
Instead, stick to essential tags (source, medium, campaign) and only use term or content when they add value.
Losing UTMs Due to Redirects
Some redirects or shortened URLs can strip out UTM parameters, breaking the tracking chain.
Always test redirect flows and ensure your UTMs are passed through correctly. (If you’re using link shorteners, check that they preserve UTM tags.)
What Are UTM Best Practices?
Getting the most out of UTM tracking requires more than just adding parameters to links. It’s about building a disciplined, consistent approach across your team.
Here are key UTM best practices to keep your UTM data clean and actionable:
Standardize Your Naming Conventions
Create a documented set of rules for how your team will name sources, mediums, campaigns, and other UTM components.
Consistency is critical to avoid fragmented data in your analytics reports.
Keep UTMs Lowercase and Simple
UTMs are case-sensitive, so always use lowercase to maintain uniformity.
Stick to clear, readable names (e.g., utm_source=facebook, not utm_source=Fb-Social-Ads).
Use UTMs Across All Campaigns
Apply UTM tags to every traffic-driving link — not just paid ads.
That includes organic social posts, email newsletters, partnerships, and influencer campaigns. The more comprehensive your tracking, the clearer your attribution.
Centralize Tracking in a Shared Spreadsheet or Tool
Build a master UTM tracking guide or spreadsheet (or use a tool like Northbeam) where all campaign links and naming conventions are documented.
This keeps your team aligned and avoids duplicates, inconsistencies, and confusion.
Use a UTM Naming Template or Checklist
To streamline your process, use a UTM naming template that lists approved sources, mediums, and campaign structures.
Here’s an example:
Advanced UTM Tips
Once you’ve mastered the basics, you can level up your UTM tracking with advanced techniques that streamline workflows and enhance attribution accuracy.
Here are a few strategies for more sophisticated tracking:
Dynamic UTMs for Large or Programmatic Campaigns
Manually creating UTMs for hundreds of ads isn’t scalable.
Use dynamic URL parameters in ad platforms to automatically populate UTM fields with relevant values like campaign names, ad sets, or creatives.
This ensures consistency while saving time.
Connecting UTMs with Your CRM or Attribution Platform
To get a full view of how UTM-tagged campaigns drive revenue, integrate UTM data into your CRM or advanced attribution tools.
This helps connect the dots between marketing efforts and actual customer actions, beyond just clicks and sessions.
Automating Tagging with Marketing Platforms
Platforms like HubSpot, Google Analytics 4 (GA4), and Northbeam offer automation features for UTM tagging.
These tools can auto-append UTMs to outbound links, reducing human error and ensuring consistent tracking across all campaigns.
Make UTMs Work For You
UTM codes for marketing campaigns might seem simple, but they’re one of the most powerful tools in a marketer’s toolkit.
With just a few snippets of code, you can transform vague traffic reports into actionable insights, optimize your campaign spend, and prove what’s really driving results.
When used consistently and strategically, UTMs unlock a clearer, more accurate view of your marketing performance, helping you shift from guessing to knowing.
What Is Data-Driven Marketing? A Complete Guide to Transforming Your Marketing Strategy with Data
The future may be uncertain, but one thing is not: we have more data at our fingertips than ever before.
And in this era of big data in marketing, how we market has fundamentally changed.
Sorry, Mad Men lovers: the days when marketing decisions were based entirely on intuitive assumptions or creative instincts is fading.
While creativity matters more now than ever before due to the mass proliferation of AI-generated campaigns, decisions in today’s competitive marketing environment have to be backed by cold, hard data.
This is reflected by the rise of data-driven marketing. Within this strategy, decisions must be driven first and foremost by data.
In this blog post, we’ll delve into what data-driven marketing is, why it matters, challenges and opportunities, and practical frameworks to implement data-driven marketing in your overall strategy.
What is data-driven marketing?
At its core, data-driven marketing is the approach of leveraging data to make marketing decisions and measure success.
Sounds simple, right?
But data-driven digital marketing goes beyond spreadsheets and platform data.
What we’re talking about is the distinction between setting a strategy and then using data to measure results, and looking at data at each step of the process.
With a data-driven approach, you would:
- Use data to establish a complete understanding of customer behavior, preferences, and pain points
- Use data to derive a strategy based on customer data points
- Use data to validate and refine your initial data-backed hypothesis
- Use data to measure and communicate results
- Repeat
‍A data-driven approach might take advantage of tools like customer segmentation, personalized campaigns, predictive analytics, A/B testing, and more.
The maxim that numbers don't lie has never been more true.
When marketing strategy is based on data rather than theories, you’re more likely to set yourself and your team up for success with each and every dollar.
And rather than eliminate room for experimentation, having a data-backed strategy lets you experiment within a more controlled environment, giving you a better shot at achieving your goals.
How does data-driven marketing compare to traditional marketing?
Traditional marketing was once ruled by gut instinct and broad messaging: marketers made big bets based on limited data, hoping their campaigns would stick.
But today, with a flood of customer data at our fingertips, modern marketing is far more precise.
Here’s how data-driven marketing stacks up against traditional methods:
Data-driven digital marketing isn’t just a modern upgrade, it’s a fundamental shift in how teams plan, execute, and evaluate campaigns.
By embracing data at every step, marketers can stop guessing and start growing with confidence.
Why does data-driven marketing matter?
In today’s competitive landscape, marketing can’t afford to be a guessing game. Data-driven strategies give teams the clarity they need to focus on what works, and cut what doesn’t.
By grounding decisions in real-time data, marketers can:
- Optimize ROI by allocating budget toward the channels, audiences, and creatives that actually drive revenue — not just clicks.
- Personalize experiences at scale, delivering relevant content based on user behavior, preferences, and intent.
- Measure success with precision, using attribution models and performance dashboards to tie every campaign to concrete outcomes.
Ultimately, data-driven marketing turns strategy into science, enabling smarter decisions, stronger results, and sustainable growth.
How is data-driven marketing used?
Data isn’t just for dashboards: it drives real decisions every day.
Here are five ways to put big data in marketing to work:
Customer segmentation → personalized campaigns
By analyzing behavior, purchase history, or engagement patterns, brands can create highly tailored messaging that resonates with specific audience segments.
Predictive analytics → demand forecasting
Machine learning models can anticipate future behavior, like when a customer is likely to purchase again, helping marketers plan inventory, timing, and spend more effectively.
Multi-touch attribution → smarter ROI tracking
Instead of giving all the credit to the last click, multi-touch models show how different channels work together, so you can allocate budget based on true performance.
Churn prediction → retention strategies
By flagging users at risk of dropping off, marketers can trigger win-back campaigns or special offers to re-engage them before it’s too late.
Creative performance analysis → content optimization
Data-driven A/B testing helps teams understand which images, headlines, or formats perform best, turning creative from a guess into a growth lever.
Data-driven marketing strategies across industries
While the principles of data-driven digital marketing stay consistent, the strategies look different depending on the industry.
Here’s how businesses are tailoring their approach, including data-driven marketing examples across e-commerce, B2B SaaS, Retail, Media & Publishing, and Finance & Insurance:
E-commerce
Brands use browsing behavior, purchase history, and abandoned cart data to deliver hyper-personalized product recommendations, email flows, and promotions.
B2B SaaS
Lead scoring models prioritize sales outreach based on engagement signals, helping teams focus on high-intent accounts and shorten the sales cycle.
Retail
In-store and online data is combined to create unified customer profiles, enabling loyalty programs, localized promotions, and smarter inventory planning.
Media & Publishing
Audience data informs content strategy, ad placements, and subscription offers, ensuring the right content reaches the right reader at the right time.
Finance & Insurance
Predictive analytics helps identify cross-sell and upsell opportunities, detect fraud, and customize offers based on life stage or risk profile.
No matter the vertical, one thing holds true: the more aligned your strategy is with your data, the better your outcomes will be.
How can you implement data-driven marketing?
Data-driven marketing is a cyclical process, not a one-and-done task.
To get the most value from your data, you need a structured approach that supports continuous learning and improvement.
Here’s a six-step framework to follow:
Step 1: Collect
Start by gathering first-party data from your website, CRM, email platform, and ad campaigns. Centralize it using tools like customer data platforms (CDPs) to build a unified view of your customers.
Step 2: Analyze
Use analytics tools (like Northbeam, Google Analytics, or BI platforms) to surface insights. Identify patterns in performance, behavior, and attribution that can inform smarter decisions.
Step 3: Strategize
Translate those insights into action. Adjust your targeting, messaging, and channel mix to align with what the data reveals about your most valuable audiences.
Step 4: Execute
Launch campaigns with clear hypotheses and measurable goals. Whether it's a new audience segment or a refreshed creative concept, treat execution as a testable experiment.
Step 5: Measure
Track performance in real time. Go beyond vanity metrics and measure what matters — conversions, LTV, CAC, and multi-touch attribution.
Step 6: Optimize
Use what you’ve learned to refine your approach. Iterate on campaigns, reallocate budget, and double down on what’s working. Then go back to Step 1 and do it better.
What are the benefits of data-driven marketing?
Data-driven marketing isn’t just a buzzword, it’s a smarter, more efficient way to grow.
Here’s how a data-centric approach pays off for modern marketing teams:
Optimized marketing spend
Stop wasting budget on campaigns that don’t convert.
With data-driven insights, you can focus your spend on the channels, audiences, and creatives that deliver the best return on investment.
Better personalization and targeting
Big data in marketing allows you to move beyond broad segments and craft personalized experiences that resonate.
From dynamic product recommendations to tailored email flows, personalization drives deeper engagement and higher conversions.
Improved decision-making backed by evidence
No more guesswork. If you’re wondering how to use data in marketing, lean on data-driven strategies to give you concrete evidence to support strategic decisions, whether it’s launching a new campaign, shifting budget, or testing creative variations.
Enhanced customer insights
Behavioral data reveals what your customers actually want, not just what you assume.
By understanding browsing patterns, purchase behaviors, and engagement signals, you can refine your messaging and product positioning.
Agile, real-time campaign adjustments
With the right tools, you can monitor performance in real time and pivot quickly.
Data-driven teams don’t have to wait for post-campaign reports — they adjust on the fly to maximize results.
Of course, harnessing data’s full potential comes with its own set of challenges, from data privacy concerns to the pitfalls of misinterpreting metrics.
Let’s look at the common obstacles that can trip up even the most data-driven teams so we can best learn how to use data in marketing.
What are the challenges of data-driven marketing?
While data-driven digital marketing unlocks huge opportunities, it’s not without hurdles.
Teams that dive in without a solid foundation can fall into these common traps:
Overreliance on platform-reported analytics
Relying solely on ad platforms’ metrics often paints an incomplete picture.
Without a multi-touch attribution model, it’s easy to over-credit last-click conversions and miss the bigger story of how channels work together to drive results.
Data privacy and compliance concerns
With regulations like GDPR and CCPA, marketers need to be hyper-aware of how they collect, store, and use customer data.
Mishandling sensitive information can lead to legal issues and erode customer trust.
Misinterpreting correlation as causation
Not every data trend signals a direct cause-and-effect relationship. Jumping to conclusions without proper analysis can lead to misguided strategies and wasted resources.
Human error in manual reporting
When teams rely on spreadsheets and manual data entry, mistakes are inevitable.
These errors can skew insights, misinform decisions, and slow down your ability to act on what’s working.
Despite these challenges, the future of data-driven marketing is more promising, and more powerful, than ever.
With advancements in AI, predictive analytics, and privacy-first technologies, the next wave of tools is reshaping how marketers turn data into results.
What are some future trends in data-driven marketing?
As technology evolves, so does the way marketers leverage data.
The next frontier of data-driven digital marketing is being shaped by smarter tools, stronger privacy regulations, and a shift toward predictive, proactive strategies.
Here’s what’s on the horizon:
AI and machine learning
AI is no longer a buzzword, it’s becoming the backbone of advanced marketing analytics.
Machine learning models can identify patterns at a scale no human could, enabling faster insights, automated optimizations, and even predictive content recommendations.
Marketing intelligence platforms
As data sources multiply, marketing intelligence platforms are emerging as the single source of truth.
Platforms like Northbeam integrate data across channels, visualize performance, and deliver actionable insights, helping teams align strategy, execution, and measurement in one place.
Predictive analytics for proactive decisions
Rather than reacting to past performance, marketers are starting to forecast future outcomes.
Predictive models help teams anticipate customer behavior, forecast demand, and allocate resources with greater confidence, leading to more strategic, data-backed decision-making.
Privacy-first data strategies
With third-party cookies on the decline and data privacy regulations tightening, marketers are shifting toward first-party data strategies.
Tools that respect user privacy while still delivering deep insights — like server-side tracking and consent-based data collection — will define the next era of responsible marketing.
Conclusion
Data-driven marketing isn’t about replacing creativity—it’s about giving it direction. When insight guides imagination, teams move faster, waste less, and build compounding advantage. Start with clean first-party data, align on the metrics that matter, and commit to a test-learn-optimize loop
Equip your team with an intelligence platform like Northbeam to unify data, attribute impact, and surface next steps. Most importantly, make decisions transparent and repeatable so wins can be scaled. The future will reward marketers who treat data as a product and learning as a habit.
Begin now, iterate relentlessly, and let results—not guesses—power your growth. Test boldly, measure clearly.
What Is ROAS? A Beginner’s Guide to Return on Ad Spend
Ever felt like you’re throwing money at ads and just hoping something sticks?
Without a clear picture of return on ad spend (ROAS), it’s hard to tell what’s working, and what’s just burning cash.
ROAS, or Return on Ad Spend, is a simple but powerful metric that shows how much revenue you earn for every dollar you spend on advertising.Â
Whether you're running Meta campaigns or multi-channel growth programs, ROAS helps you evaluate ad efficiency and make smarter budgeting decisions.
In this guide, we’ll break down exactly what ROAS is, how to calculate it, what a “good” ROAS looks like, and how to improve it.Â
We’ll also explore common mistakes marketers make when tracking ROAS, and how to avoid them.
What is ROAS, and how can you calculate it?
ROAS measures the revenue generated for every dollar spent.Â
It’s a straightforward metric that helps marketers understand whether their campaigns are profitable and which channels deliver the best results.
The ROAS formula is calculated simply as Revenue divided by Ad Spend:
ROAS = Revenue / Ad Spend
For example, if your Revenue is $10,000 and your Ad Spend is $2,500, your ROAS would be:
ROAS = $10,000 / $2,500 = 4.0.
In this example, your advertising ROAS is $4 in revenue for every $1 spent.
While calculating the ROAS formula is simple enough, it’s critical to ensure that you’re using the right inputs. Make sure to accurately determine your revenue during a specific period. This could include direct purchases, sign ups, or other types of conversions.Â
Then, make sure you’re accurately calculating ad spend. Add up all the costs associated with a given campaign, including media buys, creative production, and management fees.Â
Why does ROAS matter?
ROAS is one of the clearest indicators of whether your marketing dollars are actually delivering results.Â
Here’s why it matters:
- Profitability check: ROAS shows you whether your ad spend is generating more revenue than it costs. If you’re spending $2,500 and making $10,000, that’s a 4x ROAS — and a strong sign of profitability.
- Budget optimization: By comparing ROAS across different campaigns or channels, you can identify where to allocate more budget for maximum returns.
- Strategic decision-making: A high ROAS indicates profitable campaigns, while a low ROAS signals the need for optimization or a re-evaluation of your strategy.
- ROI proof: Tracking ROAS consistently helps you refine your approach, bring data to the conversation, and improve your overall advertising ROAS.
How and when is ROAS used?
In modern marketing, ROAS is more than a performance metric: it’s a decision-making tool.Â
Marketers use ROAS to evaluate campaign efficiency, shift spend to high-performing channels, and justify budget increases (or cuts) with real numbers.
Marketers use ROAS for:
- Channel planning: Comparing ROAS across platforms helps teams assess which channels are truly worth the investment. Paid search might drive conversions efficiently, while paid social delivers awareness but lower ROAS.
- In-flight optimization: Running Meta, Google, or TikTok ads? Marketers often monitor ROAS daily or weekly to reallocate spend in real time, turning down underperforming campaigns and doubling down on the winners.
- Post-campaign analysis: After a campaign ends, ROAS is a quick way to assess whether it met revenue expectations — and whether it’s worth repeating.
What is a good ROAS benchmark?
ROAS isn’t one-size-fits-all.Â
What qualifies as a good ROAS benchmark depends on your industry, business model, channel, margins, and sales cycle.Â
Here’s how different industries approach good ROAS benchmarks — and why their acceptable ranges vary.
Understanding where your business fits on the ROAS benchmark spectrum helps you set smarter performance targets and avoid apples-to-oranges comparisons.Â
Whether you’re aiming for a 4x return or making strategic bets on long-term value, ROAS is most powerful when used in context.
How can you best apply ROAS?
Knowing your return on ad spend is only half the battle: the real power comes from using it to guide your ROAS marketing strategy.Â
Track the Full Picture
To apply ROAS effectively, you need more than just ad spend and top-line revenue. True ROAS depends on accurate tracking of:
- All associated costs: including creative production, agency fees, platform commissions, and even fulfillment if relevant.
- Attribution data: so you know which clicks, impressions, or channels actually contributed to a sale.
Without clean attribution and comprehensive cost tracking, your ROAS may look better (or worse) than it really is, leading to poor decisions.
Automate with the Right Tools
Manual ROAS tracking is time-consuming and prone to error, especially if you’re running campaigns across multiple platforms like Meta, Google, TikTok, and email.
That’s where tools like Northbeam come in. Northbeam automates ROAS calculation using first-party data, cross-channel attribution, and full-funnel insights — helping you see exactly which ads are driving real revenue, not just clicks.Â
With better visibility, you can:
- Identify your most efficient campaigns
- Pinpoint low-performing spend
- Reinvest confidently for higher returns
What are some common ROAS mistakes and misconceptions?
ROAS is a powerful metric, but it’s only as accurate as the data behind it — and it doesn’t tell the whole story on its own.Â
‍To make smart, high-confidence decisions, avoid these common ROAS pitfalls:
Ignoring multitouch attribution
Many marketers rely on a single-touch attribution model, which gives full credit to the last ad a customer interacted with before converting.Â
But in reality, most customer journeys are multitouch, spanning multiple platforms and touchpoints.
If you ignore that complexity, you risk undervaluing top-of-funnel campaigns or key supporting channels.Â
Instead, advanced attribution models — like linear, time decay, or data-driven — offer a more holistic view.Â
Platforms like Northbeam make it easier to apply these models and accurately track ROAS across the full customer journey.
Over-focusing on ROAS
ROAS can show you whether an ad is generating revenue, but it doesn’t reveal whether those customers will stick around.Â
A campaign with a high ROAS might bring in low-quality, one-time buyers, while a campaign with lower immediate returns could be acquiring loyal, high-LTV customers.Â
‍That’s why it’s important to balance ROAS with other metrics like Customer Lifetime Value (CLV) and Customer Acquisition Cost (CAC) to get a more complete picture of marketing effectiveness.
Overlooking hidden costs
If you’re only factoring in platform spend and ignoring expenses like agency fees, creative production, influencer partnerships, or software tools, your ROAS calculations may be overly optimistic.Â
To get a true measure of profitability, make sure you’re including all relevant costs in your formula — not just what’s visible in your ad dashboard.
Confusing ROAS vs ROI
While they’re both return metrics, ROAS only measures the revenue generated per advertising dollar spent.Â
ROI, on the other hand, takes into account all costs, not just ad spend, and calculates net profit.Â
A campaign can have a high ROAS and still lose money from an ROI perspective once fixed and variable costs are factored in.
‍A clear, accurate understanding of ROAS, and an understanding of the difference between ROAS vs ROI, is essential for evaluating true business impact and long-term growth potential.
How can you improve ROAS?
Once you’re tracking ROAS accurately, the next step is to improve it.
‍Whether you're optimizing for efficiency or scaling what already works, here are five proven strategies that can help lift your return on ad spend.
1. Refine your targeting
Use detailed audience segmentation and lookalike modeling to reach people who are more likely to convert, not just click.Â
Smart targeting ensures your budget is going toward the audiences with the highest potential ROI.
2. Test your creative
A/B testing headlines, visuals, calls to action, and formats across platforms can lead to meaningful gains in conversion rates and ROAS.Â
Even small improvements in engagement or relevance can have a big impact when scaled.
3. Monitor channel performance
Continuously compare ROAS across channels and campaigns to identify what’s working.Â
Shift budget toward high-performing channels and pause or restructure underperformers to prevent wasted spend.
4. Focus on post-click
If your landing pages aren’t converting, even the best campaigns won’t deliver advertising ROAS.Â
Streamline your pages for speed, clarity, and ease of conversion — especially on mobile, where friction can quickly kill ROAS.
5. Track performance consistently
The best way to improve ROAS is to measure it often, and act on the insights.Â
With platforms like Northbeam, you can monitor ROAS in real time, identify patterns across the funnel, and make data-backed decisions with confidence.Â
ROAS in Action: MyHD
Learn how MyHD improved their ROAS by +84% with data-driven decision making, enabled by Northbeam.Â
MyHD DJ Store faced difficulty identifying which marketing channels delivered the best returns, leading to inefficiencies in ad spend.
​​Northbeam's platform provided MyHD with accurate, actionable insights by consolidating first-party data and offering advanced attribution models.
MyHD achieved an 84% improvement in blended ROAS, a 21% reduction in customer acquisition costs, and optimized marketing efficiency.
Make ROAS work for you
ROAS, or Return on Ad Spend, is one of the most critical metrics for understanding whether your marketing is truly working.Â
It helps you measure campaign efficiency, optimize budget allocation, and tie revenue back to ad spend.Â
By calculating ROAS accurately, comparing it to industry benchmarks, and applying smart optimization tactics, you can make more confident, data-driven decisions.
But tracking ROAS manually, especially across multiple channels and touchpoints, can be time-consuming and error-prone.
Explore how Northbeam provides real-time ROAS tracking, cross-channel attribution, and actionable insights that help marketers scale what works, and cut out what doesn’t.
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