Digital Analytics in digital Marketing

Google Analytics for data- Conversion rate formula
Google Analytics for data analytics

What is digital/data Analytics?

Here is the brief intro that answers the question “What is data analytics?” and the below discussion will help you to understand about conversion rate formula

Digital analytics is the analysis of qualitative and quantitative data from your business. The competition to drive a continual improvement of the online experience that your customers and potential customers have which translates to your desired outcomes (both online and offline).” – Avinash Kaushik .

Avinash Kaushik is one the renowned person in the field of digital analytics. The key point from the excellent definition is, it’s all about the customers. Customer is the center point in digital analytics. We use sophisticated online tools to measure and improve customer experience which might have a positive impact on business on both online and offline front.

The need for digital Analytics

Digital Analytics can be used for many things. However, it’s mostly used in technology and internet. Since the inception of internet to now, digital analytics and internet has gone a long way.  One of the critical aspects of data analytics is data collection. It was built on the data. Without data, you don’t have anything to analysis.

Data collection is largest subset in digital analytics. You can collect data for various purposes such as business to business (or) business to customers. Usually data analytics involves collecting data from the websites, mobile applications, customer relationship management software ( CRM), point of sales, IOT devices, video games, smart appliances such as fridge, alexa , google chrome & cortona.

You can perform data analytics using various of self developed tools and out of box tools available in the market.

How data analytics is helping digital marketing

Understanding human (user) behavior

As humans we are unique in many ways. Each person differs and hence the online behavior with regards to visiting, revisiting & purchasing on digital assets. Because of that,more often than not, the actual behavior recorded online doesn’t make sense.

Consider a real life sample,

I woke up around 6 AM, the moment i turned on mobile phone. Then got a notification form a news website about a sensational news. While reading that for few seconds, i have realized that i’m running late. So i have bookmarked to read later and left the site. While on the commuting to work, I do a online windows shopping on certain items that i wanted to buy for a long time.

But, when i was about to pay, i had to move. So i pay more attention to road than the mobile phone. When done with work on evening, coming back to home, i read the bookmarked content piece on the morning. However forgot to check out the items added on the cart. In real world, it makes sense for humans.

However, for analytics software it doesn’t make sense. My morning actions, when seen on afternoon resulted in less average time. And then high bounce rate for the news website & abandoned cart for the eCommerce.

Which ultimately leads to..


Despite having massive amount of information about user behavior, ultimately your data analysis philosophy( context) determines the success of the data driven marketing. For example, someone new to the analytics would see the above examples as a very desirable outcomes for a website- if analyzed only the isolated behavior.

However, if a historical data of the above user had seen, it would show that they producing desirable outcomes in the returning visits.

What is data driven Marketing

Data driven marketing similar to data analytics uses the customer behavior information for optimising the marketing efforts. Which may include targeting the users in re-targeting based on data,creating an ad copy based on the data.

Data is the arsenal of any data driven marketer. You can create a profitable, scalable marketing campaigns if you put valuable information to use.

Tools on digital Analytics

Well for analytics, there are plenty of tools based on the domain and scope. For the scope of this digital marketing course ( interlink), let’s learn about the tools which could help you to make data driven decisions in digital marketing.

Google Analytics

Google analytics is probably most used analytics tool in digital marketing. It was launched in 2005 by google after acquiring urchin. Urchin initially developed google analytics, hence one of the module is named UTM (Urchin tracking module). With google analytics you can measure website/mobile app user behaviours (tons). It’s comes with free and premium versions with varying features.


Hotjar is analytics tools specializes in visual analytics as well as data analytics. This tool is widely used for (CRO) conversion rate optimisation which is also a sub part of data analytics. Unlike google analytics which only provides numerical data , hotjar provides visual data such as heatmaps, scrollmaps, user recordings, funnel view, etc.

Lucky orange

Lucky orange is an another tool which provides data analytics on conversion rate optimisation. With offerings similar to hotjar, it offers real time analytics of heatmaps, dynamic heatmaps. It uses all the data for sampling for analytics instead of limited sample.

How to setup?

Setting up google analytics for first time could be tedious.

However, you can follow three steps

  1. Initial Installation
  2. configuration of digital marketing goals
  3. Final testing on configuring

You can follow the detailed guide on how to setup google analytics.

Useful metrics in digital Marketing

Conversions or Convert:

Conversion is the completion of the action which you want the user to do. It could be anything for signup, purchase or download.

Conversion rate/ Conversion rate formula:
Conversion rate is , ratio of converted users to non- converted users , multiply by 100.

If the conversion rate is 2, out of 100 people 2 people converted. Below is the conversion rate formula

Conversion rate formula =  (number of converted users / number of non-converted users) * 100

conversion rate describes how good your marketing is at getting people to try to to what you would like them to try to to (we call this “converting” within the marketing world). Generally speaking, the upper your conversion rate, the higher your marketing is!

Click through rate

Clicks through rate is the ratio of number of users who clicked while seeing the ads to the users who didn’t click while seeing the ad.

CTR = Number of users who clicked the ad / number of users who didn’t clicked *100

Call to Action ( text)

Call to action text contains actions which advertiser want the user to do. Ex: Sign-up, download , buy etc.


Number of times the ad creative is shown

Ad inventory

Number of slots or impression or clicks available from a platform for the advertisers.

Warm Audience

Audience (people) who are already familiar with the brand & interacted with brand knows what brand offers.

Categorised as Tracking

By yathav

I'm very passionate about technology, marketing & analytics. Using WordPress and working on blogging & search engine optimization for almost 8+ years, I'd like to share my thoughts, hacks and best practices about what i do professionally & what I experience.

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