Marketing Analytics: What It Is, Why It's Important and More (2024)

Written by Coursera Staff • Updated on

Marketing analytics is a crucial way to develop stronger, more data-informed marketing strategies. Learn more about the tools and skills you'll need to know to work with marketing analytics.

Marketing Analytics: What It Is, Why It's Important and More (1)

The vast majority of businesses use data to make more informed decisions across a wide array of functions. Marketing analytics is part of that trend. It's the use of data to track different marketing initiatives to more clearly understand what's effective and what's not.

In this article, we'll dive deeper into marketing analytics, including the marketing analytics tools you'll likely need to work with and the various data-driven skills you can begin developing or strengthening to grow as a marketer.

What is marketing analytics?

Marketers who want to understand what works and why often employ marketing analytics, which refers to the collection and analysis of marketing-specific data.

Gathering data about marketing is an excellent way to understand the return on investment (ROI) of different campaigns, initiatives, and efforts, such as publishing a new blog post or monitoring the success of a revised email campaign. The data you gather from either scenario can help you determine whether it was successful enough to repeat—or should be adjusted in some way.

Marketing analytics often starts with collecting data such as:

  • Page views and bounce rate

  • Conversion rate

  • Email open rates and clickthrough rate (CTR)

  • Social media engagement

  • Mobile app use

  • Generated leads

Using marketing analytics to develop marketing strategies

After collecting data, it's important to identify any patterns the set may contain and use them to make data-driven decisions and refine your marketing strategy. Oftentimes, this requires being able to understand and interpret the data you've gathered, like knowing what an optimal bounce rate or clickthrough rate is.

There are three main marketing analytics models you can use to optimize your marketing efforts:

  • Descriptive models: Use data from prior campaigns to guide marketing decisions going forward.

  • Predictive models: Use data from prior campaigns to predict customer behavior.

  • Prescriptive models: Use data from all touchpoints and interactions to create better customer experiences.

Marketing analytics examples

Here are three real-world examples of marketing analytics models in action:

  • Descriptive: When you have limited marketing dollars in your budget, you can use marketing analytics to determine which campaigns have historically been the most successful and focus your remaining budget on top-performing efforts with a high ROI.

  • Predictive: When you want to make sure your email marketing is on-message, you can send two versions of a subject line to two subscriber groups, using the A/B testing feature in your marketing analytics software to discover the most open-worthy one.

  • Prescriptive: If you notice you have a low bounce rate across a series of blog posts on your company's website, that might suggest the content isn't meeting users' needs. You can use marketing analytics software to examine keyword trends, top SERP, and other content marketing analytics to plan a way to revise each post to better serve your users.

Read more: Understanding Different Types of Data

Marketing analytics vs. market analysis

Marketing analytics is different from market analysis, which is a detailed overview of a business' target market and potential customer base to better meet and serve their needs.

Marketing Analytics: What It Is, Why It's Important and More (2)

Because marketing analytics relies on the use of software to compile and organize data, you’ll need to become familiar with different marketing analytics tools and how they can improve marketing efforts.

Popular marketing analytics software includes:

  • Google Analytics: tracks and reports website traffic

  • Hubspot: measures the performance of all marketing campaigns

  • Sprout Social: manages, listens, and tracks social media engagement

  • SEMRush: tracks and measures content marketing efforts

  • Brandwatch: finds trends, gathers consumer insights, and tracks marketing campaign performance

  • Salesforce: marketing campaign performance across all channels

Read more: Google Analytics Certification: Benefits and How to Get It

Marketing analytics skills

Becoming familiar with the marketing analytics tools above will help you begin to develop crucial skills to work with marketing data and produce actionable insights to help your team—or your company—improve their impact.

You can also develop or strengthen technical skills in data analytics and SQL (a programming language used to manage relational databases), as well as workplace skills like communication and innovation, which are all top skills employers look for when it comes to marketing analytics, according to ZipRecruiter’s Career Keyword Mapper [1].

You may also want to hone the following skills, which can benefit your work in marketing analytics:

  • Building dashboards using marketing analytics software to track and display data

  • Sales forecasting

  • Branding

  • Conducting marketing research

  • Project management

  • Cleaning data

  • A/B testing

4 benefits of marketing analytics

Using data to bolster marketing decisions allows businesses to eliminate the guesswork or over-reliance on anecdotal evidence, and helps marketing teams make informed business decisions and improve customer relationship management. Here are four other benefits:

1. Get a complete view of all marketing activities.

Sometimes it can be hard to see the full picture across all marketing channels, such as paid digital ads, email, social media, and web. Data helps you track these components, understanding how they work independently and collectively.

2. Gain a better understanding of your customers.

Data can provide actionable answers about your customer base, including who they are, what actions they commonly take, what their pain points tend to be, and more. Data can help you understand what improvements your team can make to improve their experience.

3. Refine your marketing strategy.

Data tells you what works and why, so you can refine your marketing strategy in real time, replicating certain efforts because they're performing well and eliminating those that are under-delivering.

4. Predict the success of future marketing campaigns.

With predictive scoring based on past marketing campaigns, data can often predict how customers will respond to future campaigns and overall advertising and marketing efforts.

Learn more: B2B Marketing: Definition + Strategies

Build marketing analytics skills on Coursera

Enhance your skill set in marketing analytics by enrolling in a course or a professional certificate on Coursera.

In Meta's Marketing Analytics Professional Certificate, you'll learn how to collect, sort, evaluate, and visualize marketing data, design data experiments, and use Meta Ads Manager to optimize ad performance. Build in-demand skills and get job-ready in seven months or less.

Through Google's , you'll explore how to measure marketing performance through analytics, using digital marketing channels to attract and engage customers, and the process of building e-commerce stores.

Updated on

Written by:


Coursera Staff

Editorial Team

Coursera’s editorial team is comprised of highly experienced professional editors, writers, and fact...

This content has been made available for informational purposes only. Learners are advised to conduct additional research to ensure that courses and other credentials pursued meet their personal, professional, and financial goals.

Marketing Analytics: What It Is, Why It's Important and More (2024)


Marketing Analytics: What It Is, Why It's Important and More? ›

Refining Your Marketing Strategies

What is marketing analytics and why is it important? ›

Marketing analytics is the study of data to evaluate the performance of marketing activities. By applying technology and analytical processes to marketing-related data, businesses can understand what drives consumer actions, refine their marketing campaigns and optimize their return on investment.

Why is the marketing analyst so important? ›

Successful businesses depend on marketing analysts, sometimes called market research analysts, to use business analytics to track trends, identify opportunities, and determine what products people want, as well as who will buy them and at what price.

What are two goals of marketing analytics? ›

Final answer: The goals of marketing analytics are to maximize marketing effectiveness and optimize return on investment. Maximizing marketing effectiveness refers to optimizing marketing strategies and tactics, while optimizing return on investment means ensuring that every dollar spent contributes to revenue.

What is analytics and why is it important? ›

Analytics is the process of discovering, interpreting, and communicating significant patterns in data. . Quite simply, analytics helps us see insights and meaningful data that we might not otherwise detect.

How important is marketing analysis? ›

Marketing analysis is essential for improving a company's position within a specific market and being competitive and useful for customers. After an effective analysis, entrepreneurs receive valuable information about economic shifts, market trends, demographics, competitors, consumers' buying behavior, etc.

What is the goal of marketing analysis? ›

The aim of market analysis is to identify the most important characteristics of a market and to determine the market structure at a certain point in time. The market structure describes the structure of a certain market.

What is the 5 why analysis in marketing? ›

The Five Whys was originally built as an exercise that allows a team to identify the root cause of a problem. It works by starting with a problem, or symptom, and asking “why.” To each successive answer, the investigator asks “why” until you reach a total of five whys.

What is marketing analytics with an example? ›

Marketing analytics is the practice of managing and studying metrics data in order to determine the ROI of marketing efforts and identify opportunities for improvement. You may use marketing analytics to determine the success of: Calls-to-action (CTAs)

What is the primary objective of marketing analytics? ›

Here you have the 2 main purposes of marketing analytics: To gauge how well your marketing efforts are performing, measuring the effectiveness of your marketing activity. To determine what you can do differently to get better results across your marketing channels.

What are marketing analytics tools? ›

Marketing analytics tools are software solutions that allow companies to track, measure, and analyze their marketing performance. They offer a systematic way to evaluate the effectiveness of marketing activities and provide insights that help guide strategic decisions.

What is marketing analytics What are the advantages and disadvantages of marketing analytics? ›

Marketing analytics is a sophisticated process that empowers businesses of all sizes to make informed decisions, optimize marketing efforts, and predict future trends. This process hinges on three critical components: analytic models, and the integration of data from both offline and online sources.

Why is business analytics important in marketing? ›

In summary, business analysis is instrumental in marketing as it helps understand market trends, target the right audience, evaluate campaign performance, make data-driven decisions, identify competitive advantages, and enhance the overall customer experience.

Why are analytical skills important in marketing? ›

Analytical skills are the ability to collect, process, and interpret data to make informed decisions and solve problems. In marketing, analytical skills are essential for understanding customer behavior, measuring campaign performance, optimizing marketing strategies, and creating value for the business.

Top Articles
Latest Posts
Article information

Author: Otha Schamberger

Last Updated:

Views: 6146

Rating: 4.4 / 5 (75 voted)

Reviews: 82% of readers found this page helpful

Author information

Name: Otha Schamberger

Birthday: 1999-08-15

Address: Suite 490 606 Hammes Ferry, Carterhaven, IL 62290

Phone: +8557035444877

Job: Forward IT Agent

Hobby: Fishing, Flying, Jewelry making, Digital arts, Sand art, Parkour, tabletop games

Introduction: My name is Otha Schamberger, I am a vast, good, healthy, cheerful, energetic, gorgeous, magnificent person who loves writing and wants to share my knowledge and understanding with you.