How to Create Content That Leads to Buyers | Ep 983
In this episode of The Game w/ Alex Hormozi, Hormozi addresses a critical mistake many content creators make: confusing high view counts with effective business outcomes. He explains that content strategy fundamentally differs depending on whether you're building a media business that monetizes through advertising or using content to drive direct sales. Through his own experiments, Hormozi demonstrates that videos generating record-breaking views often produce zero sales, while lower-view content targeting valuable audience segments drives significant revenue.
Hormozi introduces practical frameworks for creating what he calls "vertical value" content that serves audiences across all experience levels, and explains how to identify and target high-value customer segments rather than chasing maximum reach. He also covers the infrastructure needed to measure true revenue attribution through UTMs and strategic calls-to-action. This episode challenges conventional wisdom about content metrics and provides actionable strategies for creators focused on business results rather than vanity metrics.
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1-Page Summary
Media Business vs. Product Business Content Strategy
Content strategy fundamentally depends on whether a creator is building a media business or using media to sell products and services. These different models require distinct approaches to content creation and measurement.
Different Goals Need Tailored Content by Business Model
For media businesses that monetize through sponsorships and advertising, the goal is maximizing audience size, since advertisers typically pay based on views and reach rather than actual value delivered. However, most content creators are focused on driving direct business outcomes like generating leads or sales. For these creators, the strategy should prioritize delivering value to a highly targeted niche audience. For example, a woman with fewer than 6,000 Instagram followers made over a million dollars annually by focusing exclusively on registered dieticians looking to bill insurance more effectively.
Experience shows that trying to blend these approaches yields poor results. When one business shifted to broader, top-of-funnel content for a quarter, viewership records broke but actual business outcomes like book sales and quality leads declined. This highlights the importance of clarity: optimizing for reach can undermine business-focused content strategy, which relies on speaking directly to audiences likely to convert.
High-Revenue Content Performs Differently Than High-View Content
Alex Hormozi rigorously tests the relationship between high-view and high-revenue content, revealing why video strategies prioritizing view counts often fail to maximize business results.
Misalignment: High-View Videos Generate No Sales, Low-view Videos Drive Revenue
Hormozi describes experiments where his team produced broader content expecting larger audiences would mean more customers. The result was record-breaking views—ranging from 350,000 to 1.2 million—but key business indicators like book sales and leads all decreased. He notes that these most-viewed videos were beginner-oriented and "made no sales. Think about how wild that is. Zero, none."
In contrast, videos producing the most revenue had much lower views but targeted a smaller, valuable audience. His highest revenue-generating video had 270,000 views and covered advanced topics like customer segmentation. Other revenue-driving videos had only 100,000 to 250,000 views but accounted for the largest sales because they spoke directly to viewers with high buying power.
Hormozi cautions against using view counts as a primary metric, noting "the algorithm will give you the wrong signal for your business by telling you what the most people like, not what the most valuable people like." He highlights the "51 to one rule," illustrating how half an audience may possess only 2% of buying power while the other half holds 98%. Without proper focus, brands risk mistaking popularity for effectiveness.
Vertical Value: Serving Multiple Audiences Within One Video
Hormozi advocates for creating videos that provide value to people at all business stages, from beginners to those running nine-figure operations—a concept he calls "vertical value."
Effective Content Strategy Delivers Valuable Videos To Both Beginners and Advanced Practitioners
Rather than separating videos into top-of-funnel and specialized content, Hormozi recommends videos that both the business starter and the "hundred million dollar guy" can find valuable. He uses the example of content on "how the 1% actually think about money," which applies universally because the business principles discussed are relevant across experience levels. This approach excels because it delivers applicable insights to both new and advanced practitioners, maximizing usefulness and engagement.
Target High-Value Customer Segments Instead of Maximizing Reach
Focusing on high-value customer segments can dramatically increase revenue, even when overall audience size appears minimal.
Focus On Profitable Customer Segments to Enhance Business Results
To attract more buyers, analyze your top 20% of customers for common traits, challenges, and effective messaging. Use this data to shape content addressing problems most important to those with the largest purchasing power. Such specialized segments typically represent a small population but possess significant buying power. As Hormozi explains, a minority of your audience may control almost all your revenue—where 50% of your audience may have just $2 while the other 50% holds $98.
Counterintuitively, creators serving high-value segments often see falling view counts and stagnant subscriber growth. However, this isn't underperformance but a sign of serving a more valuable niche. Hormozi notes that videos with modest views—100,000 to 250,000—generated the most revenue despite not going viral. As he advises, "Do not think that when you get low views, you are somehow disserving your audience. You're serving a different audience."
Measuring Revenue Attribution Through Utms and Call-To-actions
To accurately measure business outcomes of video content, creators need infrastructure connecting video performance directly to transactions. A practical solution involves placing UTMs on links within video descriptions to track which specific videos led viewers to take measurable actions. Strategic call-to-actions within videos prompt viewers to take the next step, such as downloading a lead magnet or making a purchase. This backend tracking system allows creators to see precisely how video interactions translate into revenue, enabling them to base decisions on actual revenue attribution instead of superficial engagement signals.
1-Page Summary
Additional Materials
Clarifications
- A media business primarily earns revenue by attracting large audiences to sell advertising or sponsorships, focusing on broad appeal and high view counts. A product business uses content to directly promote and sell specific products or services, targeting a smaller, more defined audience likely to convert. Media businesses prioritize reach and engagement metrics, while product businesses prioritize content that drives measurable sales or leads. This fundamental difference shapes how content is created, targeted, and evaluated for success.
- "Top-of-funnel" content targets a broad audience to raise awareness and attract many viewers. It often covers general or beginner topics that appeal widely but may not address specific needs or buying intent. This can lead to high view counts but low conversion rates because viewers are less likely to take business actions like purchasing. Effective business outcomes usually require content tailored to a focused audience with clear interest or intent.
- UTMs are short text codes added to URLs to track the source and effectiveness of online marketing campaigns. They help identify which specific video or link drove traffic and conversions. Marketers use UTM data in analytics tools to measure user behavior and campaign ROI. This precise tracking enables better content and marketing decisions based on actual performance.
- The "51 to one rule" illustrates extreme imbalance in buying power within an audience. It means that just under half the audience controls nearly all the purchasing power, while the majority holds very little. This highlights why focusing on the smaller, wealthier segment is more profitable than chasing mass popularity. Ignoring this can lead to targeting many low-value viewers instead of fewer high-value customers.
- "Vertical value" means creating content that appeals to people at different experience levels within the same topic. It involves layering information so beginners grasp basic concepts while advanced users gain deeper insights. This approach maximizes audience engagement by addressing diverse needs in one piece. It also builds a broader, loyal audience without fragmenting content by skill level.
- High-view videos often attract a broad, general audience with casual interest, who are less likely to make purchases. Lower-view videos target a specific, niche audience with a strong need or intent to buy, increasing conversion rates. Advertisers and businesses value engaged viewers who fit their ideal customer profile over sheer numbers. Thus, relevance and intent matter more than total views for driving sales.
- In many markets, a small portion of customers—often around 20%—generate most of the revenue, a concept known as the Pareto Principle or 80/20 rule. Identifying this segment involves analyzing customer data to find common traits like demographics, purchasing behavior, or specific needs. Tools like customer surveys, sales records, and analytics help pinpoint who these high-value customers are. Focusing content and marketing on this group maximizes return on investment by addressing their unique challenges and preferences.
- View counts measure how many times content is watched but don’t show if viewers take valuable actions like buying. Revenue attribution tracks which specific content leads directly to sales or leads, showing true business impact. High views can indicate popularity but not profitability, while revenue attribution reveals content effectiveness in driving income. Prioritizing revenue attribution helps creators focus on content that generates real business results, not just attention.
- Call-to-actions (CTAs) are clear prompts within videos that guide viewers to take specific steps, such as visiting a website or signing up for a newsletter. Effective CTAs are concise, compelling, and aligned with the video's goal to encourage immediate viewer response. They often use action verbs like "download," "subscribe," or "buy now" to create urgency. Properly designed CTAs help link viewer engagement to measurable business outcomes by driving traffic and conversions.
- Niche targeting focuses on creating content for a specific, well-defined audience with particular needs or interests, increasing the likelihood of engagement and conversion. Maximizing reach aims to attract the largest possible audience, often sacrificing depth and relevance for broad appeal. Niche targeting typically results in fewer views but higher value interactions, while maximizing reach can generate many views with lower conversion rates. Choosing between them depends on whether the goal is direct business outcomes or broad brand awareness.
Counterarguments
- While niche targeting can drive higher conversion rates, maximizing reach can still be valuable for long-term brand awareness, organic growth, and future opportunities that may not be immediately measurable in direct sales.
- Some businesses, especially those with lower-priced or mass-market products, may require large audiences to achieve profitability, making reach a necessary metric.
- Blending media and product business strategies can be effective in certain contexts, such as when building trust and authority precedes direct selling, or when a brand’s goals include both awareness and conversion.
- High-view content can serve as a top-of-funnel tool, introducing new audiences to a brand and eventually nurturing them into high-value customers through retargeting and follow-up content.
- Algorithms and view counts, while imperfect, can provide useful feedback about content resonance and market demand, which can inform future content strategy.
- Serving both beginners and advanced practitioners in the same content may dilute the message or fail to fully satisfy either group, depending on the complexity of the topic.
- Revenue attribution through UTMs and call-to-actions, while valuable, may not capture the full customer journey, especially for high-consideration purchases or multi-touch sales cycles.
- Focusing exclusively on high-value segments may limit opportunities for innovation, community building, or discovering new profitable niches within a broader audience.
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Media Business vs. Product Business Content Strategy
Content strategy is shaped fundamentally by the business model a creator pursues. Whether one is building a media business or using media to sell products and services directly influences what metrics and outcomes matter most, and defines how content should be crafted.
Different Goals Need Tailored Content by Business Model
Media Business Monetizes Through Sponsorships and Advertising, Incentivizing Views and Reach Since Advertisers Price Based On Audience Size Rather Than Value
For those building a media business—such as creators who sell sponsorships and ad spots—the main objective is to attract a large audience. Advertisers typically pay based on audience size and views, not on the actual value delivered or conversions achieved. Since most advertisers don't know how to appropriately price media and simply use vanity metrics like views and reach, the media creator is incentivized to maximize these numbers to increase the perceived value for advertisers.
Business Content Should Prioritize High-Quality Leads Over Vanity Metrics
On the other hand, most people making content are not focused on building a pure media business. Instead, they are creating content as a way to drive direct business outcomes, such as generating leads or sales. The strategy for these creators should be to deliver value to a highly targeted niche audience, regardless of total follower count or surface engagement metrics. For example, a woman with fewer than 6,000 Instagram followers made over a million dollars a year by solely focusing on the niche segment of registered dieticians looking to bill insurance more effectively. Her posts might get few likes, but her entire audience is highly qualified and aligned with what she is selling.
Choosing Between Models Requires Clarity, as Optimizing For one Metric Can Harm the Other
Experience shows that trying to blend the two approaches can yield poor business results. For one quarter, a business shifted to producing broader, top-of-funnel content to attract more overall viewer ...
Here’s what you’ll find in our full summary
Media Business vs. Product Business Content Strategy
Additional Materials
Clarifications
- A media business primarily earns revenue by attracting a large audience and selling advertising or sponsorships based on that audience size. A product business uses content to directly promote and sell its own products or services to a targeted group of potential customers. The media business focuses on broad reach and visibility, while the product business prioritizes converting specific viewers into buyers or leads. This fundamental difference shapes how each creates and measures the success of their content.
- Vanity metrics are superficial numbers like views, likes, or follower counts that look impressive but don't directly measure business success. They are considered less valuable because they don't indicate real engagement, customer interest, or revenue generation. Relying on vanity metrics can mislead creators into focusing on popularity rather than meaningful outcomes. True value comes from metrics tied to conversions, sales, or qualified leads.
- Advertisers often use metrics like impressions or views to estimate how many people see their ads, assuming more viewers mean more potential customers. This approach simplifies pricing by focusing on quantity rather than the quality or engagement level of the audience. It ignores whether the audience is interested or likely to act on the ad, which can lead to paying for exposure without guaranteed results. As a result, ad prices are tied to audience size, not the actual business value generated.
- "Top-of-funnel content" refers to material designed to attract a wide audience at the initial stage of their customer journey. Its goal is to raise awareness and generate interest, often through broad, easily accessible topics. This content is less focused on immediate sales and more on building a large pool of potential leads. Later stages then nurture these leads toward conversion.
- Maximizing views and reach often attracts a broad, less targeted audience that may have little interest in the product or service offered. High view counts do not guarantee engagement or conversion into paying customers. Advertisers and businesses benefit more from audiences that are specifically interested and ready to act. Therefore, focusing solely on reach can lead to wasted resources without improving actual sales or leads.
- High-quality leads are potential customers who have a strong interest in and a high likelihood of purchasing a product or service. They are identified by specific traits or behaviors that match the business’s target market. General audience engagement includes any interaction like likes or comments, which may not translate into actual sales or meaningful business outcomes. Focusing on high-quality leads helps businesses invest resources efficiently by targeting those most likely to convert.
- A niche audience is a specific, well-defined group with particular interests or needs. Targeting this group allows content to be highly relevant and valuable, increasing the likelihood of engagement and conversion. It reduces competition by focusing on specialized topics rather than broad appeal. This precision helps build trust and authority within that segment, driving better business outcomes.
- Blending media and product bus ...
Counterarguments
- While advertisers often use vanity metrics, many sophisticated advertisers increasingly use performance-based models (e.g., affiliate, CPA, or conversion tracking) that reward actual business outcomes, not just reach.
- Blending media and product business strategies can be effective in some cases, especially for brands that use broad reach to build trust and awareness before targeting niche conversions.
- Large audiences can provide valuable data, feedback, and brand recognition that indirectly benefit product or service businesses, even if immediate conversions are not the primary metric.
- Some niche businesses benefit from broader reach to educate the market, create category awareness, or attract future customers who are not yet ready to buy.
- The dichotomy between "media business" and "product business" is sometimes overstated; many successful businesses operate hybrid models that leverage both ...
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High-Revenue Content Performs Differently Than High-View Content
Alex Hormozi rigorously tests the relationship between high-view and high-revenue content and outlines why video strategies that prioritize view counts often fail to maximize real business results.
Misalignment: High-View Videos Generate No Sales, Low-view Videos Drive Revenue
Hormozi describes two experiments where he and his team produced broader, top-of-funnel content with the expectation that bigger audiences would mean more customers. For one quarter, they focused on content aimed at attracting as many people as possible, believing the larger the net, the greater the absolute number of purchasers. The immediate result was record-breaking view statistics: millions of views across multiple videos—1.2 million, 1 million, 800,000, 500,000, and 350,000 views. However, despite these impressive vanity metrics, key business indicators like book sales, leads, and portfolio company applications all decreased during this period.
Top-performing Videos Reach a Broad Audience but Often Lack Specificity to Convert Viewers Into Customers
Hormozi explains that the most viewed videos tend to be beginner-oriented content. He notes that while these videos appeal widely and rack up the highest number of views, they consistently fail to generate sales, stating, “These are the most viewed videos. So what's interesting about these videos is they made no sales. Think about how wild that is. Zero, none." These videos lack the specificity required to address the needs of buyers who are ready and able to spend.
Advanced Video Strategies Target a Smaller, High-Value Audience
In contrast, the videos that produce the most revenue have much lower views but are highly targeted toward a smaller, valuable audience. For example, his highest revenue-generating video had 270,000 views and covered advanced topics like how to segment customers and where the real money is in business. This content is designed for business owners—specifically, those with established, often multimillion-dollar businesses, a demographic that represents a small fraction of the population. Hormozi estimates that only 9% of Americans own businesses at all, and this number shrinks even more when filtering for successful or large businesses.
Other revenue-driving videos, such as deep-dive episodes with multimillion-dollar companies, had comparatively modest views—sometimes only 100,000 to 250,000—but these accounted for the largest sales. These advanced videos speak directly to viewers with high buying power, generating more revenue per view than general interest content ever could.
Relying On View Counts As a Success Metric Is Misleading, as It Optimizes For Popularity Over Profitability, Creating False Signals About Content Effectiveness
Hormozi cautions against using view counts as a strategy’s primary metric. The algorithm rewards content tha ...
Here’s what you’ll find in our full summary
High-Revenue Content Performs Differently Than High-View Content
Additional Materials
Clarifications
- Alex Hormozi is an entrepreneur and author known for his expertise in business growth and marketing strategies. He has built and scaled multiple companies, focusing on helping businesses increase revenue through effective sales and marketing. His perspective matters because he bases his insights on real-world experiments and data from his own successful ventures. This practical experience gives credibility to his analysis of content performance and business outcomes.
- Top-of-funnel content refers to marketing materials designed to attract a wide audience at the beginning of the customer journey. Its goal is to raise awareness and generate interest, not to close sales immediately. This content is usually broad and educational, appealing to people who may not yet know they need the product or service. It contrasts with middle- and bottom-of-funnel content, which targets more engaged prospects closer to making a purchase.
- "Vanity metrics" are numbers that look impressive but don't directly contribute to business goals like revenue or customer growth. They often include views, likes, or followers that can be easily inflated without real engagement or sales impact. Relying on these metrics can mislead creators into thinking their content is successful when it isn't driving meaningful results. True success metrics focus on actions that lead to profit, such as conversions or purchases.
- The "51 to one rule" refers to the uneven distribution of purchasing power within an audience. It means that a small percentage of people hold the vast majority of the buying power, while the majority have very little. This concept highlights why targeting high-value customers is more profitable than chasing large but less affluent audiences. It emphasizes focusing on quality over quantity in marketing efforts.
- Beginner-oriented content attracts a wide audience, many of whom are not ready to make a purchase. These viewers often seek general knowledge rather than specific solutions or products. Because they lack immediate buying intent, they rarely convert into customers. Effective sales require addressing the precise needs of ready-to-buy individuals.
- Advanced topics in business content refer to specialized subjects that require prior knowledge or experience, such as customer segmentation, financial analysis, scaling strategies, and market positioning. These topics focus on optimizing business operations and increasing profitability rather than general advice. They target business owners or managers who already understand basic concepts and seek deeper insights. This content often involves data-driven decision-making and strategic planning.
- View counts measure how many times content is watched, reflecting popularity but not financial impact. Revenue measures the actual money earned from content, indicating business success. High views can come from casual viewers unlikely to buy, while lower views from targeted audiences can generate more sales. Thus, revenue better reflects content effectiveness for business goals than view counts.
- Algorithms prioritize content based on engagement metrics like views, likes, shares, and watch time to maximize user interaction. They use these signals to predict what content will keep viewers on the platform longer. Algorithms often favor broadly appealing content because it generates more immediate engagement from a larger audience. They do not inherently assess the purchasing intent or value of viewers, focusing instead on popularity indicators.
- Customer segmentation is the process of dividing a broad market into smaller groups based on shared characteristics like demographics, behavior, or needs. This allows businesses to tailor marketing and product offers to specific segments ...
Counterarguments
- High-view, broad content can play a crucial role in brand awareness and long-term audience building, which may indirectly lead to increased sales over time, even if immediate conversions are low.
- Beginner-oriented content can serve as an entry point for future high-value customers, nurturing them through the funnel until they are ready to purchase.
- Relying solely on advanced, niche content may limit growth potential and reduce opportunities to educate and convert new segments of the market.
- Algorithms and view counts, while imperfect, can provide valuable feedback on content resonance and help identify topics that engage audiences, which can be leveraged for retargeting or remarketing strategies.
- Some businesses, especially those with lower-priced or mass-market products, may benefit more from high-view, broad content than from ...
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Vertical Value: Serving Multiple Audiences Within one Video
Hormozi advocates for creating videos that provide value to people at all stages of business, from complete beginners to those running nine-figure operations. He emphasizes that effective content should not be limited to a particular audience segment, such as only early-stage entrepreneurs or only advanced practitioners, but should deliver meaningful insights across the spectrum—a concept he calls "vertical value."
Effective Content Strategy Delivers Valuable Videos To Both Beginners and Advanced Practitioners, Avoiding Segmented Top-of-funnel and Bottom-Of-funnel Content
Hormozi explains that traditional content strategies often separate videos into top-of-funnel, broadly targeted content meant to attract large audiences, and specialized content exclusively for high-level practitioners or those “making over a certain amount.” However, he advises against relying solely on either approach. Instead, he recommends videos that both the business starter and the “hundred million dollar guy” can find valuable.
Insightful Videos on Universal Business Principles Benefit Both Startups and Nine-Figure Operations
He uses the example of a video on "how the 1% actually think about money." Such content is applicable to people who are already successful as well as to those who are just starting out, because the business principles discussed are universal. Hormozi notes that even videos that seem more niche—like a straight Q&A for service businesses—have proven valuable, generating significant revenue regardless of their overall view count, underscoring the importance of value over broad targeting.
...
Here’s what you’ll find in our full summary
Vertical Value: Serving Multiple Audiences Within one Video
Additional Materials
Counterarguments
- Creating content that appeals to both beginners and advanced practitioners may result in videos that are too generic or lack the depth needed for experts, while still being too complex for novices.
- Audience segmentation allows for more targeted messaging, which can increase relevance and conversion rates for specific groups.
- Specialized content can foster a stronger sense of community and loyalty among niche audiences who feel their unique needs are being addressed.
- Top-of-funnel content is effective for brand awareness and audience growth, which may be diluted if every video tries to serve all audience levels.
- Universal business principles may be interpreted differently depending on the stage of bus ...
Actionables
- you can create a running list of business challenges or questions you’ve faced at different stages and brainstorm how a single principle or lesson could address each one, helping you craft content or advice that’s relevant to both beginners and advanced practitioners; for example, take a concept like resource allocation and jot down how it applies to launching a side hustle, scaling a team, and optimizing a large company’s budget.
- a practical way to ensure your content resonates with a wide range of business experience is to ask friends or colleagues at various stages of their business journey to review your draft content and highlight what’s useful or confusing for them, then revise your material so each group finds clear, actionable ...
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Target High-Value Customer Segments Instead of Maximizing Reach
Focusing on high-value customer segments can dramatically increase revenue, even when overall audience size or engagement appears minimal. The priority is not broad exposure, but targeting individuals who are likely to yield the highest return for the business.
Focus On Profitable Customer Segments to Enhance Business Results
Identifying Valuable Customers: Analyze Top 20% of Buyers, Note Common Traits, Issues, and Effective Messaging
To attract more buyers through your content, it’s essential to understand precisely who your buyers are. Start by analyzing your existing customer base, specifically the top 20% of spenders. Look for common factors among these high-value customers, such as their backgrounds, challenges, and the specific messages or problems that most resonated with them. Use this data to shape your content strategy, so your messaging and topics solve the problems most important to those with the largest purchasing power.
For example, a case was observed where a creator had fewer than 6,000 Instagram followers and consistently received only nine to twenty likes per post—engagement rates that would appear unsuccessful by traditional social media standards. Despite this, she generated over a million dollars annually by catering exclusively to registered dieticians seeking to improve insurance billing. Her audience, while small, was intensely targeted and consisted almost entirely of registered dieticians with a high willingness to pay for specialized content.
High-Value Customer Traits Enable Content Targeting Affluent Segment Challenges and Opportunities; Small Population, Large Purchasing Power
Such highly specialized segments typically represent a small fraction of the population but possess significant buying power. For instance, business-focused content by its nature attracts a limited audience, as only around 9% of the U.S. population owns a business, and an even smaller subset has businesses generating substantial revenue. Content that addresses the nuanced needs of these higher-earning businesses will naturally serve a limited audience, but these viewers control a disproportionate share of spending. As Hormozi explains, a minority of your audience may control almost all your revenue—a scenario where, for example, 50% of your audience may cumulatively have just $2, while the other 50% holds $98.
The key advantage is being able to craft messaging for the exact pain points, challenges, and aspirations of this affluent population. Whether it’s producing videos aimed at established business owners or developing deeply niche content for registered dieticians, the result is a small yet highly profitable customer base.
Paradox: Lower View Counts and Subscriber Growth, yet Higher Revenue
Counterintuitively, creators who cater to high-value segments often notice falling view counts and stagnant subscriber growth. However, this is no ...
Here’s what you’ll find in our full summary
Target High-Value Customer Segments Instead of Maximizing Reach
Additional Materials
Counterarguments
- Focusing exclusively on high-value customer segments can limit brand awareness and long-term growth opportunities, as broader audiences may include future high-value customers who are currently undiscovered.
- Over-targeting affluent or niche segments may make a business vulnerable to market shifts or economic downturns that disproportionately affect those segments.
- Relying on a small, specialized audience can increase business risk if those customers’ needs or preferences change, leading to significant revenue loss.
- Some products or services benefit from network effects or social proof, which require broader reach and higher engagement metrics to succeed.
- Maximizing reach can be important for new brands or products that need to build trust, credibility, and recognition before targeting high-value segments.
- High-value customers may already be saturated with targeted offers, making it more difficult and expensive to acquire or retain them compared to broader audiences.
- Focusing on a narrow segment may stifle innov ...
Actionables
- you can create a simple spreadsheet to track which customers or clients have spent the most with you over the past year, then jot down what you know about their preferences, industries, and buying habits to spot patterns you can use in future interactions or offers
- (for example, if you notice your top spenders all request fast turnaround, you might offer a premium rush service just for them)
- a practical way to tailor your communication is to draft two versions of your next email or message: one for your general audience and one specifically for your highest-value contacts, focusing on their unique needs or goals, then compare responses to see which approach gets better engagement or results
- (for instance, you might highlight exclusive benefits or address a challenge only your top clients face in t ...
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Measuring Revenue Attribution Through Utms and Call-To-actions
Tracking Revenue-Driving Content Requires Infrastructure Connecting Video Performance To Transactions, Not Just Engagement Metrics
To accurately measure the business outcomes of video content, relying on engagement metrics alone is insufficient. What’s necessary is an infrastructure that connects video performance directly to transactions.
Trackable Utm Parameters in Video Descriptions Reveal Video Conversions
A practical solution involves placing UTMs on links within video descriptions. By including UTMs—unique tags appended to URLs—creators can track which specific video led viewers to take a measurable action. This allows visibility into which videos are converting passive viewers into active customers.
Strategic Ctas in Videos Drive Actions Like Downloads or Purchases, While Utm Tracking Measures Content's Business Outcomes
Strategically crafted call-to-actions (CTAs) within the videos prompt viewers to take the next step, such as downloading a lead magnet or making a purchase. For example, a video might present a free 10-stage business roadmap and direct viewers to visit a specific URL provided in the description. The CTA encourages engagement, while the UTM-embedded link tracks user follow-through, recording which video drove the audience to submit their information and claim the offer.
Backend System Reveals True Revenue, E ...
Here’s what you’ll find in our full summary
Measuring Revenue Attribution Through Utms and Call-To-actions
Additional Materials
Clarifications
- UTM parameters are short text codes added to the end of a URL to track the source and details of web traffic. They help marketers identify which campaigns, platforms, or content pieces bring visitors to a website. These parameters are read by analytics tools like Google Analytics to attribute user actions to specific marketing efforts. This data enables precise measurement of campaign effectiveness and return on investment.
- UTM parameters are created by adding specific tags to the end of a URL to track the source, medium, and campaign name. These tags use key-value pairs, such as utmsource=facebook or utmcampaign=spring_sale. You can generate UTM URLs manually or use online tools like Google’s Campaign URL Builder. When users click the tagged URL, analytics platforms capture these parameters to attribute traffic and conversions accurately.
- Call-to-actions (CTAs) are prompts that encourage viewers to take a specific action, such as clicking a link or making a purchase. Effective CTAs are clear, concise, and create a sense of urgency or value, like "Download your free guide now" or "Subscribe today for exclusive tips." They guide the audience toward the next step in the customer journey. Well-designed CTAs improve conversion rates by making it easy and appealing for viewers to respond.
- Engagement metrics measure how users interact with content, such as views, likes, comments, and shares. Transaction-based metrics track actual business outcomes, like purchases, sign-ups, or downloads resulting from the content. Engagement shows interest or attention, while transactions show completed actions that generate revenue. Businesses prioritize transaction metrics to assess real financial impact.
- Video performance connects to transactions by embedding unique tracking codes (UTMs) in links associated with each video. When viewers click these links and complete a purchase or sign-up, the system records which video led to that action. This data is then linked back to the video’s analytics, showing direct revenue impact. Thus, creators can see exactly how many sales or leads each video generates.
- A backend system refers to the software and databases running behind the scenes that collect, process, and store data from user interactions. It integrates tracking information, like UTM parameters, with sales or transaction records to link content engagement to revenue. This system often includes analytics tools and dashboards for creators to analyze performance. It operates separately from the user-facing parts of a website or app.
- Revenue attribution in digital marketing assigns credit to specific marketing efforts that lead to sales or conversions. It uses data from tracking tools like UTMs, cookies, and analytics platforms to link customer actions back to marketing touchpoints. Different models (e.g., first-click, last-click, multi-touch) determine how credit is distributed across these touchpoints. This helps marketers understand which channels and co ...
Counterarguments
- UTM parameters can be manipulated or shared outside their original context, potentially leading to inaccurate attribution of conversions.
- Not all conversions or revenue can be directly attributed to a single video or CTA, as customers often interact with multiple touchpoints before making a purchase.
- Some audiences may be less likely to click on links in video descriptions, limiting the effectiveness of UTM tracking for certain demographics or platforms.
- Overemphasis on revenue attribution may undervalue brand awareness, educational content, or long-term relationship-building that does not result in immediate transactions.
- Privacy regulations and browser restrictions (such as cookie limitations or tracking prevention) can hinder the accuracy of UTM-based track ...
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1-Page Summary- Media Business vs. Product Business Content Strategy
- High-Revenue Content Performs Differently Than High-View Content
- Vertical Value: Serving Multiple Audiences Within one Video
- Target High-Value Customer Segments Instead of Maximizing Reach
- Measuring Revenue Attribution Through Utms and Call-To-actions
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