Web traffic is the big-key indicator you should monitor and track over time to give you a rough idea of how effective and efficient are your campaigns. This number should grow steadily over time; if it drops, it’s time to take a hard look at your marketing plans and strategies to identify the problems. You’ll want to look at variables such as how many pages a user visits, how long they stay on individual pages, and what they do on each page as this will help you develop marketing strategies and meet future needs, also important is their time spent on the site, the bounce rate, exit rate, cost per visitor and revenue per visitor. As important as the traffic is also the source of the traffic as this will enable you carry out an effective SWOT analysis.
Bank et al., (2011) state that higher web traffic reduces agency problems and leads to better performance. Web analytics is the measurement, collection, analysis and reporting of internet data for the purposes of understanding and optimizing web usage (the official DAA Definition of Web Analytics). Web analytics is not just a tool for measuring web traffic but can be used as a tool for business market research, and to access and improve the effectiveness of a web site.
Web analytics applications can also help companies measure the result of traditional print or broadcast advertising campaigns. It helps one estimate how traffic to a website changes after the launch of a new advertising campaign. Web analytics provides information about the number of visitors to a website and the number of page views. It helps gauge traffic and popularity trends which is useful for market research.
There are two categories of web analytics; off-site and on-site web analytics.
Off-site web analytics refers to web measurement and analysis regardless of whether you own or maintain a website. It includes the measurement of a website’s potential audience (opportunity), share of voice (Visibility), and buzz (comments) that is happening on the internet as a whole.
On-site web analytics measure a visitor’s behaviour once on your website. This includes its drivers and conversions; for example, the degree to which different landing pages are associated with online purchases.
On-site web analytics measures the performance of your website in a commercial context. This data Typically compared against key performance indicators for performance, and used to improve a web site or marketing campaign`s audience response.
Google Analytics is the most widely used on-site web analytics service; although new tools are emerging that provide additional layers of information, including hit maps and session replay, Clifton, Brian (2010).
Source: “Adoption of Internet and Web technology for Marketing Performance” By. Kosin Oghenekaro Edafe (Delta State University Research Project – March, 2014)