What Role Does Web Analytics Play?

Image courtesy of cooldesign at FreeDigitalPhotos.net

Image courtesy of cooldesign at FreeDigitalPhotos.net

       It goes without saying that many countries are experiencing a boom of Internet commerce. However, not all companies can say that they have successfully promoted their products and services on the Internet. Based on the opinions of Internet experts, “about 30% of sites are the result of unfortunate design decisions that make users uncomfortable in navigating through it. According to various studies only one out of five users makes a purchase online. Four out of five refuse to buy because of various disadvantages when using the site. In addition to that, the conversion rate is 55% in physical stores whereas this rate falls to 1.8% on the Internet for e-commerce websites. Generally speaking, there is room for improvement and web analytics can strongly assist with that” (Angwin, 2011).

 

          According to many conducted surveys, many private companies which have its own website are dissatisfied with it. The function of web analytics tools is to find out why the web sites are not working as intended. These tools allow companies to identify the main trends of interaction of the visitor with the website and to identify deficiencies in the work of website or in its individual elements. Web analytics provides valuable solutions that can be used to better evaluate how exactly the company’s website contributes to business goals, how the visitors are finding the website, how much time they are spending on the website and if they are converting. Effective web analytics is a detailed analysis of behavior and actions of the website visitors. Without knowing exactly what visitors are doing on the website, it is impossible to develop measures for its optimization. A web resource optimization is a necessary condition to adapt the site to the needs of its visitors.

 

       Secondly, web analytics allows to gauge the impact of the marketing campaigns. Web analytics provides the analysts with an ability to see how many clicks and interactions the ads received, more importantly, it concludes how the traffic generated from the ads interacts with the website which helps to properly evaluate the ad’s performance. It may sound impressive to receive 1,000 clicks on the ad, but if one doesn’t know if it affected the visitor’s behavior, if he/she proceeded to the website and converted, 1,000 clicks may not mean anything.  Web analytics enables optimization of marketing campaigns and can determine return on investment. By tracking different campaigns it is possible to demonstrate the success of the ads, compare performance of various campaigns, find weak spots and improve them. One of the examples would be the study that was conducted by James Cook University’s analysts: “More than 90 percent of people who have clicked on a JCU ad in Facebook had never been to the JCU website. Beyond this validation, the use of web analytics proved that a pay-per-click ad about affordability and financial aid was more successful in bringing quality traffic – e.g., visitors browsing the website beyond the ad landing page – than a more general branding pay-per-click ad” (Joly, 2012).

 

       For many marketers web analytics sounds very difficult, costly and time-consuming, but in fact it is not more than just a misleading impression about web analytics. If the company has concrete online marketing goals, then implementing web analytics is a very straightforward task which usually involves adding a script to the site and ads.

 

References:

 

Angwin, J. (2011, August 19). http://online.wsj.com/article/SB10001424053111903480904576508382675931492.html. Retrieved May 16, 2012, from www.online.wsj.com: http://online.wsj.com/article/SB10001424053111903480904576508382675931492.html

 

Joly, K. (2012, June). Embracing Web Analytics. University Business, pp. 29-30.

 

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