The entire power of digital marketing for a business lies in the ability to measure and optimize the efforts and the results of the marketing activities. This is powered by Analytics. Web Analytics is the collection, measurement and reporting of data related to your digital marketing activities. This data is typically the information about the usage of the website hence the term Web Analytics is often used instead of just analytics but it can also be used for getting information from apps or point of sale devices.
There are two types of web analytics; off-site and on-site web analytics.
Off-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.
Tools like Alexa and Similar web fall into this category. Off-site web analytics tools are typically used to gain competitive intelligence and are just as important as On-site web analytics. Though off-site web analytics tools must be chosen wisely as the margin of error is high in data collection.
On-Site Web analytics:
As the name suggests, On-Site refers to the data being collected on your website, web log analysis or page tagging.
Web Log Analysis: The first and older method, server log file analysis, reads the logfiles in which the web server records file requests by browsers.
Web log analysis tools are no longer used, due to the evolution of web 2.0 and the developments that came with it. 99% of the on-site analytics tools use page tagging. Tools like Google Analytics, clickstream etc fall under the On-site web analytics tools.
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