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Conversion occurs when the visitors conducts a transaction (such as buying a product, registering for a newsletter, and so on). In the context of AdWords, conversion is the final step of a successful clickthrough. The conversion rate is the percentage of visitors that complete such a transaction, and is used to judge the effectiveness (and return on investment) of visitors acquired through campaigns such as pay per click . Effective conversion tracking requires web analytics tools which use of some scripting/cookies to track visitors actions within a website.
A file on the Web server that contains a record of every action the server has taken. Log files are analyzed in web analytics to determine the number of visits, the visitor's click path through the web site, and the number of pages that they view.
Analysis of web users behaviour at the web site in question. E-commerce sites use web analytics software to metrics on the user behaviour: visitors, unique visitors, origin of visitor traffic, what keywords they searched with on the site's search engine, lenght of visit. A more comprehensive view includes the assessment of a wider variety of data, including web traffic, web transactions, usability studies, user submitted information, and related sources to create a more comprehensive understanding of the visitor experience and behaviour. Web analytic software is used to monitor web site conversion and click through rates, i.e. whether pages are working properly. With this information, webmasters determine how to improve the site.
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