Analyzing your web traffic statistics can be an invaluable tool for a number of different reasons. But you need to understand how to interpret the data.
Most web hosting companies will provide you with basic web traffic information that you then have to interpret and make pertinent use of. However, the data you receive from your host company can be overwhelming if you don't understand how to apply it to your particular business and website.
There is often a great misconception about what is commonly known as "hits" and what is really effective, quality traffic to your site. Hits simply means the number of information requests received by the server. If you think about the fact that a hit can simply equate to the number of graphics per page, you will get an idea of how overblown the concept of hits can be.
The aim is to use the web traffic statistics to figure out how well or how poorly your site is working for your visitors. One way to determine this is to find out how long on average your visitors spend on your site. If the time spent is relatively brief, it usually indicates an underlying problem.
It could be that your keywords are directing the wrong type of visitors to your website, or that your graphics are confusing or intimidating, causing the visitor to exit rapidly.
Additionally, web traffic stats can help you determine effective and ineffective areas of your website. These statistics will reveal vital information about the effectiveness of individual pages, and visitor habits and motivation. This is essential information to any successful Internet marketing campaign.