However, it is not only web usage and online
sales which can be monitored, but other goals of a
web presence too. In this paper, therefore, web ana-
lytics is defined as the selection, definition, analysis
and evaluation of key performance indicators (KPIs)
and web metrics in order to verify the achievement
of website-based objectives.
2.2 Functionality of Web Analytics
Technically, in web analytics a distinction can be
made between five different approaches to collecting
data: the analysis of log files (server-side data col-
lection), page tagging (client-side data collection),
the use of packet sniffing, web beacons and reverse
proxies. The following paragraphs focus on log file
analysis and page tagging, as other methods are not
often used in research and business practice.
Server-side Data Collection. In this method, data
from log files are extracted and analyzed. Each time
a web page is loaded in a browser, data such as the
user’s IP address and the names of requested files is
saved with a time stamp in the log file of a web
server. The advantage of log file analysis is that all
requests and file downloads (text, PDF, picture or
video files) from a web server are logged. However,
one disadvantage of log file analysis is that traffic
on the site is not measured exactly because of the
caching in browsers and proxy servers. Additionally,
the requests from search engines, robots and craw-
lers distort the statistics. Moreover, visitors cannot
be identified distinctly, and user actions like mouse
clicks are not tracked either. Finally, the extraction,
preparation and analysis of log files can be complex
and time-consuming. Given these problems, log file
analysis has lost ground in recent years. Today, most
tools are using page tagging, or hybrid methods (us-
ing both server- and client-side data collection).
Client-side Data Collection. In this WA method, a
piece of JavaScript code is inserted in each HTML
page. If a page is loaded in the client’s browser, the
JavaScript is executed, a 1x1 pixel tag loaded, and
all data regarding the page view and the visitor’s
actions is transmitted to an internal or external track-
ing server. Using cookies, data about each user and
that user’s sessions are recorded.
Client-side WA solutions are mostly provided as
‘software as a service’ (SaaS) by application service
providers (ASP). They have many advantages: First,
all of the actions of each website user are recorded
in real time, i.e. all mouse clicks and all keyboard
entries. Technical information about users is cap-
tured too: the size, resolution and colors of the moni-
tor, type and language of the browser and operating
system, and all plug-ins installed. Second, there is no
caching in browsers or proxies, and the JavaScript is
not read by search engine crawlers and robots. Final-
ly, the tagging method can be implemented easily
and no IT specialists are needed. Despite data priva-
cy issues, the client-side data collection method has
become the standard method in web analytics.
2.3 Use of Web Analytics
The use of web analytics depends on the objectives
of a website. However, the main benefits are:
User and Customer Orientation. With WA the
tracking system reveals the information (pages, con-
tent, files) and services (searches, forms, blogs,
RSS) accessed by users. By analyzing information
demand, a high degree of user and customer orienta-
tion can be guaranteed, which is valuable for CRM.
Website Optimization. Based on an analysis of
each user’s information accessing behaviour, web-
sites can be adapted to their surfing, clicking, navi-
gation and search characteristics. Moreover, website
quality can be improved by testing and optimizing
the navigation, structure, links, functionality, usabili-
ty, design and content of the website.
Search Engine Optimization. WA is used to ana-
lyze and monitor search engine optimization (SEO)
and marketing (SEM). The goal of SEO and SEM is
to improve rankings in search engines, using certain
techniques. Web analytics tools reveal where users
are located (continent, country and place) and identi-
fy the search words used to find the web page.
Optimization of Online Marketing. Additionally,
WA can help to measure the effects of online mar-
keting instruments like banner advertisements, news-
letters, surveys and online campaigns.
Finally, WA facilitates rational decision-making,
and target- and performance-oriented management
of websites in order to improve e-business success.
2.4 Web Metrics
For WA, a number of metrics have been reported.
These are listed in Table 1 and appear in Figure 1.
The number of page views, visits, visitors and
the time on page are the standard metrics measured
by most tools and which have often been discussed
in the literature (see e.g. Sterne 2002, Peterson 2005,
Kaushik 2009). The main KPIs of web usage a
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