What is Google Analytics?
Google Analytics, as the name suggests, is a powerful analytics tool that is designed to provide you with an in-depth look into the performance of your website, app, and digital advertising campaign. It can collect detailed analytics data for other Google platforms and products, including Google Ads, Data Studio, and Search Console.
If you want a more in-depth understanding of this topic, check out the FAQ section below:
Question #1: What types of analytics data does Google Analytics collect?
The types of analytics data that Google Analytics collects would ultimately depend on how you use the tool. For example, if you are using it to track the performance of your digital advertising campaign, then the data it would collect would include:
- Total number of impressions
- Total number of clicks
- Cost per click (CPC)
- Total conversions
- Demographics
Let us take a closer look at each one:
The total number of impressions refers to how many times your digital ad (or ads) were shown during the campaign’s lifetime.
The total number of clicks, as you may have already guessed, refers to the total number of times your ad (or ads) were clicked during the campaign’s lifetime.
CPC, as the name suggests, refers to how much each click costs. You can calculate it using the formula: total cost of ad campaign / total number of clicks. So, if, for example, you spend $1,000 on a digital advertising campaign and it gets a total of 2,000 clicks, using the formula above, your CPC would be $0.50 (i.e., $1,000 / 2,000 clicks).
Total conversions, on the other hand, refers to how many downloads, sign ups, purchases, or any other conversion event you defined happened during the lifetime of the campaign.
Finally, demographics data is just that: information about the people that clicked on your ad during the lifetime of the campaign, including things such as their age, gender, and country of residence.
Question #2: How can I use the data Google Analytics collects?
You can use the data Google Analytics collects to improve whatever you are using it for.
For example, if you are using it to run digital advertising campaigns, then you can use the insights the tool provides to continuously optimise each campaign for maximum ROI by making the necessary tweaks to things such as your targeting, budget, visuals, and messaging.
If you are using it to track the performance of your website, on the other hand, you can use the insights to tweak the design, layout, and copy of each page to increase traffic, reduce bounce rates, and improve conversions.
Question #3: How much does it cost?
Google Analytics is 100% free to use, but if you want more powerful advanced features, then you will have to upgrade to a Google Analytics 360 plan, which starts at $150,000 per year.
There is no need to worry, though. If you are running a small to medium-sized business, Google Analytics has everything you need and so much more. In fact, even if you run a big business, unless it actually requires more in-depth analytics data and advanced reporting, there is still no reason for you to upgrade.
Question #4: What are the benefits of using it?
The main benefit of using Google Analytics is that it provides you with valuable insights you can use to optimise your website, app, or digital advertising campaign for maximum ROI.
Question #5: What are the downsides of using Google Analytics?
The biggest downside of using Google Analytics is that it has a bit of a learning curve. Once you figure out how to use it, however, it can do wonders for your website, app, or digital advertising campaign.
But what if you do not have the time (or patience) to learn how to use it? Well, you can always just hire an expert to take care of it for you. After all, unless it is your core business, you should not focus too much on it anyway. You should just treat it as one of the many business tools at your disposal.