Web analytics tool refers to service that lets you monitor the traffic on your websites – all including information on a list of essentials that can help devise a favorable online marketing strategy. It is an effective means of measuring your business performance and the untapped potential of your web presence. With the help of the tool, you can gain more mileage out of your present online profiles and hence take necessary actions to maximize returns on your investments.

Companies use web analytics tools to monitor the visitors on their online profiles, including websites and accounts across social networking media sites like Twitter, Facebook, LinkedIn, MySpace, and so on. A good Web analytics tool thus enables you to measure the effectiveness of your online advertising campaigns beyond your websites and ad links. The tool organizes your web traffic and keyword statistics into graphs for easy viewing and comparison.

Web analytic tools implement log file analysis and page tagging system. Log file analysis is the method in which the tool analyzes the log file created by the server for all the data exchanges it makes. The other method uses tiny bits of java script codes that send data to analysis tools, whenever the webpage is being hosted by the server.

A good web analytics tool package lets you discern the behavior of all your unique visitors and monitor your site’s traffic on real-time basis. Selecting the right tool helps you track exactly what the visitors did on your website; what appealed to them more and which keywords brought them to your site/profile etc. Web analytic tools, if utilized optimally, can make sure that you stay ahead of competition and have a distinguished web presence.