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Wether you are running a serious e-commerce site for living or you're a junkie for your blog you will find the new free service from Google a delight to use.
I have been using Statcounter for several months, but they only support sites with less than 9K page loads a day. I've been looking at Mint to replace Statcounter, but it doesn't have the graphical presentation I prefer. There are many open source solutions that one can install, but I didn't feel like spending time learning how to install and configure them. Luckily for us Google's new service outperforms them all in features and ease of use and installation.
Analytics has so many features that the average user will never use them all. If you're not into statistics, you'd have to rely on the comprehensive help to make sense of all the things that are available for you.

One of the most exciting part of Analytics, which is usually only available on professional services that cost hundreds of dollars is the conversion analysis. You can set-up so called goals for your website. For example if you run an online shop you may want to add the page that concludes the purchase as a goal for your website. Analytics will be able to track which activities bring you the most sales. Is it a certain keyword in Google? Is it a link from another site? Whatever the trigger — you may want to put more emphasis on developing that area of your operation.

What's in it for Google? Analytics is integrated with AdWords, Google's popular online advertising programme. Analytics helps webmasters fine tune their AdWords advertising campaigns, therefore increasing their returns on AdWords spending. Analytics gives more value for AdWords. For the rest of us not using Adwords, I guess Google expects us to return love for their free service.

It's Beta so you may expect changes in policies and operation. After you sign up you need to be patient. It took me almost 24 hours for the first results to appear after inserting the code into the pages.