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The Referring Sites Report in Google Analytics: Know the Value of Websites Linking to You

September 28, 2007 By Glenn Gabe

Which referring sites provide you the most value?I truly enjoy speaking with people about web marketing. Actually, some will say that you can’t shut me up! I had a great conversation with a marketing manager the other day about sources of revenue for a website. He wasn’t extremely familiar with how web analytics packages work, so I was explaining how you can find out which referring sites are the most valuable to your business. The conversation took off (I could literally see a light bulb going on above his head) so I pulled out my laptop and started showing off some of the functionality in Google Analytics. Based on that conversation, it hit me that a blog post detailing the Referring Sites report in Google Analytics would be a good idea. And here it is!

What’s a Referring Site?
The definition of a referring site is any website (blog, forum, affiliate, etc.) that sends visitors to your website. That may be a bit vague, so let me expand on that definition. In most web analytics packages, traffic is broken down by referring sites, search engine traffic, and direct traffic. These are the most basic sources of traffic for your website. Back to referring sites, so a blog post that mentions your product, a social media site with a link to your website, and a link from an affiliate website are all examples of a referring site. The beautiful part about the top web analytics packages is that they all provide detailed reporting for referring websites. As you know from previous posts, I’m a big advocate of both Coremetrics and Google Analytics, but this post just focuses on the referring sites report in the latest version of Google Analytics.

So What Can You See in the Referring Sites Report?
Plenty. Let’s start with the top level referring sites report. As usual in Google Analytics (GA), you can view trending at the top of the report with the list of referring sites at the bottom of the report. You can view a summary of the data you’re analyzing right below the trending and you can easily view the referring sites data by Site Usage, Goal Conversion, and E-commerce. By the way, GA has one of the most intuitive user interfaces among the most popular web analytics packages. Under Site Usage, you can see statistics such as Visits, Average Time on Site, and Bounce Rate, which provides a great starting point. In addition, Google Analytics enables you to visit the referring site right from the report (in a new window). I love this feature for when I see a new referring site show up and I’m not familiar with the website in question. At the top level of this report, you can also click Goal Conversion to see the conversion rate for all of your events, again, broken down by referring site. So, you can see Ecommerce conversion rate, RSS subscriptions, newsletter registrations, etc. for each referring site in your report. Last, but definitely not least, you can click the E-Commerce tab to see revenue by referring site. In addition, GA enables you to segment your data with a quick dropdown labeled “Segment”. I’ll cover this later, but as an example, you can click the segment dropdown and choose “Landing Page” to see the top landing pages that people visit from your referring sites.

Screenshot of the Referring Sites Report in Google Analytics:
–Note, these are just sample screenshots. They don’t match the examples.–
The Referring Sites Report in Google Analytics

So in just minutes, you were able to see your top referring sites by visitors, goal conversion, and revenue. Now, isn’t this a great way to determine the value of a site linking to you? Imagine this…a website you just recently advertised with said, “We sent 14,000 visitors your way last week. Isn’t that outstanding?” Well sure, but it looks like 60% of those visitors bounced, only 3% signed up for our newsletter, and those 14,000 visitors only generated $400 in revenue. It’s powerful to have that data. :-)

Drill Into Your Referring Sites Report
Now many of you might be excited about what I just explained above. But why stop there? {OK, I don’t mean to sound like a late night tv commercial for the craftmatic bed!} Let’s go one layer deeper into the referring sites report. I’ll click one of the top referring sites in the report. By clicking the site, you are now telling Google Analytics to focus on this one site and give you more data about this referring site. Once in the report, you will see trending again up top, which is a great way to see data over time for this specific website. For example, you might see a spike in activity, a gradual trend upwards or downwards… Also notice that GA provides the same report layout, keeping it consistent while you analyze different activities. This makes it very easy to find what you’re looking for and to become extremely proficient at finding the data you need. You’ll notice the segment dropdown again, this time set to Referral Path, which is the actual path from within the referring website (where visitors actually came from.) This is outstanding because you can now find the exact location on the site that people are finding your link or advertisement. I can’t tell you how many times a new referring site pops up, and I immediately want to see the actual page where the link resides. Was it a blog post, a mention on a forum, one of our ads, etc? GA enables you to view the URL in a new window right from the reporting.

Screenshot of a Specific Referring Site in Google Analytics:

A Specific Referring Site in Google Analytics

So now we are getting more granular. At the top level, you knew that x amount of visitors came from the website. Now you can see x number of URL’s within the referring site that drove visitors to your website. And, you can easily click each tab like we did earlier to view each URL by Site Usage, Goal Conversion, and E-commerce. In addition, you can use the “Segment” dropdown to segment your data. For example, you can choose Landing Page to see which pages on your website visitors are landing on, you can click City or Region to see where they are geographically located, or you can click User Defined if you set up any custom segmentation. For example, you might have set up a segment for blog traffic. If you click User Defined, you would be able to view statistics based on people coming from this referring site, but that also that visited your blog.

Yes, Drill Into Your Reporting Even Further…
Why stop at the previous step? If you click one of the URL’s within your referring site report, you can view statistics for that one URL. You are telling GA to just give you data for that one URL and not the entire referring site. In this report, you can view trending up top for the URL in question (again, not for the entire site, just the URL). You can visit that URL in a new window, you can segment your data via the Segment dropdown, and you can view a summary of statistics at the bottom of the report. And once again, you can click each tab to view Site Usage, Goal Conversion, and E-Commerce for that one URL. Nice.

Screenshot of a Specific Link (URL) in the Referring Sites Report:

A Specific Link or URL in Google Analytics

How About a Hypothetical Referring Sites Example?
You launched a big campaign last week. There are 2 sites in particular that you want to compare. Both are vying for your long-term business, so this is a test for each of them. You are running advertising on both sites in various locations. Both sites show up in your referring sites report. Great. Let’s take a closer look.

Each site sent ~8,000 visitors your way. Immediately you see that 1 site had a 55% bounce rate and the other had a 10% bounce rate. Interesting. You click Goal Conversion and see that the first site (with a high bounce rate) had a 2% conversion rate and the second site with a 10% bounce rate had an 8% conversion rate. Your case is getting stronger for site #2, right? Let’s drill deeper into site #2. You see 4 URL’s from this referring site that drove visitors to your site. The trending (up top) shows a downward trend from the day it launched through yesterday. What’s the reason? The most popular link was on their blog, which based on new content being added daily to the blog, the post mentioning your site drops down the blog homepage and eventually off of the homepage. You still get traffic, but not as much. Bookmark that in your mind for future campaigns. Maybe you should focus your efforts on more blog related content versus other efforts. You check revenue by URL, which backs up the mention in the blog post. It sent the most traffic and revenue your way. Let’s pop back out and check the first site (the one with a high bounce rate and lower conversion rate). You are now viewing the referring site by URL. Most of the visitors came through the homepage advertisement, but that also had the highest bounce rate. Was it the creative? Or, since visitors that arrived from links deeper in the site stayed longer and converted at a higher rate, does that reflect a more valuable type of visitor? For example, are you getting more value from deeper site advertising? Sure, it won’t send you as much traffic, but you want a high return on investment (ROI), which means revenue. Traffic is good, but not if 55% of it bounces.

We can keep going, but I’ll stop my hypothetical analysis here! I hope you can see how powerful this set of reports can be for determining high quality traffic. And “High Quality” can be determined by you, and not the people sending you the traffic. ;-) What gets me even more excited is that web analytics packages are only getting stronger. You will be able to do more and more as the popular analytics packages evolve. Stay tuned for more posts about other web analytics reporting. I know that there’s a lot to cover, so subscribe to my feed and keep up to date on my latest posts.

GG

Filed Under: ecommerce, google-analytics, web-analytics

Bounce Rate and Exit Rate, What is the Difference and Why You Should Care

August 8, 2007 By Glenn Gabe

The Difference Between Bounce Rate and Exit Rate in Web AnalyticsOver the past year, I’ve received more and more questions about two important metrics in web marketing, Bounce Rate and Exit Rate. It seems there is some confusion about differences between the two, why they are important, what they tell you, and how to improve them. So, I decided to write this post to demystify them a bit.

The Definition of Bounce Rate and Exit Rate
Let’s start with some definitions. The definition of Bounce Rate is the percentage of visitors that hit your website on a given page and don’t visit any other pages on your site. For example, John views an organic search listing, clicks through to your site, and then leaves your site without visiting any other pages. He bounced. You can learn more about lowering your bounce rate here.

Note: If you’re a small business looking to learn more about web analytics, then you should check out my internet marketing ebook, Taking Control of Your Online Marketing. There’s an entire chapter on Web Analytics covering the setup, installation, sections of reporting, how to track conversion, events, etc. It’s a great place to start.

The definition of Exit Rate is the percentage of visitors that leave your site from a given page based on the number of visits to that page (or pageviews in some cases). Sounds similar to Bounce Rate, doesn’t it? There’s a difference, though. The visitor who exits might have visited other pages on your site, but just exited on that specific page. For example, John views an organic search listing, clicks through your site, reads a blog post, then clicks the About Us link. After finding out more about your company, John clicks the contact us link and fills out a contact form. He then exits your site. The contact us page is where he exited. In contrast, if he simply visited the site via organic search and left without visiting any other page, it would have been a bounce. Make sense?

Why are Bounce Rate and Exit Rate Important?
Both metrics are important in web analytics and can help online marketing people glean insights from the data, but they are definitely used differently. Bounce Rate is extremely important for determining how your landing pages perform as compared to visitor expectations. For example, if you run paid search campaigns, then you know the importance of testing a landing page (optimizing the landing page). I find that bounce rate at the aggregate level doesn’t tell you very much (site level bounce rate), but I find that bounce rate at the page level is extremely useful. It actually makes a lot of sense if you think about it. For example, if you are driving paid search visitors to your landing page selling Coffee Makers {OK, it’s 5AM and I’m tired :-)}, and you have a 70% Bounce Rate on that page, you’ve got a problem. Why are that many visitors bouncing after clicking through your paid search ad and landing on a page that theoretically should be highly targeted? This is actually the fun part…digging into the data, optimizing the page, and using multivariate testing to lower your bounce rate and to increase conversion. As you can see, bounce rate can help you determine how well your landing pages perform (which directly affects revenue and ROAS).

In my opinion, Exit Rate is more important for determining which page in a process isn’t performing up to expectations. For example, if you have mapped out scent trails on your site (ala Persuasion Architecture), and you find visitors are exiting the site on a webpage that clearly is a stepping stone to a more important page, then you should probably take a hard look at that page’s content. Are the calls to action not compelling enough? Does the page provide content that throws off visitors? Is there a technical issue with the page? Does it take too long to load? So on and so forth. Note, that for specific processes like cart checkout, you should use funnel analysis, but analyzing exit rate for more open ended processes works well (like targeting a type of buyer and providing a scent trail for them to get to a registration form.)

Different Yet Important
As you can see, both metrics are very different, but both are important. My recommendation is to start analyzing Bounce Rate and Exit Rate for key pages and processes on your site. I would begin with a focused effort, like a landing page that receives a lot of paid search traffic (for Bounce Rate) and possibly a lead generation process on the site for Exit Rate (if you have one). I won’t cover the process of optimizing your content in this post, but you can read an introduction to multivariate testing using Google Website Optimizer to learn more about website testing. I believe multivariate testing is a critical component to increasing conversion and lowering bounce rate for your key landing pages. It can help you increase revenue without adding one more new visitor to your site. Intriguing, isn’t it? :-)

In closing, who thought that bouncing and exiting would be an interesting topic in marketing? ;-) Addressing Bounce Rate and Exit Rate can help you meet customer expectations, which can lead to higher conversion rates (whether that means sales, registrations, RSS subscriptions, etc.) There is one more point worth mentioning… although you can learn a lot from both Bounce Rate and Exit Rate, don’t forget about qualitative data. During your optimization process, ASK YOUR CUSTOMERS AND VISITORS about your key landing pages via surveys, focus groups, phone calls, etc. You may be too close to the content to see what’s wrong and you would be amazed to read and hear what actual visitors have to say.

GG

Filed Under: google-analytics, SEO, web-analytics

A Review of Google Analytics v2 – Part 1

May 31, 2007 By Glenn Gabe

Google Analytics v2The latest version of Google Analytics (v2) arrived a few weeks ago, and although I’m a big Coremetrics fan, I am also an advocate of Google Analytics. I have several clients that use Google Analytics and I also use it for my own websites. The new version is really strong and I plan to write several posts about the new features over the next few months. Today I wanted to begin my review with some of the top features that I use on a regular basis. Let’s jump right in!

The New Interface:
Well, you can’t miss this one when you log in. :-) The new interface is extremely slick. Google obviously worked very hard to make it as easy as possible to find the information you are looking for and in as few clicks as possible. For example, clicking the Visitors tab, you are presented with trending in the top area (along with a dropdown for changing the metric). Then you are presented with additional key metrics below the trending graph along with links to even more information (a good drilldown feature). The trending graph is flash-based and enables you to hover your mouse over a time period to see data in real time. Very nice. Using the dropdown, I can easily change the metric from visitors to bounce rate, pages per visit, etc. It’s fast and there is no refresh needed…and no need to jump to additional pages.

Screenshot of New Interface:
Google Analytics New Interface

Revenue Just a Click Away:
If you are running an e-commerce site, then revenue is what you are looking for, right? With the new version of Google Analytics, e-commerce metrics are simply a click away. For example, if I click the Traffic Sources tab, then click Referring Sites, I am presented with site usage information (like visits, pages/visit, avg. time on site, etc.) However, there are two more tabs next to Site Usage, which are Goal Conversion and e-commerce. Clicking e-commerce now shows me Revenue for each referring site. I did not have to jump to another page and I didn’t even have to refresh the page. Again, fast and slick. Get me the information I want as quickly as possible. Then, I can click on a specific referring site to see more information. For example, I can segment Referral Path and see where visitors came from on the referring site, or segment Visitor Type to see if they are a new or returning visitor. Note that the e-commerce tab is present on many reports, enabling you to quickly match visitors with revenue. i.e. Click the New vs. Returning tab under Visitors and you can easily see the revenue from each segment (as well as goal conversion).

Screenshot of e-Commerce:
Google Analytics e-Commerce

Traffic Sources:
Many people involved with web analytics are fanatical about checking which sites are sending traffic their way. Was it from a blog post, an article, social media, search engines, etc. The Traffic Sources tab enables you to quickly find the information you are looking for, as well as revenue associated with those sources. For example, if I click All Traffic Sources under the Traffic Sources tab, I am presented with a list of sites/channels that have sent traffic our way. So, I see that Google Organic ranks second in sending traffic our way for the time period I selected. Then I quickly click e-commerce to see revenue totals. It shows me that Google Organic was the third highest revenue generating traffic source. So, I’m intrigued…I click the link for Google Organic, which gives me more information about the channel. I see trending over time, I can segment the traffic (maybe by landing page so I can see where Google organic visitors are landing on the site), and I see other key metrics like pages/visit, bounce rate, and avg time on site.

If I click the Search Engines Tab under Traffic Sources, I see the top search engines that sent traffic our way. I can click each search engine link to see the actual keywords and associated revenue per keyword. Fast, easy, and extremely powerful. Also note that there are three links at the top of Search Engines page (under the trending graph). The links enable you to select Total Search Engine Data (both paid and non-paid), Just Paid Search Data, and Just Non-Paid Data (organic). Again, no post back, no jumping to additional pages, it’s all right there on one page.

Under Traffic Sources, there are also tabs for Referring Sites, Direct Traffic, AdWords (to track your AdWords Campaigns), and Campaigns (to track non-AdWords campaigns). These other tabs deserve their own blog post, so maybe I’ll cover them in Part 2.

Screenshot of Search Engine Traffic Source:
Google Analytics Search Engine Report

The Map Overlay Feature: Wow!
Under the Visitors tab is a feature called Map Overlay. Now, if you ever wanted to segment your visitors by location easily and efficiently, the folks at Google have really stepped up and given you what you needed. I am first presented a map of continents that sent traffic our way, so I click the Americas to drill down. Then I click North America. By the way, if you hover your mouse over a continent, country, city, etc, you can see the data in real time. Also, you can segment the data by using the dropdown I have mentioned throughout this post (so you can see revenue, bounce rate, conversion rate, etc. for each location.) Yes, impressive. Back to my example. Now I see all 50 states, each a shade of green, based on the number of visits. It looks like California sent the most traffic (it’s the darkest green), so I click on the state to drill down. Now I am listed with the cities that sent traffic our way. I notice that Los Angeles tops the list. So I click e-commerce to see how much revenue the city has brought in…can you see the power of this feature?? Then I click on the city link to see more data, like trending over time for key metrics. Needless to say, this is a powerful feature that I hope more people find out about.

Screenshot of Map Overlay:
Google Analytics Map Overlay Feature

Exporting and Emailing Reports
Google Analytics v2 has made it easy to export and email reports from the interface. In almost every report, you can click Export at the top of the screen and you are presented with several options. You can export the report as a PDF, XML, CSV, or TSV file. If you want to send the report to someone else, click the Email tab. Here you can enter email addresses, a subject line, description, and then choose a format for the report. In addition, you can easily schedule reports to be sent on a daily, weekly, monthly, or quarterly basis. The email feature is what I use extensively, and it works great. How many times have you found something in your reporting, jumped back, and said “Darn…Jim would love to see this…” Well, simply click the email tab and in seconds your report is on its way.

Summing Up Part 1 of My Review…
I can keep going here…but as you can see, the new version of Google Analytics is a powerful tool for analyzing your web operation. I wanted to hit on some of the features that I use on a daily basis and I definitely plan to keep my review going with additional posts. I am impressed with the new functionality and ease of use of the new version. As I said earlier, I use other web analytics programs as well, but for the money (it’s free), Google Analytics is a great package. There are some limitations as compared to a package like Coremetrics (read more about attribution windows here), but if you need a cost effective and powerful way to analyze your web operation, then you should definitely take a hard look at Google Analytics. If you want to learn more, then definitely check out Avinash’s blog (he is the master, the official Google Analytics evangelist, and is known in the industry by just his first name!)

Wait a minute…just picked up something in the new Google Analytics that Jim would love to see {clicking email tab, copy and paste his email address, and poof, he’s getting a pdf shortly}. :-)

Have fun!

GG

Filed Under: ecommerce, google, google-analytics, web-analytics

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