While not a huge fan of Google Analytics I find it a necessary evil for compiling my stats from all my sites. Typically, Google Analytics only reports a small fraction of my actual site traffic for Alternageek.com. Being a podcast we have traffic to our RSS feeds and that traffic gets missed. Also, if a browser is blocking javascript, that visitor won't get counted either. If a browser is blocking Google from setting a cookie when visiting your site, your number of uniques will be off from the actual number of uniques vs. returning visitors.
Take Google Analytics stats with a grain of salt. If you are running a stats system on your webserver that greps your webserver logs (Apache access logs and such) then your webserver reported numbers are going to be the most accurate numbers out there. Your webserver logs will report how many times it is requested to serve up content from your site.
Many advertising companies require you to have a third party stats reporting system because they just don't trust you to give accurate measurement. The problem with Google Analytics is that is requires javascript to be executed to count visitors. For a lot of websites, that might not be a major issue, but if you are a tech related site, you might see a huge discrepancy in the reports when looking at Google Analytics especially if your audience is mainly tech savy power users.
Browsers have the capability of blocking cookies and javascript from executing which will cause the stats reported back to Google to be inaccurate and possibly considerably lower than your actual traffic. Firefox addons such as
No Script block execution of malicious scripts to protect users but also end up blocking your tracking code which mucks up your numbers.
What is a lowly blogger to do? My suggestion is to use more than one statistics system and use the average of them. Don't just pick three javascript stats systems, pick different systems with different reporting methods.

If you are hosting your own website, check with your host to see if they offer AWStats.
AWStats is an open source application that uses your website access logs to report traffic and stats in a human readable format. I run
BetterAWStats in addition to AWStats to make the layout of the reports even easier to use. Another self-hosted stats program available is
Mint. Costs for Mint start at $30 per domain tracked.
A great third party reporting system is
SiteMeter. Sitemeter has a javascript tracker and an html tracker so you can pick either to grab stats. You will lose referring site information for visitors if you don't use the javascript code but you will catch visitor counts for those who block the code. A basic account is free and there are commercial packages available for a fee which provide more robust reporting.
Another option is using a reporting system that uses an image to track hits rather than a script (such as SiteMeter's non javascript tracking code). There are browser options and plugins to block images as well so this method will have it's own list of pros and cons.
Overall, Google Analytics has it's advantages when using Google Adsense because it's integration is unparralled. If you are looking to track the effectiveness of your advertising campains Google Analytics can't be beat but if you want reliable traffic reporting, you should use other stats apps in addition to Google's.
Thursday: 15 Stats Services to Track your Visitors
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